[THE VIEW]Attracting IT Talent: The Answer Lies in the Market

Singapore and China Pursue Long-Term Strategies, While Korea Focuses on Showcasing
Sustained Compensation and Settlement Support, Not One-Off Measures, Are Key

Recently, the South Korean government launched an initiative to secure talent under the policy of making artificial intelligence (AI) a key growth engine. The government announced a plan to invest 1.4 trillion won in three main areas: training, attracting, and retaining IT and AI talent, with the goal of securing 33,000 skilled workers in cutting-edge fields. Specifically, the "Brain to Korea" project aims to attract 640 individuals next year and 2,000 over the next five years. It is encouraging that the government has recognized the severity of talent outflow and is taking concrete action. However, a critical perspective is still missing from government policy: talent should not be seen as a resource to be "allocated" by administration, but as economic agents who make their own decisions based on conditions.

The outflow of talent from South Korea has already reached a serious level. Various indicators show a clear tendency for highly capable individuals to choose larger stages. According to 2024 data from SGI, under the Korea Chamber of Commerce and Industry, the net migration of talent per 10,000 people was -0.36, meaning more people are leaving than entering. Therefore, it is necessary to clarify how many and which individuals to attract, design policies more meticulously, and devote more resources and policy efforts to preventing outflow and encouraging return.

Among potential targets, Koreans themselves are the most accessible and feasible group. While attracting foreign talent must also be pursued, focusing on "Return Koreans"-those who understand Korean society and are more likely to invest their energy in Korea-offers a higher cost-effectiveness. Many countries already provide various policy incentives to attract returning talent.

Singapore, which ranks first in the Asia AI Readiness Index, is a prime example. When Singaporeans living abroad return home, they can participate in overseas postdoctoral programs with government support and receive a repatriation package that includes research funding and airfare on the condition of returning. If family members return together, children's admission to public schools is supported through a separate process, making it easier for both work and family to settle.

The talent market is ultimately a "market." Countries fiercely compete to attract talent by presenting more attractive banners. Gemini generated image

China is no exception. As seen in the case of DeepSeek, which disrupted the AI landscape, China has pursued aggressive talent attraction policies such as the "Thousand Talents Plan" since the late 2010s. Since 2020, China has provided settlement funds to returning talent and lowered residency and employment barriers through expedited visas. When AI talent who have completed postdoctoral programs at prestigious overseas universities or gained industry experience abroad return to China, the government provides research funding to help them quickly establish projects and research teams, and ensures their connections to overseas networks remain intact. This approach is based on the calculation that the external effects brought by a single returning talent-such as co-authorship, patent applications, and the potential influx of industrial partners-are far greater.

In contrast, the AI Challenge and short-term project-based support currently promoted by the Ministry of Science and ICT in South Korea tend to be one-off policies that serve mainly as showcases. What is needed is a system for evaluating longer-term outcomes and a compensation structure that guarantees talent the time needed to deliver results. Rather than judging success based on short-term achievements like patent filings or technology development, performance should be assessed over a minimum window of five years.

The success or failure of talent attraction ultimately depends on solid compensation. As reports of Meta offering massive signing bonuses show, global big tech companies aggressively invest in top-tier talent. Of course, money cannot solve everything, but without sufficient compensation, nothing can even begin. Therefore, a flexible design that combines competitive cash rewards and stock options with non-monetary assets such as support for long-term projects and opportunities to leverage networks is essential.

The ripple effect of a single talented individual is never simple. It leads to the cultivation of further talent, the securing of high-quality international networks, and achievements in patents and technology development, all of which directly impact national competitiveness. Thus, support for talent acquisition should be seen not as short-term spending but as a long-term investment. The conclusion is clear: the talent market is also a "market." Rather than trying to suppress the market, policies need to be designed with precision to influence the choices of market participants. Policy improvements must continue to integrate inflow, outflow prevention, return, and settlement into a single system so that Korea can become a hub for talent.

Kyung Nakyung, Professor of Computer Science, National University of Singapore