Is Korea ready for AI revolution — or is it falling behind?

Chyung Eun-ju

By Chyung Eun-ju (By Chyung Eun-ju and Joel Cho)

• Published Apr 14, 2025 10:00 AM KST

Once a leader in the industry of memory chips, Samsung is now playing catch-up in the competitive field of AI-powered semiconductors. Meanwhile, top experts in Korea are leaving for better pay and opportunities abroad. In response, the Korean government is rolling out policies to keep AI researchers at home and attract global experts.

But is it enough? In the race for AI dominance, does Korea have what it takes to stay ahead — or is it at risk of falling behind?

Samsung Electronics Executive Chairman Lee Jae-yong recently warned executives that the company is facing an existential crisis in regard to AI. While Samsung remains a global dominant player in memory chips, it lags behind SK hynix in high-bandwidth memory (HBM), a critical component for AI models like ChatGPT. Meanwhile, Samsung’s smartphone, TV and DRAM market shares have declined, raising the stakes for its AI ambitions. If Samsung doesn’t catch up in AI, it risks falling behind not just in semiconductors, but in the broader tech landscape.

A Korean AI researcher currently working in the U.S., who preferred to stay anonymous, described the stark difference in compensation: despite not being among the highest earners in the field, they make around $700,000 (about 1 billion won) annually. In contrast, Korean universities that attempted to recruit them offered salaries under 100 million won, with strict publication requirements that added another layer of difficulty.

Similarly, a machine learning engineer shared that even without being a top performer, they earn around $500,000 abroad, while Korea’s leading companies extended offers of around 130 million won, with performance bonuses barely pushing it past 170 million. These figures highlight the significant pay gap that makes returning to Korea a tough choice for those national experts that have gone abroad.

Beyond salary concerns, many experts highlight systemic barriers in Korea’s AI ecosystem. One major complaint is the emphasis on research publications over real-world industry experience. While AI experts in the U.S. and Europe are valued for practical contributions to cutting-edge technology, Korean institutions often prioritize academic credentials in rigid ways, making it difficult for experienced professionals to transition back.

For young Korean men aspiring to work in AI, mandatory military service is another significant hurdle. While countries like the U.S. and China aggressively invest in AI skills, Korean men face a two-year career interruption. Some AI professionals have voiced concerns that Korea is actively discouraging its own experts from staying, rather than fostering an environment where they can grow.

The government is now considering reinstating AI-related military exemptions, similar to those previously granted to IT professionals in the early 2000s. However, critics argue that the exemption process is bureaucratic and inconsistent, making it an unreliable incentive.

While Korea struggles to keep its AI workers, it has one unique strength — its telecom giants. SKT, KT and LG Uplus are investing heavily in AI-powered 6G networks, aiming to integrate AI, quantum computing and satellite technology into next-generation communications. If Korea can lead in AI-driven telecom innovations, it could carve out a niche in the global AI competition. However, questions remain: Can AI innovation driven by telecom companies keep pace with OpenAI, Google and Meta? Or will Korea’s AI efforts be too narrowly focused?

France’s Mistral AI, a startup founded by former DeepMind and Meta engineers, skyrocketed to a $6.2 billion valuation in just six months. Korea is now looking to replicate this success, but experts warn that simply copying Mistral AI’s model isn’t enough. Unlike Korea, France has actively removed bureaucratic barriers for foreign workers, streamlined visa processes and provided substantial government support to AI startups. While Korea is exploring ways to improve its AI business environment, it faces challenges in matching France’s level of government backing, streamlined policies and research freedom that attract AI experts.

One solution being explored is easing visa restrictions and creating more AI-friendly business environments. However, as one researcher pointed out, it’s not just about visas — it’s about whether Korea can provide the funding, corporate culture and research freedom that top AI workers expect. Without addressing these broader factors, Korea risks falling short in attracting and retaining their local workers in the field of AI.

Considering the dissatisfaction voiced by professionals who have left the country for better opportunities abroad, it is essential that major players in Korea’s AI sector establish and maintain structures that not only allow but actively incentivize research and development. This means increasing salaries and offering competitive incentives beyond national pride, reducing bureaucratic hurdles that prioritize publications over industry experience and ensuring that AI-related military exemptions are more transparent and accessible. Additionally, Korea must strengthen its startup ecosystem by providing better funding and legal support, allowing local AI companies to scale globally. Lastly, corporate strategies must evolve so that AI engineers are not forced into managerial roles but are given opportunities to thrive as high-paid specialists.

As AI continues to shape the future of industries, Korea faces an important choice: it can either adjust to attract and retain AI experts, or risk losing its brightest minds to overseas opportunities. The solution isn’t just policy-driven — it’s about fundamentally rethinking how Korea values and nurtures its AI professionals.

Chyung Eun-ju (ejchyung@snu.ac.kr) is a tech research associate at Donghyun ASP. She earned both her bachelor's in business and master's in marketing from Seoul National University. Joel Cho (joelywcho@gmail.com) is a practicing lawyer specializing in IP and digital law.