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Overcoming crisis through science and technology

Published: 25 Feb. 2025, 00:02

Chang Joon-yeon

The author is the vice president of the Korea Institute of Science and Technology (KIST).

If we were to pinpoint the greatest crisis Korea has faced since its industrialization, the 1997 IMF financial crisis would undoubtedly top the list. Many still recall the nationwide gold collection campaign, but what stands out most in my memory is the government’s “Now, it’s time for science and technology” campaign.

Amid the turmoil of national bankruptcy, Korea focused its efforts on scientific and technological innovation. As a result, the country repaid the IMF bailout loans ahead of schedule and successfully transformed its industrial structure, bolstering industries such as semiconductors, information and communication technology (ICT), automobiles, shipbuilding and petrochemicals. This transformation propelled Korea into the ranks of the world’s top 10 economies.

Members of the Korea YMCA Federation collect foreign currency as part of a nationwide campaign created in response to the IMF crisis on Nov. 24, 1997 in Myeong-dong, central Seoul. [JOONGANG ILBO]

Now, we stand at another critical juncture. Externally, the reemergence of the Trump administration, the intensifying U.S.-China power struggle and the escalating global tariff war are placing immense pressure on Korea’s export-driven economy. Moreover, the Inflation Reduction Act (IRA) is being scaled back, further complicating Korea’s trade outlook.

On the geopolitical front, the Ukraine war and North Korea’s nuclear missile threats have heightened national security risks. Domestically, martial law and the impeachment crisis have paralyzed the government, making it difficult to respond proactively to global shifts. The economy, already grappling with slowing growth and a rapidly aging population, faces an uncertain future.

The most pressing issue, however, is the fierce global competition for technological supremacy, primarily between the United States and China. In an era where technological leadership determines national survival, major powers are ramping up state-level support for strategic technologies. The United States recently announced the development of a quantum computer powered by Google’s high-performance Willow chip, marking the dawn of the quantum technology era. With limitless applications, quantum technology is expected to revolutionize multiple high-tech industries.

A roundtable to collect insights on advancing domestic AI industry took place at the office of the National Artificial Intelligence Committee in central Seoul on Feb. 6 following the release of Chinese startup DeepSeek's latest reasoning model. Korean experts called for the establishment of a special task force to deliver “unprecedented” government support to designated AI companies. [NEWS1]

China, despite mounting pressure from Western nations led by America, has made significant strides in AI, unveiling the DeepSeek chatbot. This development has shocked the global AI industry, demonstrating how optimized technology and infrastructure can drive innovation, even under constraints.

In contrast, Korea’s science and technology sector has struggled following the government’s research and development (R&D) budget cuts last year. Adding to these challenges, the political turmoil has sidelined crucial science and technology policies. Key legislation aimed at fostering future industries and securing technological sovereignty remains stalled in the National Assembly.

Within the research community, concerns are growing over the sustainability of current policies. The nation desperately needs a breakthrough to navigate this crisis. If innovation continues to stagnate, the technological gap between Korea and its major competitors could become irreparable.

In times of national crisis, science and technology must lead the way. Innovation is essential for industrial advancement and the creation of new markets. Investments in R&D, infrastructure and talent development are not just a means of economic recovery — they are the fastest path to strengthening national competitiveness.

Moreover, science and technology serve as a powerful unifying force, fostering bipartisan cooperation. The United States demonstrated this in 2008, when both political parties collaborated on large-scale R&D investments to recover from the global financial crisis.

Korea also prioritized science and technology innovation in its efforts to overcome the IMF crisis 30 years ago. The government and the National Assembly worked together to elevate the Ministry of Science and Technology, establish the National Science and Technology Council and enact the Basic Science and Technology Act, laying the foundation for long-term science and technology policies. For the first time, R&D funding surpassed 4 percent of the national budget, helping to drive national growth and development.

Looking back at these past successes, we cannot afford to let the clock on innovation stop. Science and technology are fundamental to national survival and prosperity, and Korea must ensure consistent support for scientific research through national cooperation.

To achieve this, policy and institutional reforms must follow. Investments in national strategic technologies and a transition to a mission-driven R&D system should be pursued with a long-term perspective and unwavering commitment.

Perhaps now is the time to reignite the spirit of the past — to once again unite under the slogan: “The future still belongs to science and technology.”

Translated using generative AI and edited by Korea JoongAng Daily staff.