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Audit finds gaps in Korea’s semiconductor talent plan

Published: 02 Jul. 2025, 00:00

SK hynix 's booth during an exhibition held in Seoul [YONHAP]

The Korean government’s plan to train talent for the semiconductor industry and other advanced sectors is facing criticism after an audit revealed major flaws in forecasting and policy execution. A report released Monday by the Board of Audit and Inspection (BAI) concluded that by 2031, Korea will fall at least 50,000 workers short of its goal for semiconductor workforce development. If recent increases in labor demand are factored in, the shortfall could reach 81,000.

The government’s miscalculations stem from underestimating future workforce needs and funding programs that did not generate new talent. In 2022, the government announced its “K-Semiconductor Strategy,” which aimed to cultivate 151,000 professionals over ten years as part of a broader push to strengthen Korea’s position in the global semiconductor race. It was described as a key national strategy to secure the country’s future.

But the audit found that basic planning assumptions were flawed from the outset. The Ministry of Trade, Industry and Energy projected demand based only on expected industrial growth, excluding variables such as retirements and workforce attrition. Actual demand was 181,000 over 10 years, significantly higher than the ministry’s estimate. Meanwhile, the Ministry of Education allocated funding to retraining programs for existing company employees, which had little impact on expanding the talent pool. As a result, only 101,000 new workers are expected to be produced — 50,000 short of the original target.

The BAI has urged related ministries to revise their workforce forecasting models and improve supply-side measures. While government commitment to semiconductor workforce development is important, the audit revealed the limitations of top-down planning, particularly when policies are driven by appearances rather than grounded in industry needs.

Cultivating talent for semiconductors and other strategic industries cannot be achieved simply through increased budgets or policy declarations. What is needed is a supportive ecosystem that encourages talent to stay. This includes creating stable, long-term research environments, providing competitive compensation, and building the infrastructure necessary to attract and retain global talent.

Samsung Electronics began operations at its third semiconductor production line (P3) at the Pyeongtaek Campus in September 2022. The photo shows the production facilities at the Pyeongtaek Campus. [SAMSUNG ELECTRONICS]

Private companies must also play a more active role. Only when firms can profit from R&D investment can they offer exceptional compensation to top engineers. To support this, the government should ease regulatory burdens, reform rigid labor policies such as the 52-hour workweek, and allow for more flexible wage structures.

If Korea fails to develop or retain talent in semiconductor and other high-tech sectors, its technological sovereignty — and its future — could be at risk.

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