Proposals for Reform to Strengthen Global Competitiveness
Jarvis & Villains announced on October 29 that it has released the report, "Innovative Strategies for the AI Startup Ecosystem: Focusing on Investment, Talent, and Regulatory Systems," co-authored by its affiliated policy think tank, Samzzam Research Lab, and the Startup Growth Research Institute. The company emphasized that bold institutional reforms are necessary to strengthen global competitiveness.
The report analyzes that, although Korea possesses outstanding AI research capabilities and a high level of technology adoption, rigid institutional and regulatory systems are hindering the pace of innovation for AI startups and making sustained growth difficult. It warns that this could weaken Korea's position in the global AI competition.
According to Tortoise Media in the United Kingdom, which publishes the annual "Global AI Index," Korea is recognized as having the fifth or sixth highest technological capability in the world, but its private sector AI investment ranks only 18th. The cumulative investment over the past decade, from 2013 to 2022, was 8 trillion won (5.57 billion dollars), which is just 2.2% and 5.9% of the levels seen in the United States and China, respectively-countries that have established a duopoly in AI.
Samzzam Research Lab announces report on 'Innovative Strategies for AI Startup Ecosystem'. Jarvis and Villains
The report diagnoses these issues as a "regulatory time lag" and presents proposals for improving the regulatory system in line with the pace of technological change, along with considerations for feasibility.
First, it highlights the need for an "AI regulatory control tower." The report suggests that regulatory authority, currently dispersed across ministries and subject to varying interpretations, should be unified under a single cross-ministerial body that serves as a one-stop shop for permits and reviews. This is expected to minimize delays in launching "convergent AI services," which are subject to heavy industry-specific regulations, and to help ensure regulatory consistency. In particular, it calls for a shift to negative regulation in three strategic sectors: healthcare, robotics, and fintech.
The report also urges the establishment of a dedicated "sandbox fast track" for AI startups. In addition, it recommends creating a "scale-up fund" with participation from both the government and the private sector, and diversifying exit strategies beyond the IPO-centered structure to establish a virtuous funding cycle. The report also points out the need to introduce an S-Startup visa to attract global talent.
Chae Ibae, Director of Samzzam Research Lab, stated, "This study presents actionable policies in three areas: capital, talent, and regulation. I hope the government will seriously review and adopt these recommendations."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
