Regulatory hurdles in private sector may hinder Korea's AI growth
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Korea has lagged behind other developed countries in private sector investments into artificial intelligence (AI) technologies, due to its strict regulations hindering companies' access to data, a recent analysis by the Federation of Korean Industries (FKI) showed Thursday.
The business lobby also pointed out the country’s shortage of data scientists and engineers, which has caused concerns among industry insiders that the government’s plan to slash next year’s budget for AI research may prompt more experts to leave the country.
According to the Global AI Index announced in June by British data analysis firm Tortoise Intelligence, Korea ranked sixth in overall AI competitiveness, following the U.S., China, Singapore, the U.K. and Canada.
The FKI attributed its ranking to the fact that the country has obtained the third-largest number of AI-related patents, following the U.S. and China. In particular, the number of patents on hyperscale AI Samsung applied for between 2011 and 2020 was larger than those of IBM, Google and Baidu.
Second Vice Minister of Science and ICT Park Yun-kyu also told foreign correspondents in Seoul last Friday that he is optimistic about Korean AI companies’ competitiveness in the global market, because they will have competitiveness in non-native English-speaking countries and in professional fields.
However, Korea was only placed 18th by Tortoise Intelligence in terms of private sector AI investments. The country’s ranking stood at 20th in the number of data scientists and engineers.
The science ministry’s survey also showed that Korea needed 7,481 more AI experts last year. The number jumped from 3,726 in 2021 and 1,609 in 2020.
“Korea should address the shortage of experts by nurturing local experts and hiring highly educated experts from overseas through eased visa rules,” said Choo Kwang-ho, head of FKI's economic research division. “The high barrier to using data has also weighed on AI companies, so Korea should boost private sector investments by reforming the Personal Information Protection Act and the Credit Information Use and Protection Act.”
President Yoon Suk Yeol listens to an explanation about hyperscale artificial intelligence (AI) developed by a Korean company, before a meeting on AI policies at Cheong Wa Dae in Seoul in this Sept. 13 file photo. Courtesy of presidential office
Rep. Yang Hyang-ja of the minor opposition Hope of Korea, who previously worked as a Samsung Electronics executive, also pointed out Korea’s shortage of AI experts during a parliamentary audit, Tuesday, urging the government to establish a “grand plan” for fostering the country’s AI sector.
“The Yoon Suk Yeol administration will cut next year’s budget for AI-related R&D by 43 percent,” the lawmaker said, expressing concerns over the possibility of an additional brain drain in the nation’s AI industry.
Ha Jung-woo, head of Naver Cloud AI Innovation Center, who appeared at the audit as a witness, also testified that he worries the budget cuts may discourage future generations of researchers and students.
“It is important for the government to provide opportunities for the AI industry’s growth, instead of imposing regulations,” he said.