[Insight & Opinion] On the Eve of a New Industrial Revolution: Korea's Path in the Age of AI and Virtual Assets

At the dawn of the modern era, Asia possessed technological and economic capabilities that were by no means inferior to those of Europe. However, while Europe boldly embarked on the Age of Exploration, venturing into the New World and pioneering maritime routes, and while it prepared for the Industrial Revolution by combining capital and science, Asian countries remained preoccupied with religion, traditional order, and internal politics. As Yuval Harari discusses in his book "Sapiens," the progress of civilization stems from "curiosity and the willingness to challenge the unknown." At that critical juncture, Asia paid a heavy price for settling for the status quo and turning away from new opportunities. The gap with the West widened to an irreversible extent, and Asia was relegated to the periphery of the global order for a long time.

The reality facing Korea today brings this historical lesson back into sharp focus. Artificial intelligence and the virtual asset market are no longer just new technologies; they have become the main arenas where global economic hegemony is determined. The United States has elevated AI competitiveness and virtual assets such as stablecoins to the level of national strategy, pouring in massive capital. The European Union is striving to standardize the industry through the MiCA regulatory framework, and Singapore has established itself as a digital financial hub attracting startups and investors from around the world.

In contrast, Korea continues to view virtual assets primarily through the lens of speculation, prohibits institutional investment by corporations and other entities, and predominantly regards AI and blockchain technologies as subjects for consumer protection-oriented regulation. Korea is also the only country attempting to regulate virtual asset exchanges under fair trade frameworks. As a result, Korea now faces the risk of an irrecoverable gap in global competition.

Solving this issue will not be easy. Deep-rooted structural problems, such as widespread national and individual indifference toward nurturing scientific and technological talent, persist. The phenomenon of young talent flocking to medical schools undermines the foundation of innovation competitiveness. The broader social atmosphere, which prioritizes stable paths and shuns creative risk-taking, mirrors the attitude of the Joseon Dynasty’s elite, who neglected maritime expansion and commerce in favor of the civil service examination system.

Success in the global AI and virtual asset markets hinges on creative problem-solving, sophisticated algorithm development, large-scale data utilization, and the continuous accumulation of technology. However, Korea currently suffers from a structural imbalance: excessive competition in the medical field and a shortage of talent in science and engineering. As a result, economic players seem trapped in a zero-sum game, and a stagnant future only intensifies conflict amid unnecessary competition. Individuals find it difficult to recognize these misguided trends in the flow of the times, and even when they do, breaking free from them is never easy.

A transformation is therefore needed. First, national-level investment in core AI and blockchain technologies must be increased, and an open ecosystem involving diverse stakeholders should be established. Clear and innovation-friendly regulatory frameworks for the virtual asset industry must also be put in place. In addition, social rewards and support for relevant talent should be significantly strengthened. Bold research support and startup incentives should be provided, and an environment must be created where people can pursue challenging technology startups and research. Of course, not everyone will succeed. However, when the community shares and compensates for the risks of failure, more people can take on challenges without fear. Innovation is difficult to achieve in a society without a safety net. When there are social systems that embrace failure, creative attempts become more active, and the drive to take on the future gains momentum.

As Yuval Harari emphasized, the progress of humanity begins with "the courage to imagine new worlds and to take risks." The moment we become satisfied with what we know and settle for comfort, regression begins. If Korea focuses solely on stability and maintaining the existing order, it may miss the great waves of history, just as Asia did on the eve of the Industrial Revolution. The history of humanity favors those who take action, and opportunity does not wait.

Kim Kyuil, Professor at Michigan State University