Former Samsung Electronics President Lim Hyung-kyu Gives Special Lecture at National Assembly
Success Depends on Securing Skilled Workforce in Advanced Industries
[Asia Economy Reporter Naju-seok] Former Samsung Electronics President Lim Hyung-kyu emphasized on the 13th that the biggest issue in Korea's advanced technology industry is securing technical talent. He stressed that to secure competitiveness in advanced technology industries such as semiconductors, educational R&D reforms are needed to change the current reality where the best talents flock to medical schools, along with improvements to incentive systems for technical talent.
Lim, author of "Hidden Heroes," said in a special lecture at the Global Innovation Research Forum held at the National Assembly that "It is wrong that the top talents are concentrated in medical schools," adding, "It is important for society to convey that (core technicians) are important people and heroes who protect our society, and for the government to establish award systems to recognize their importance."
Regarding the background of Korea's semiconductor industry becoming a leader, he said, "In the past, the best students went to engineering colleges," and "In the past, the top 1st, 2nd, and 3rd in the class went to engineering colleges, and from 4th place onward, they went to medical schools." He also said, "The reason Japan was overtaken by Korea in semiconductors is fundamentally because Japan lost the competition to Korea and Taiwan," and "Korea was much hungrier and more excellent." Lim added, "Fundamental competitiveness is usually built over 10 to 20 years, so it doesn't seem to have weakened that much now. Thanks to the talents we nurtured 10 or 20 years ago, we are maintaining it now," but also said, "It is hard to say that much effort has been made in this area over the past 20 years, so from now on, we need to seriously address this issue."
Im Hyung-kyu, Former President of Samsung Electronics / Provided by Office of Representative Yang Hyang-ja
Lim emphasized the necessity of securing technical talent, saying, "The level of core technicians determines a company's technology." He said, "Samsung Electronics survived the great upheaval in the semiconductor market in the 1990s and became number one in the world because of its technology," adding, "Because the technology was good, customers were solid, and the ability to use the chicken game as a trump card was also thanks to technology."
Lim explained that the competitiveness of advanced industries depends on securing detailed technological capabilities within the advanced industry. He said, "I call the people leading the technology streams 'Hidden Heroes,' and they are not just one or two people but 1,000," adding, "Each of these 1,000 works with about 20 team members. The level of the team is determined by the level of these (Hidden Heroes) 1,000, and the company that evenly possesses the top of this technology stream can lead."
Lim said, "In a way, these few thousand people protect the country's economy," and "All advanced people are like that. The level of technicians determines the company's technology, and the competition is decided there."
He said that in addition to raising awareness about technology, the incentive system also needs improvement. Lim said, "In the case of Taiwan's TSMC, when the company makes a profit, it gives stocks to employees," adding, "This motivates them to make tremendous efforts to become a successful company." He emphasized the need for an incentive system that can motivate technical talent. He said, "For example, if there is a profit and the person is core personnel, they should be able to receive up to 500% of their salary," adding, "The importance is not recognized enough compared to the role they play."
He also argued that selection and concentration should be made on major technologies and inevitable businesses. He said, "The strong should become stronger," and "To be as strong as global companies in a small country, we need to form one team, overcome the world's barriers, and create representative players of our country." Regarding education, he said, "Technology-related heads need to think more," and "We must ensure that young researchers are not wasted on technology research that does not produce results," adding that "a roadmap and R&D system from the Ministry of Education and others are also necessary."
He also mentioned improving immigration policies to secure talent, saying, "We should consider selecting and employing excellent people, especially from countries unlikely to become future competitors," and "The government should do what is necessary in terms of immigration policy to help companies utilize overseas personnel."
Regarding the tax credit for advanced industries such as semiconductors being discussed by the government and the National Assembly, he said, "Tax credits will help domestic job creation and semiconductor competitiveness," adding, "Since investment requires money, it will have an effect like a tonic." The National Assembly's Planning and Finance Committee will discuss an expansion plan for integrated investment tax credits for semiconductor companies and other advanced industry companies starting on the 14th. The government submitted a revision bill to the National Assembly on the 19th of last month to raise the basic deduction rate applied to tax credits for investments in national strategic technology commercialization facilities such as semiconductor-related facilities from 8% to 15% for large and medium-sized companies, and from 16% to 25% for small and medium-sized enterprises.
Meanwhile, Yang Hyang-ja, an independent lawmaker who hosted the forum, said, "Korea's semiconductor industry created something out of nothing," and "In the global technology hegemony war being reorganized around technology, politics, and academia, government-level policy and legislative support are essential for us to win the competition," urging, "Please continue to pay attention to the growth of the domestic semiconductor industry in the future."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
