Korea’s Science and Technology at a Crossroads: Urgent Reforms Needed for Global Competitiveness

Revitalizing Korea's Science and Technology Industry

Kim Hyun-seok, head of the R&D Strategy Planning Division at the Ministry of Trade, Industry and Energy and former president of Samsung Electronics, recently shared his insights on the current state and future direction of Korea’s science and technology sector.

During visits to major domestic research institutes, Kim noticed many were working on projects already completed by corporations years earlier. He stressed the need for better coordination and clear division of responsibilities between research institutes and companies. "We need to work closely with corporations and organize efforts to avoid redundant projects," he said.

Strengthening R&D Capabilities and Teamwork

Kim emphasized that competing globally for talent requires boosting the foundational skills of domestic researchers and fostering effective teamwork. He criticized the current approach of dividing R&D projects into many small tasks spread across different teams. Instead, he advocates for larger, well-funded projects managed by groups of researchers to encourage collaboration and deeper expertise.

Regarding Korea's AI capabilities, Kim described the country as being at a beginner level. He highlighted the importance of focusing on industry-specific AI (domain-specific generative AI) rather than developing general large language models (LLMs) aimed at the broader public. According to him, practical AI solutions tailored to the needs of individual industries should take priority over universal models.

Data Regulation and Openness

Kim pointed out that excessive data regulation is a major barrier to innovation. Although the government controls vast amounts of data, access is severely limited, which hampers development. He called for clearer privacy definitions and standards to enable secure data sharing, especially in sectors like healthcare where access to patient records is critical but currently restricted.

"Data reveals what people are thinking," Kim said, stressing that regulations often default to blocking data because of uncertainty and a desire to avoid responsibility. Relaxing these restrictions with proper safeguards would benefit developers and accelerate innovation.

Addressing Talent Drain and Workforce Challenges

Korea faces a shortage of top-tier talent in semiconductors, software, and AI. Many skilled professionals are moving abroad, attracted by high salaries offered in countries like the U.S., where AI experts can earn over $1 million annually. Some Korean corporations have already set up R&D centers overseas to offer competitive compensation, but this results in valuable expertise being cultivated outside Korea.

Kim likened his role to coaching a national team and drew a parallel to Guus Hiddink’s 2002 strategy of improving fitness and teamwork rather than relying solely on star players. He believes enhancing the collective capabilities of researchers and unifying efforts can compensate for individual talent gaps.

Improving R&D Strategy and Execution Speed

One key issue Kim highlighted is the slow pace of government budgeting for R&D. The process often takes over two years from proposal to budget allocation, which causes delays that leave industries out of sync with rapidly changing technology trends.

He proposes shifting to a "perform first, be accountable later" model similar to corporate project execution, where decisions and implementations happen quickly, followed by evaluation and adjustment. Speed in decision-making and action is critical to staying competitive.

Vision and Next Steps

• Visit all domestic research institutes to assess strengths and set clear guidelines for the division of R&D labor
• Engage with corporations to understand their needs and facilitate collaboration with research institutes
• Focus on building an ecosystem that encourages startups and creates opportunities for rapid wealth generation to attract talent back into engineering roles

Kim warned that without immediate action, Korea risks falling behind. Economic growth projections are shrinking, and even "fast follow" strategies are becoming difficult. However, he remains hopeful that a strong sense of crisis will unite stakeholders to drive change.

For IT and development professionals interested in AI and innovation, focusing on industry-specific AI solutions and understanding the changing R&D landscape in Korea can provide valuable opportunities. For practical AI training and courses, resources like Complete AI Training offer up-to-date programs designed to build relevant skills.