logo
S. Korea suffers OECD's 4th-biggest AI brain drain

S. Korea suffers OECD's 4th-biggest AI brain drain

Korea Herald7 hours ago

South Korea, despite being a leading producer of educated professionals in artificial intelligence and science, is rapidly losing talent to countries such as the United States, Canada, Japan and Germany, according to a new report released Wednesday by the Korea Chamber of Commerce's Sustainable Growth Initiative.
In 2024, South Korea recorded a net loss of 0.36 AI experts per 10,000 people. That puts it near the bottom of the 38 member countries of the Organization for Economic Cooperation and Development, at 35th place.
Luxembourg, by comparison, gained 8.92 persons per 10,000 people. Germany gained 2.34 and the US 1.07. This measure subtracts the number of local professionals leaving the country from those coming in. In Korea's case, the gap is growing wider every year.
This trend marks a reversal from what had been a modest but positive inflow of AI talent into South Korea. Just five years ago, in 2020, the country recorded a net gain. That has since shifted to a steady and worsening outflow.
The broader science sector tells a similar story. In 2021, Korea's rate of scientists moving abroad (2.85 percent) was higher than the rate of foreign scientists moving in (2.64 percent). This placed Korea 33rd out of 43 countries in terms of scientific talent retention.
The US is the top attractive destination for Korean researchers. The US issued 5,684 high-skilled EB-1 and EB-2 visas to Korean nationals in 2023. That is roughly 11 per 100,000 people, a far higher rate than China (0.94), Japan (0.86) and even India (1.44). And 71.1 percent of Korean Ph.D. graduates in the US reported plans to stay there long-term, a rise from the previous five years, when it had stayed below 70 percent.
The SGI report identifies several structural issues behind the exodus. Chief among them is Korea's rigid and hierarchical workplace culture, which many young professionals find stifling. Compensation is also a major issue. The median starting salary for assistant professors in Korea is about $32,000 a year. In the US, it's over 83,000. Countries like Japan ($46,000) and Germany ($70,000) also pay significantly more.
In addition, the report posits that Korea's 52-hour workweek cap, though intended to protect workers, often limits the flexibility that high-performing researchers need. Other countries make exceptions. The US, for instance, exempts many high-earning professionals from strict working hours regulations. Japan and Germany also allow special provisions for researchers in advanced fields.
With Korea's working-age population shrinking and the research workforce projected to decline by over 20 percent by 2040, the report warns that the country faces a future where it trains the world's talent but struggles to keep enough of it to sustain its own growth.
SGI recommends sweeping policy changes, including performance-based pay, flexible work arrangements for high-skilled professionals, and structured incentives for overseas Koreans to return.
'We're watching the foundation of Korea's scientific future quietly erode,' said SGI researcher Kim Cheon-goo. 'And we are helping build it elsewhere.'

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Kakao Bank wins approval for Thailand's first virtual bank
Kakao Bank wins approval for Thailand's first virtual bank

Korea Herald

time33 minutes ago

  • Korea Herald

Kakao Bank wins approval for Thailand's first virtual bank

Korean lender sets sights on second-half 2026 launch under SCBX-led joint venture Kakao Bank, South Korea's leading internet-only lender, has secured final approval to establish Thailand's first digital bank, marking the official launch of its joint venture with Thai financial giant SCBX to roll out services next year. The Bank of Thailand on Thursday announced the winners of its long-awaited virtual banking licenses, selecting three applicants from five contenders. The SCBX-led consortium — whose members include Kakao Bank and Tencent-backed Chinese digital lender WeBank — was among those granted a license. The other winners were ACM Holding Company and a consortium led by state-run Krung Thai Bank. The licenses were issued following a review by Thailand's Ministry of Finance, based on central bank recommendations. Authorities assessed business models, digital capabilities and each group's potential to boost financial inclusion, particularly for underserved consumers and small businesses. Thailand's central bank said the digital lenders are expected to enhance customer experience, increase efficiency, and drive healthy competition through innovation and better pricing. Regulators also weighed the optimal number of new banks to foster healthy competition while maintaining financial system stability. The approved candidates are required to establish a corporate entity in the third quarter and commence operations within one year, setting the stage for operations to begin in the second half of 2026. The milestone comes two years after Kakao Bank, a subsidiary of Korea's IT giant Kakao, signed a memorandum of understanding with SCBX in June 2023 to collaborate on developing Thailand's first digital bank. SCBX is the holding company of major Thai lender Siam Commercial Bank. This marks Kakao Bank's second overseas venture after launching Superbank in Indonesia through a joint venture with Grab. It remains the only Korean internet-only bank with international operations. The move also signals a meaningful return of Korean banking to Thailand, nearly three decades after Korean lenders exited the market during the 1998 Asian financial crisis. 'Drawing on its experience in shaping Korea's digital banking landscape, Kakao Bank will play a leading role in building the new Thai digital bank, overseeing the development of its technology infrastructure and service design,' a company official told The Korea Herald. Once established, Kakao Bank will become the second-largest shareholder in the new online lender. In response to the approval, Kakao Bank CEO Yun Ho-young called the license "a stepping stone into a new market and a valuable opportunity to showcase the strength of Korea's digital finance technology," adding that the firm aims to serve as a bridgehead for Korean banks and companies seeking entry into the Thai market.

Naver shares surge on AI optimism, hit 52-week high
Naver shares surge on AI optimism, hit 52-week high

Korea Herald

time4 hours ago

  • Korea Herald

Naver shares surge on AI optimism, hit 52-week high

Naver shares surged for the second consecutive session on Thursday, buoyed by investor optimism over the Lee Jae Myung administration's commitment to nurturing the domestic artificial intelligence sector. The internet giant closed at 252,000 won ($182.47) on the main bourse Kospi, up 3.49 percent from the previous session. This followed a nearly 18 percent on Wednesday, marking a two-day rally that has captured market attention. It is the first time Naver shares have topped 250,000 won since Aug. 19, 2022, when it traded at 251,000 won. During early trading Thursday, Naver briefly touched 259,000 won, setting a new 52-week high. The company's market capitalization ranking also rose, climbing from 11th to 8th on the Kospi in just two trading days, overtaking Samsung Electronics preferred shares, Kia and Doosan Enerbility. Investor sentiment has been further buoyed by the appointment of Ha Jung-woo, head of Naver's Future AI Center, to the newly established post of senior presidential secretary for AI and future technology planning. His appointment is seen as a strategic move aligning with the government's AI ambitions. President Lee has pledged to build a national large language model to make AI accessible to all citizens, raising expectations for Naver's participation in the landmark project. Global investment banks have reinforced this momentum. On Tuesday, JPMorgan raised its target price for Naver from 250,000 won to 270,000 won, while maintaining its 'overweight' rating. Citigroup followed suit Thursday, naming Naver its top pick among Korean internet platform stocks and lifting its target price from 270,000 won to 300,000 won. 'Foreign investors turned net buyers after JPMorgan raised its investment rating on Naver to 'overweight,' citing potential benefits from the Korean government's 100 trillion won AI investment plan and the appointment of a new senior secretary for AI who previously served at the IT giant,' said Lee Kyung-min, an analyst from Daishin Securities. Meanwhile, shares of Naver's crosstown rival Kakao also rallied as a potential beneficiary of AI policies. Kakao closed at 60,400 won, up 9.42 percent from the previous session. During the day, the stock hit a 52-week high of 61,800 won.

Kimchi, ginseng and halal beef: Korea's food diplomacy gets foothold in UAE
Kimchi, ginseng and halal beef: Korea's food diplomacy gets foothold in UAE

Korea Herald

time4 hours ago

  • Korea Herald

Kimchi, ginseng and halal beef: Korea's food diplomacy gets foothold in UAE

Through food fairs, Korean culture showcases in UAE, Korea deepens commercial ties across Middle Eastern markets for Korean flavors DUBAI, United Arab Emirates — Welcoming a contingent of Korean food makers, an exhibition hall in Dubai, United Arab Emirates, turned into a vibrant showcase of Korea's food industry Tuesday. The 2025 Dubai K-Food Fair, a two-day event held from Tuesday to Wednesday by the Korea Agro-Fisheries & Food Trade Corporation, or aT, brought together 30 Korean companies and 60 buyers from across the Middle East. Thirty booths lined the venue, each representing a slice of the K-food industry, with a singular purpose: To turn Korea's food culture into tangible export deals in Islamic consumer markets. Much of the focus centered on red ginseng, rice cakes, Korean beef and, perhaps needless to say, kimchi. During the fair, more than 251 tailored one-on-one meetings were conducted, culminating in seven memorandums of understanding valued at over $2 million, according to aT. At Nonghyup Red Ginseng's booth, a director surnamed Nam, fresh from a business meeting with a local buyer, said the buyer had shown keen interest in the product's reputed health benefits and skin-enhancing properties. 'We're equipped to produce halal-certified ginseng," he said. "With the UAE's strategic location, strong consumer spending and rising appreciation for Korean ginseng, it offers an ideal entry point to the broader Middle Eastern market." Roydon Dmello, CEO of Pure Heart General Trading, was among the many buyers at the event. He said that tteokbokki, Korea's spicy rice cake dish, has the most market potential. 'I think tteokbokki has strong growth potential, but if the texture were a bit softer, people would enjoy it more,' he said, adding that he also imports rabokki, a variation that includes ramyeon, which sells very well. Enthusiasm for Korean food among UAE consumers is already showing up in the numbers. As of May, Korea's food exports to the UAE had risen 40.2 percent on-year, totaling $116 million. Joo Won-chul, director general of the Food Industry Policy Bureau at the Ministry of Agriculture, Food and Rural Affairs, pledged to adapt to shifting conditions to sustain Korean food's momentum. 'We will respond swiftly to the rapidly changing export landscape and actively address the challenges faced by exporters," he said. Change of scene, palate The event's success encapsulates a sharp shift, according to Shin Dong-chul, founder of 1004 Gourmet, a UAE-based Korean food and beauty retail company that operates five stores and supplies Korean products to more than 600 hotels and restaurants. When the first shop opened in 2008, Korean food was largely unfamiliar to local consumers. 'Back then, around 80 percent of our customers were Korean expatriates. Now, that figure has flipped, 80 percent are non-Korean,' Shin said during an interview with The Korea Herald, attributing the shift to the global rise of Korean culture and, more recently, word-of-mouth among chefs and influencers. Shin is also at the center of a growing campaign to introduce premium Korean cuisine, particularly Hanwoo to one of the world's most discerning halal markets. 'The chefs here always ask, 'Where's the Hanwoo?'" Shin said. 'They know it from visits to Korea. They remember the flavor.' Unlike Japanese Wagyu, prized for its high fat content, Hanwoo offers a more balanced profile with rich aroma, distinct flavor and a savory, firm texture, he added. Hanwoo's popularity was palpable not only at the food fair but also at its first-ever launch showcase in Abu Dhabi, hosted by aT a day earlier to introduce Korea's halal-certified Hanwoo. 'At Hanwoo's first launch event, several attendees expressed interest in importing the beef," an official from the Hapcheon Livestock Cooperative Federation said. "During the fair, one group visited a different Hanwoo booth and signed an MOU.' Korean food fervor in Dubai shows no signs of slowing, with the Dubai branch of Korea 360 — a physical space established through interagency efforts to showcase Korean content from dramas and K-pop to food, fashion and cosmetics — helping sustain the momentum. 'Since opening in April, the Dubai branch has drawn an average of 1,200 visitors on weekends and about 400 on weekdays,' said Park Young-il, director of the UAE Business Center at the Korea Creative Content Agency. Park said the venue, which will run through April next year, is expected to promote Hallyu and support Korea's broader market expansion in the Middle East.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store