[Revival of Deputy Prime Minister for Science and Technology] AI as a National Strategic Technology... Need for Innovation Governance Beyond Budget and Policy

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The renewed attention to the position of Deputy Prime Minister for Science and Technology ahead of the new government’s inauguration has been largely driven by the rapid changes in the technological environment following the emergence of ChatGPT. As artificial intelligence (AI) technology spreads across all sectors, the Ministry of Science and ICT has become too large to serve as the sole control tower. The fact that each party’s presidential candidates are emphasizing the reintroduction of the Deputy Prime Minister for Science and Technology is also closely related to these changes.

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As of this year, the approximately 30 trillion won in science research and development (R&D) funding has reached a critical turning point in the era of artificial intelligence (AI). There is not enough authority to expand AI strategies led by ministerial-level departments to all ministries. Not only are tens of trillions of won needed for the introduction of graphics processing units (GPUs) and the establishment of data centers, but there is also a need for a control tower to lead large-scale projects of similar magnitude that transcend ministerial boundaries, including power generation and data utilization. In the absence of a sufficient control tower, Korean semiconductor companies have been unable to fully capitalize on the opportunity to lead the AI semiconductor era with high-bandwidth memory (HBM). Major domestic IT companies have failed to present a proper AI foundation model, falling behind not only the United States but even China. Most citizens created their KakaoTalk profile pictures using ChatGPT, developed by an American company.

Strong leadership is essential to avoid falling behind in the investment race of the AI era, which now includes not only the United States and China, but also Japan and the Middle East. However, Korea has taken a step backward. The nation’s science and technology administrative system has gone through numerous changes in response to national development strategies and the demands of the times. Korea was among the first countries to establish a deputy prime minister-level control tower for science and technology, only to later reverse this progress. While it may have seemed like a sign of the times back then, in retrospect, it is a regrettable chapter in history. The emergence of the Deputy Prime Minister for Science and Technology system, which demonstrated strong leadership but disappeared after just three years, is now seen as an example that highlights both the importance of a national science and technology control tower and the difficulties in operating it.

The report “Analysis of the History of Korea’s Science and Technology Administrative System,” published in 2021 by the Korea Institute of S&T Evaluation and Planning at the request of the Korean Association for Public Administration, closely traces these changes and offers important implications for future governance discussions.

According to the report, the status of science and technology policy reached its peak during the Roh Moo-hyun administration. At that time, the government set “building a science and technology-centered society” as a national goal, elevated the Minister of Science and Technology to the level of Deputy Prime Minister in 2004, and established the Vice-Ministerial-level Office for Science and Technology Innovation within the ministry, granting it practical control tower functions such as allocating and coordinating the national R&D budget and evaluating projects. The Deputy Prime Minister for Science and Technology also served as vice-chair of the National Science and Technology Council (NSTC), overseeing all science and technology-related policies, while the Innovation Office functioned as the NSTC’s secretariat. The report notes that the Deputy Prime Minister system at the time “was evaluated as having created conditions to implement policies from a position superior to that of the budget authorities.”

Oh Myung was appointed as the first Deputy Prime Minister for Science and Technology, succeeded by Kim Woo-sik. The appointment of Kim, who had served as Chief Presidential Secretary, was considered a bold move, further empowering the ministry.

At that time, the Deputy Prime Minister for Science and Technology held the primary authority to allocate the national R&D budget. The position also coordinated science and technology policies across related ministries and agencies, such as the Ministry of Information and Communication and the Ministry of Commerce, Industry and Energy. Instead of the Minister of Economy and Planning, the Deputy Prime Minister chaired the Ministerial Meeting on Science and Technology. By promoting “new growth engine projects,” the system established a cross-ministerial cooperation framework for promising future industries such as biotechnology, automobiles, and robotics. Internationally, Korea’s science and technology administrative system was recognized as a model case during this period.

However, this powerful control tower did not last long. With the launch of the Lee Myung-bak administration in 2008, a government reorganization abolished the Deputy Prime Minister for Science and Technology, and the Ministry of Science and Technology was merged with the Ministry of Education and Human Resources to form the Ministry of Education, Science and Technology. The core Office for Science and Technology Innovation was dismantled, and authority to adjust the R&D budget was returned to the Ministry of Strategy and Finance. The NSTC’s powers were also reduced, significantly weakening its influence over the science and technology budget compared to the previous administration. The report states that during this period, the scientific community openly raised concerns about the neglect of science and technology.

The Park Geun-hye administration launched the Ministry of Science, ICT and Future Planning, integrating existing science and technology and ICT policies, separating science and technology functions from the Ministry of Education, Science and Technology, and incorporating some functions of the Korea Communications Commission. However, the position was still not granted deputy prime ministerial status.

The Moon Jae-in administration renamed the ministry to the Ministry of Science and ICT and re-established the vice-ministerial-level Office for Science and Technology Innovation, strengthening its authority over the allocation and coordination of the R&D budget. The Yoon Suk-yeol administration did not change the science and technology administrative system inherited from the Moon administration, but it did bring about an unprecedented situation by cutting R&D funding.

The report concludes that with each change of administration, the science and technology administrative system has undergone repeated changes, resulting in instability and the loss of accumulated expertise. This highlights the need for long-term stable operation if the system is reorganized this time. To encourage a shift from a catch-up model to a leading model in science and technology R&D, it is essential to first stabilize the control tower.