Why Korean STEM talent continues to move abroad

This illustration represents top STEM talent from Korea moving abroad in search of better research environments and career opportunities. Korea Times file

The importance of STEM talent continues to grow, as it drives a country's sustainable economic growth by fostering innovation and increasing productivity.

However, according to research from the Bank of Korea (BOK) released Monday, many top talents in Korea tend to move abroad in search of better research environments and career opportunities — unless they have already chosen to attend medical school after high school.

While Korea's science, technology, engineering and mathematics workforces have steadily expanded in size over the past several decades, the central bank noted that structural constraints within the country have hindered them from fully realizing their potential.

As of 2022, Korea's research and development workforce reached approximately 170 researchers per 10,000 people — one of the highest ratios among major countries.

"Satisfaction with job conditions and treatment among STEM professionals in Korea remains relatively low. Moreover, the ecosystem and investment base for technology startups — where such talent could expect higher economic rewards — are still underdeveloped," the report stated.

"Consequently, students with strong scientific aptitude increasingly avoid science and engineering fields in favor of medical schools when choosing their academic and career paths. Even those who do pursue these fields often move abroad due to the constraints of Korea's domestic research and employment environment," it added.

The United States has attracted the most Korean talent. The number of Korean Ph.D. holders in STEM fields there has doubled — from 9,000 in 2010 to 18,000 in 2021. Net outflows have also increased since 2015, particularly in the bio and information and communication technology sectors.

The trend shows no signs of slowing.

In a BOK survey of 2,700 STEM professionals in Korea and abroad, 42.9 percent of respondents working in Korea said they were considering moving overseas within the next three years. Among those in their 20s and 30s, the proportion rose to as high as 70 percent.

The primary motivation for considering relocation was financial, with 66.7 percent of respondents citing monetary reasons. More than half of those working in Korea reported being dissatisfied with their salaries, compared to fewer than 20 percent of professionals working abroad.

Other factors also played a significant role. About 61.1 percent pointed to the better research environment and networks, while 48.8 percent cited career development opportunities.

"While such decisions may be rational from an individual standpoint, they result in the loss of highly skilled talent at the national level, which could erode Korea's scientific and technological competitiveness and constrain its long-term growth potential," the report noted.

The central bank recommended reforming compensation systems to better attract and retain top talent, and improving the effectiveness of research and development investments. Expanding the ecosystem through support for technology startups and greater openness in strategic technologies was also emphasized.

"Korean companies need to move away from uniform, seniority-based compensation structures and strengthen flexible reward systems that provide promotions and financial incentives commensurate with outstanding performance," the report said. "It is also important to create career paths and research environments that enable young researchers to pursue long-term growth (within Korea)."