Lee Han-joo Declares Talent Acquisition as Lee Jae-myung Government's Top Priority Amid Korea's Brain Drain Crisis

Korea's Talent Crisis Becomes Government's Top Priority

The Lee Jae-myung administration has identified talent acquisition as its most critical national task, according to Lee Han-joo, Chairman of the Presidential National Policy Planning Committee. Speaking at a forum on talent development, attraction, and retention prevention held at the Government Seoul Office on June 17, Lee emphasized that securing human resources has become the government's de facto first national agenda.

This declaration comes amid growing concerns about Korea's accelerating brain drain, particularly in high-tech sectors like artificial intelligence and biotechnology. The urgency of this issue was underscored when President Lee Jae-myung instructed Prime Minister Kim Min-seok on June 7 to develop comprehensive measures to prevent domestic talent outflow and secure top-tier professionals in AI and bio sectors.

The forum, organized by the National Policy Planning Committee that launched on June 14 with a two-month mandate to establish new government policies, brought together representatives from major corporations including SK Hynix, Hyundai Motor, and Kearney Korea, alongside officials from various government ministries including the Ministry of Trade, Industry and Energy, Ministry of Employment and Labor, Ministry of Justice, Ministry of Education, and Ministry of Science and ICT.

Alarming Statistics Reveal Scale of Academic Exodus

Recent data from the Ministry of Education and Ministry of Science and ICT paint a concerning picture of Korea's talent hemorrhage. Between 2021 and May 2025, Seoul National University alone lost 56 professors to overseas institutions, with 41 moving to the United States and 15 relocating to Hong Kong, Singapore, Japan, Australia, and China. The exodus spans across disciplines, including 28 in humanities and social sciences, 12 in natural sciences, 12 in engineering, three in arts and physical education, and one in medicine.

The four major science and technology institutes, including the Korea Advanced Institute of Science and Technology (KAIST), Daegu Gyeongbuk Institute of Science and Technology (DGIST), Gwangju Institute of Science and Technology (GIST), and Ulsan Institute of Science and Technology (UNIST), also experienced significant losses, with 18 faculty members moving to overseas universities during the same period.

This trend represents a dramatic shift from two decades ago when university professor positions were considered among the most desirable careers in Korea, offering job security, social respect, and attractive benefits including pension plans and academic breaks.

AI Talent Drain Reaches Critical Levels

Korea's artificial intelligence sector is experiencing particularly severe talent losses, ranking among the worst globally for AI brain drain. According to Stanford University's AI Index 2024, South Korea recorded a net outflow of -0.30 AI talented people per 100,000, contrasting sharply with countries like the United States, United Kingdom, and Canada where AI talent flows are net positive. More recent data shows the situation has worsened, with Korea recording a net loss of 0.36 AI experts per 10,000 people in 2024, placing it 35th out of 38 OECD member countries.

This represents a complete reversal from 2020, when Korea recorded a modest net gain of AI professionals. The intensification of talent outflow coincides with the global AI boom triggered by generative AI technologies, highlighting Korea's inability to retain the very talent it has successfully trained.

Chairman Lee Han-joo specifically addressed regional talent concentration issues, noting that Chonnam National University, designated as an AI-specialized institution, attracts many AI students but sees most graduates migrate to Seoul or overseas, leaving Gwangju's AI industry struggling with talent shortages.

Economic and Structural Factors Behind the Exodus

The root causes of Korea's talent drain lie in significant compensation gaps and limited research opportunities compared to global competitors. Industry experts point to Korean companies' inability to offer competitive packages compared to international tech giants. While companies like Naver, Kakao, major gaming firms, and telecommunications companies can compete for talent, most Korean enterprises struggle to match the expectations of advanced AI professionals.

Samsung Electronics exemplifies this challenge by maintaining different compensation packages for identical positions domestically versus internationally, acknowledging the need for higher compensation levels abroad to attract talent. The financial disparity is stark: over the past decade, U.S. companies raised $335.2 billion through private equity and venture capital compared to Korea's $7.2 billion—a 46-fold difference that widened in recent years.

Korean universities face additional challenges including years of tuition freezes that have tightened financial constraints, lack of systems for counteroffers or performance bonuses, and an oversupply of Ph.D. graduates that has kept institutions passive in hiring. Foreign universities, meanwhile, aggressively recruit Korean academics with generous salaries, research grants, and housing subsidies.

Government's Multi-Pronged Response Strategy

The Lee Jae-myung administration has outlined an ambitious three-pillar approach to address the talent crisis. The strategy focuses on expanding investment in AI infrastructure and R&D, establishing comprehensive regulatory frameworks through legal and institutional reforms, and nurturing AI talent with emphasis on practical, industry-based applications.

Specific initiatives include investing 100 trillion won in the AI industry, creating a national AI data integration cluster, securing more than 50,000 GPUs, and developing neural network processing units. The government also plans to establish AI colleges at regional universities, strengthen STEM education, and expand special military service opportunities for AI talent.

However, implementation faces significant challenges. A recent audit by the Board of Audit and Inspection revealed major flaws in the government's semiconductor talent training plan, projecting a shortfall of at least 50,000 workers by 2031 despite the K-Semiconductor Strategy announced in 2022. The audit found that basic planning assumptions were flawed, with demand projections excluding variables such as retirements and workforce attrition.

Regional Disparities and Long-term Implications

Chairman Lee highlighted concerning regional concentration patterns that exacerbate the talent crisis. Despite government efforts to distribute AI education opportunities across the country, graduates consistently migrate to Seoul or overseas, creating talent deserts in regional areas. This pattern threatens to undermine Korea's growth potential by concentrating human resources in limited geographic areas while leaving other regions struggling with shortages.

The demographic challenge adds urgency to the situation. With Korea facing the world's lowest birth rate, Chairman Lee emphasized that talent represents the nation's almost singular solution to demographic decline. He stressed the need to efficiently and sustainably utilize existing human resources while preventing further outflows.

The implications extend beyond individual sectors to Korea's overall competitiveness in the global technology race. As Lee noted, talent development has stagnated while outflows accelerate, potentially positioning Korea permanently as a country that nurtures talent only to lose it to global AI powerhouses. This could fundamentally undermine the nation's aspirations to become a leading AI power and maintain its position in the global innovation economy.

Looking Forward: Systemic Changes Required

The scale and complexity of Korea's talent crisis demands fundamental systemic changes beyond traditional policy approaches. Industry observers suggest that startups are already adapting through strategies like headquarters relocation or flips, establishing companies in Korea but moving headquarters to the United States to enhance investment and talent acquisition appeal.

Academic institutions must also evolve their approaches to faculty retention and development. Seoul National University's AI Research Institute Director Jang Byung-tak emphasized the need for alternatives such as fostering excellent research teams, given the inability to immediately match the financial resources of global tech giants.

The National Policy Planning Committee's recognition of talent acquisition as the government's primary task signals a potential shift toward more comprehensive and coordinated approaches. However, success will require sustained commitment, adequate funding, and innovative solutions that address both immediate retention needs and long-term competitiveness in the global talent market. The committee's current deliberations on how to reflect this recognition in national planning will be crucial for Korea's future as a technology-driven economy.