[Insight & Opinion] What It Takes to Become One of the "Top Three AI Powerhouses"

The Vicious Cycle of Repeated Failures in AI Development Policy
Lack of Private Investment Deepens Gap with Leading Nations
A Complete Overhaul of the Science Innovation Ecosystem Is Needed

The Lee Jaemyung administration has set forth a vision of becoming one of the "top three AI powerhouses," demonstrating strong determination for AI advancement by establishing a new position of Chief of AI and elevating the Minister of Science and ICT to Deputy Prime Minister, thereby assigning them the highest responsibility for fostering the artificial intelligence (AI) industry. There is no doubt that the AI industry, as a general-purpose technology (GPT) that leads technological innovation in all other industries during the 21st-century technological revolution, is the most important and rapidly growing sector, and thus holds critical importance as a key industry that will determine the nation’s future competitiveness.

In particular, the vision of becoming one of the "top three AI powerhouses" is significant in that it offers a national vision of hope for reversal to citizens disheartened by the economic growth rate dropping to the 0% range. However, in retrospect, AI development policies pursued by previous administrations have been typical failures.

The government already announced the "National Strategy for Artificial Intelligence" in 2019 and the "Comprehensive Plan for Digital Talent Development" in 2022. Nevertheless, according to statistics from the Organisation for Economic Co-operation and Development (OECD), in 2023, Korea was ranked 35th out of 38 OECD countries in terms of attracting AI talent, making it a net exporter of AI professionals. Can the Lee Jaemyung administration break the cycle of repeated AI policy failures?

From 2013 to 2024, Korea ranked ninth globally in terms of private investment in the AI industry, with its investment amounting to only 1.9% of that of the United States, which ranks first. This makes the dream of being one of the "top three AI powerhouses" seem far off. Meanwhile, according to a recent survey, as of 2024, the number of AI researchers stands at 64,000 in the United States (31% of the global total), followed by China with 53,000 (26%), and the European Union (EU) with 18%. Notably, China increased its number of AI experts more than fivefold, from 10,000 in 2015 to over 53,000 in 2024. China’s success in nurturing talent is the result of sustained massive investment in AI as a core industry under the "Made in China 2025" initiative, which began in 2015.

What is particularly noteworthy is that the Chinese government devoted significant efforts not only to fostering domestic talent but also to attracting talent from around the world and supporting their research. Furthermore, it is important to note that "Made in China 2025" was not the policy of a single ministry, but a national development strategy pursued with the concerted efforts of all government ministries.

According to the Nature Index, the number of Chinese institutions among the world’s top 100 research organizations grew from nine in 2014 to 43 in 2024. The emergence of the AI startup "DeepSeek," which surprised the world in January this year, can be seen as a symbolic achievement of China’s evolving scientific ecosystem. In contrast, Korea remained at just two institutions over the past decade. This remarkable gap is because, over the past ten years, the Chinese government has pursued scientific and technological advancement through "Made in China 2025," while the Korean government, from the tuition freeze under the Lee Myungbak administration in 2009 to the 10% cut in R&D budgets and the increase in medical school admissions under the Yoon Sukyeol administration, has devastated the scientific innovation ecosystem.

Therefore, in order for the Lee Jaemyung administration to break the cycle of repeated failures of previous governments, it is imperative to pursue a comprehensive approach that fundamentally reforms the accumulated structural problems of the scientific innovation ecosystem beyond just AI. This must be implemented not as a policy of the Ministry of Science and ICT alone, but as a national policy with the concerted efforts of all government ministries.

The vision of becoming one of the "top three AI powerhouses" risks exacerbating structural problems by focusing excessively on AI to the detriment of other research fields, thereby repeating the failures of previous administrations. On the other hand, if the Lee Jaemyung administration succeeds in reforming the overall innovation ecosystem of science and technology, Korea’s science and technology sector can look forward to a new era of advancement.

Kim Dongwon, former visiting professor at Korea University