[Q&A] "Full Effort to Train Young Talents for Employment at Ne, Ka, Ra, Ku, Bae"

Minister Lim Hye-sook of the Ministry of Science and ICT Announces Key Initiatives at First Press Briefing on the 5th

[Asia Economy Reporter Kim Bong-su] "Have you heard of Ne-Ka-Ra-Ku-Bae (Naver, Kakao, Line, Coupang, Baedal Minjok)? They are all struggling with a shortage of digital talent. We will make every effort to nurture talent."

Minister Lim Hye-sook of the Ministry of Science and ICT held her first press briefing about 50 days after taking office, sharing her stance on current issues such as the expansion of the Digital New Deal, nurturing digital talent, focused investment in future core technologies, re-promotion of the Nuri rocket improvement project, and support for COVID-19 vaccine development.

Minister Lim first stated, "Our goal is to create a research environment where Korean researchers can become first movers on the global stage without being hindered by various constraints." She introduced key initiatives including accelerating the expansion of the Digital New Deal, supporting the 5G Plus industry through leading investments, securing core national technologies and excellent talent, actively preparing for the New Space era in the space sector, enhancing infectious disease response capabilities, and expanding the foundation of basic research. Below is a Q&A with Minister Lim.

▲ Your remaining term is at most 7-8 months; which area do you especially want to achieve results in?

= Perhaps because I majored in ICT, I am very attached to the Digital New Deal. We have achieved good results over the past year. We will continue to successfully promote it to achieve further good outcomes. The Digital New Deal has shown results in industrial aspects and job creation. I am particularly interested in digital inclusion. People may feel the digital divide and difficulties, so we will pursue policies that embrace everyone and allow all citizens to enjoy the benefits of the digital era together. There is also a strong voice from the field about the shortage of artificial intelligence (AI) and software talent. Having spent a long time in schools, I have a good sense of how to nurture talent. We will implement policies to cultivate excellent AI and software talent to meet industry demand. We will discover and prepare future growth engines through bold research and development (R&D) investments in system semiconductors, 6G, space development, carbon neutrality, and quantum technologies. We cannot neglect COVID-19 vaccine and therapeutic development either. We will strengthen support for vaccine candidate development and platform research. Following the Korea-US summit, exchanges of science and engineering personnel and cooperative research with the US are also important areas. We will carefully manage those as well.

▲ How is the Artemis Accords being specifically promoted?

= (Ko Seo-gon, Director of R&D Policy Office) The Artemis Accords contain principles and policy directions for safe and peaceful lunar exploration. Currently, there is a plan to launch NASA's ShadowCam on the 2022 lunar exploration orbiter (KLPS) to explore the lunar polar regions, and the Korea Astronomy and Space Science Institute is participating in the US Commercial Lunar Payload Services (CLPS). Specific participation details need to be discussed with the US side. The related budget is about 34 billion KRW.

▲ Are there any Digital New Deal achievements that the public can feel?

= Although it has only been a year since its launch, the industry is rapidly undergoing digital transformation. The number of companies launching new services using data is increasing. Even non-ICT companies are digitalizing their operations using data, showing changes in existing areas. Although still in the early stages, the DNA (Data, Network, AI) industry is growing. There are achievements in job creation as well. AI training data has created 1,000 jobs, helping to alleviate difficulties in the employment market affected by COVID-19. A total of 642 companies participated in creating AI training data, which is a significant achievement. Good progress has also been made in digital inclusion and talent development. Currently, over 1,000 digital learning centers operate nationwide, with 430,000 citizens receiving digital education there. This is a positive outcome. Moving forward, to make the Digital New Deal achievements tangible to the public, we will continue the projects with policy continuity. Regarding inclusion, devices must be designed to be accessible and usable even without digital knowledge. We will promote new related policies such as improving access to digital devices.

▲ What is your stance on the lawsuit over network usage fees between Netflix and SK Broadband?

= We need to observe how follow-up work between the industries proceeds. The Ministry of Science and ICT's role is to support new businesses. We must set policy directions and support OTT content and other value-added communication new businesses so that they are not hindered by regulations.

▲ The budget for the Nuri rocket improvement project was cut; how will space development policies aiming for lunar exploration by 2030 be promoted?

= There were two types of preliminary feasibility studies (PFS) related to Nuri. One was for repeated launches to improve reliability, and the other was for the improved version. The repeated launch part passed the PFS. Preparations are underway to launch Nuri four more times. However, the improved version did not pass the PFS. The missile guidelines termination was not reflected, and there were criticisms about a lack of challenge. We will re-promote the project by enhancing reliability, reflecting the post-missile guideline termination aspects, and supplementing the challenge level.

▲ What are the achievements and limitations in the development direction of digital media?

= Digital media involves multiple ministries such as the Korea Communications Commission, Ministry of Culture, Sports and Tourism, and Ministry of Science and ICT. Since it is at least an ICT-related industry, a lead ministry is necessary. The lead ministry should exist and lead cooperation with other related ministries to develop the industry. Going forward, the Ministry of Science and ICT will take the lead in the digital media industry and promote industrial development by leading cooperation with other ministries. Several bills have been proposed and various promotion strategies exist. We will push forward to develop the digital media ecosystem.

▲ What do you think about the digital tax?

= There should have been international discussions on the digital tax. There were discussions at the G7 summit, and the finance ministers' meeting is expected to have concrete discussions, which is welcome. It is good that platform operators like Google and Netflix are taxed in Korea, but we need to consider the taxation of export-driven companies like Samsung Electronics and SK Hynix overseas. The extent of taxation and the target companies have not been finalized. Once discussed at the finance ministers' meeting, we can prepare our strategy and promotion direction.

▲ The 28GHz demonstration project with the three telecom companies is underway; is mandatory deployment possible within this year? Is joint deployment possible?

= Regarding the 28GHz demonstration project, I recently met with representatives of the three telecom companies to discuss it. I asked them to conduct many demonstrations so that the public can experience new 28GHz services. Several plans are underway. The mandatory deployment is set for the end of the year, and we are reviewing it for next year. We will look into it and announce policy directions during next year's review. Regarding joint deployment, technically, joint deployment in 5G 3.5GHz rural areas is a good idea and even won an award at MWC. However, technically, joint deployment of 28GHz is not considered a good idea. When 28GHz does not work, the signal should drop to lower frequencies, but since 3.5GHz has separate networks, joint deployment is not seen as a good idea. We have not yet examined joint deployment of 28GHz.

▲ Do you intend to improve the performance-based budgeting system (PBS) and the preliminary feasibility study (PFS) system?

= When visiting research sites, I heard voices about difficulties with the PBS system. However, some researchers think positively about PBS. It is difficult to say that it should be improved uniformly. Projects are too fragmented. Many short-term projects are coming out as PBS. Projects should be restructured to be long-term and large-scale. Research and development should be conducted with a long-term perspective. Even small categories of projects at government-funded research institutes are already predetermined. There is no room to conduct research according to emerging issues. We will reflect this in the review process.

▲ Are there plans to promote the construction of a space internet network?

= 6G technology is understood as technology where satellites are launched and internet data is relayed via small satellites. The Ministry of Science and ICT should promote basic research and development of 6G, small satellite R&D and launches, and related areas.

▲ Why was the signing of the Artemis Accords delayed compared to other countries?

=(Ko Seo-gon, Director) The Artemis Accords relate to space exploration. Korea has focused on satellites and launch vehicles in its space projects, so exploration has been weak. Lunar exploration prompted space exploration efforts, but it was distant from direct research. That is why it was delayed. Overall, as Korea's space capabilities improved and were recognized, we proceeded. Korea is now planning to emphasize space exploration, including launch vehicles, satellites, and utilization. We are planning how to connect this industrially. Space exploration is newly being promoted.

(Yong Hong-taek, 1st Vice Minister) The government consulted with the US last year. The Korea-US summit accelerated the process. It was not an impromptu decision at the summit but had been discussed since last year.

▲ You said the phase-out of nuclear power is correct; do you still hold the same view?

= It is not about immediately phasing out nuclear power. The policy is to gradually reduce nuclear dependence over 60 years. There are several reasons. Korea has large nuclear power plants concentrated in 3-4 locations in a small territory, which poses risks. The phase-out policy was decided for this reason, and there is no change in this stance. Nuclear dependence should be gradually reduced. Since Korean nuclear technology is world-class, it should be well utilized to export nuclear power plants or build overseas nuclear plants. Active R&D should continue. There may be controversies, but sufficient persuasion is needed according to Korea's situation. If there is demand for Korean technology, which is world-class, it can be exported.

▲ When will domestically produced COVID-19 vaccines and therapeutics be developed?

= It is the wish of all citizens. Vaccines produced in Korea are needed. Regarding development progress, several companies have completed phases 1 and 2 and are conducting phase 3. However, entering phase 3 is difficult because Korea has few COVID-19 patients, so clinical trials must be conducted overseas, requiring huge budgets. On the other hand, some therapeutics have conditional approval and are being used for treatment. Vaccine and therapeutic development must continue. Infectious diseases will not end quickly, and new infectious diseases may emerge. Experience in vaccine development and platforms is important. The Ministry of Science and ICT must actively support candidate material development, animal testing, and R&D.

▲ You emphasized talent development; what are the specific plans?

= I will start with AI and software talent development. There is huge demand in the industry. Have you heard the term 'Ne-Ka-Ra-Ku-Bae' referring collectively to Naver, Kakao, Line, Coupang, and Baedal Minjok? They need many talents and are companies people want to work for. Software talent is needed not only in software companies but also across industries like manufacturing and energy as digital transformation accelerates. When visiting government-funded research institutes, I often heard that personnel capable of analyzing research data using software and AI are needed, but there is a severe shortage. Cultivating this talent is the first task.

We will pursue three approaches. First, excellent talent must be properly nurtured in schools. We will continuously expand software-focused universities from about 40 to 64. Second, we will support private talent development organizations such as Innovation Academy and Jungle to provide quality education. Third, professionals with expertise will be encouraged to take software courses and training to apply in research. Talent development for basic research is also necessary. Through lifecycle-appropriate research support projects, we will ensure researchers do not face research discontinuity or dropout due to lack of funding. We will also focus on talent development for youth and women. Many ideas are needed.