Promising to Train 1 Million Digital Talents... 'Han Ecole42' Budget Cut by 30%

'Innovation Academy' Budget Cut
Ministry of Science and ICT Explains "Reduced Support Funds for Early Employed" Leading to Decreased Structure
National Assembly Points Out Low Budget Execution Rate and Delays in Related Infrastructure Development
Current Government Launches Separate Training Institution 'SW Academy'... Criticism of Misalignment

Innovation Academy exterior. Photo by Innovation Academy

[Asia Economy Reporter Cha Min-young] The Yoon Suk-yeol administration, which has set the goal of "training one million digital talents," has cut the budget for the "Innovation Academy," which was promoted by the previous administration, by nearly 30% compared to the previous year. The government explained that this was the result of reflecting the reduction in costs for expanding educational infrastructure, but criticism is emerging that the project itself is being downsized amid a situation where the annual budget execution rate is declining.

According to the government and the National Assembly on the 7th, the Ministry of Science and ICT allocated 27.958 billion KRW for the Innovation Academy, called the "Korean version of ?cole 42," in the 2023 budget proposal, a 29.4% decrease compared to the previous year. This includes 21.4 billion KRW for supporting education costs for the 4th to 9th cohorts and 5.9 billion KRW for infrastructure construction costs.

A Ministry of Science and ICT official said, "This is only the government's budget proposal and nothing has been finalized," adding, "Costs for expanding infrastructure such as educational spaces next year have been excluded, and the education support funds paid annually are naturally decreasing due to reductions in support payments for early employed students, etc."

The Innovation Academy is a two-year, self-directed learning-centered educational institution established in December 2019 by the Ministry of Science and ICT during the Moon Jae-in administration to train software experts, benchmarking France's ?cole 42. At that time, the government set a goal of training 2,500 experts by 2023.

The education support funds for this year, which served as the basis for the 2023 budget proposal, were executed significantly less than originally planned. The government explained this as a "natural cessation of cost payments due to positive outcomes such as early employment of trainees," but the National Assembly urged strengthening operational management, stating that "the low budget execution rate is due to trainees dropping out midway."

Assemblyman Cho Seung-rae, a member of the Science, Technology, Broadcasting and Communications Committee, pointed out the issue of poor budget execution rates during last month's audit, noting that although 1 million KRW per person per month was planned, half of the trainees (46.7%) did not receive support funds. According to the assemblyman's office, out of 10,237 cumulative trainees as of July 2022, 4,777 did not receive education support funds. The office explained that these individuals did not meet academic criteria set by the academy or learning fulfillment requirements such as the Coalition Score (points awarded upon project completion), resulting in no support payments.

According to data submitted by the Ministry of Science and ICT to the National Assembly's Budget and Accounts Special Committee, the monthly education fund payment rate in 2022 ranged from 55.5% to 71.8%. In 2021, only 13.3 billion KRW, which is 67.0% of the budget amount, was executed. Inspection committee members who participated in the academy's progress check in August also pointed out the low budget execution rate.

Due to delays in infrastructure construction, related budgets have also been deferred annually. The National Assembly Budget Committee noted that the Innovation Academy project includes infrastructure construction to expand the Boram Building within Gaepo Digital Innovation Park to secure educational space, but only 800 million KRW was finally executed by the end of 2021. This is only 5% of the original budget of 15.8 billion KRW, and the committee urged better project management.

Some argue that the new government is creating discord by establishing separate training institutions despite the common goal of "software talent development." In response, a Ministry of Science and ICT official said, "Although the purpose of nurturing software talent is the same, the roles of the two institutions are different," adding, "The SW Academy, launched in June, is also a project from the previous administration, so the criticism of discord is unfounded."

The Ministry of Science and ICT launched public-private linked SW Academies with major companies after the inauguration of the Yoon Suk-yeol administration in June. This aligns with the Yoon administration's policy to nurture one million digital talents by 2027. Approximately 17 billion KRW has been allocated for this year. The government budget proposal will be finalized after approval by the National Assembly plenary session and other procedures.