[Interview] Professor Lee Jeong-dong of Seoul National University: "Policy Finance Must Become Patient Capital to Lead Technology"

'National Economic Advisory Council and National Science and Technology Advisory Council' Joint Symposium
"Need to Strengthen Capability to Recognize Innovative Technologies"

Professor Lee Jeong-dong, Seoul National University.

[Asia Economy Reporter Joo Sang-don] Professor Lee Jeong-dong of Seoul National University stated, "For Korea to become a technology-leading country, the patient capital nature of policy financial institutions must be strengthened."

On the 24th, Professor Lee said in a phone interview with Asia Economy, "A technology-leading country is one that leads the 'rules of the game' through innovative conceptual design, and at this time, the role of policy finance is important."

That afternoon, Professor Lee delivered a keynote speech on the theme of 'Transition of Innovation Policy Toward a Technology-Leading Country' at an online symposium jointly held by the National Economic Advisory Council and the National Science and Technology Advisory Council.

Before Professor Lee’s keynote speech, Lee Geun, Vice Chairman of the National Economic Advisory Council, delivered the opening remarks, stating, "Despite the COVID-19 crisis, our country has grown to the world's 10th largest economy and 5th largest in R&D investment through continuous investment in industrial growth and research and development (R&D). However, there is a gap where R&D results are not smoothly connected to commercialization, and there is also a trend of financial short-termism, where finance focuses on short-term profits rather than long-term investment for the future of companies."

Through his keynote speech, Professor Lee advised, "Although the private sector accounts for three-quarters of the nation’s total R&D, private capital, which must quickly return profits to shareholders through dividends, has limitations. Policy finance must fill this gap, and to strengthen the role of patient capital, policy financial institutions such as KDB Industrial Bank, IBK Industrial Bank, and the Technology and Credit Guarantee Fund need to develop smart capabilities to recognize innovative technologies."

He emphasized that the goal should be set to present innovative concepts worldwide by strengthening the patient capital role of such policy finance. Professor Lee said, "Until now, Korea’s economy, industry, and technology have grown through catching up, but from now on, the goal should be to lead with new-to-the-world technologies. Stable support for basic research and strengthening challenging, mission-oriented programs that do not fear failure are necessary."

Meanwhile, this joint symposium was a policy forum co-hosted by the National Economic Advisory Council and the National Science and Technology Advisory Council, presidential advisory bodies in the fields of economy and science and technology respectively, under the theme of 'Virtuous Cycle of Science and Technology-Finance-Innovation and Leap to a Leading Country.' Advisory members from both councils and experts from various fields including industry, finance, and science and technology participated.