[New Wave] Conditions for a 'Growth Strategy' in the Era of Economic Security

China's Huawei, which suffered under the United States' intense sanctions, saw its sales plummet by 30% last year, while Japan, after its 2019 export restrictions on South Korea failed to achieve the desired effect, is preparing even stronger measures. China, a competitor in electric vehicles and batteries, has recently driven the prices of essential minerals for batteries such as lithium, nickel, and cobalt to record highs, negatively impacting related industries. However, when the U.S. sanctioned China and Japan imposed semiconductor material export restrictions on South Korea, both countries based their attacks on information gathering and analysis of the target industries, companies, products, technologies, and supply chains of the opposing side.

South Korea, ranked 8th in the world in trade volume, 5th in innovation index, and 4th in patent applications, is constantly threatened by the leakage of core technologies and skilled personnel from competing countries. As South Korea has joined the ranks of advanced nations, its growth and leadership hinge on 'core technologies,' and now 'industrial economic security' has become an indispensable element for future growth. So, how should growth strategies be pursued in the era of industrial economic security? An old saying goes, 'Know thy enemy and know thyself, and you will never be defeated in a hundred battles.' Similarly, in the era of technological hegemony, if one can understand the situation and true intentions of the opponent, precise strategies can be employed.

First, we must thoroughly reflect on whether we possess the level of intelligence held by countries like the U.S., Japan, and Germany. In particular, efforts should be made to secure 'strategic hidden technologies' that even major powers do not have. For example, if China tightens restrictions on semiconductor materials, it would be a direct blow to us, but at the same time, it would also burden China, the largest consumer of memory. Hidden technologies are South Korea's survival strategy given its high dependence on foreign intermediate goods and can serve as a bargaining chip.

Next, it is essential to create a global technology information map for future growth sectors such as artificial intelligence, semiconductors, biotechnology, and quantum computing. Approximately 3 million patents are filed worldwide each year, and since advanced technologies are mostly protected by patents, patents represent excellent publicly available technical information. There is no better information for preparing industrial economic security strategies.

However, we currently only use this information for patent examination or limited corporate analysis. From the perspective of national economic security, if we can derive the core technologies, researchers, and industrial landscapes of competing countries and combine this with information gathered overseas by the National Intelligence Service, Ministry of Foreign Affairs, and Ministry of Trade, Industry and Energy, it would provide a solid foundation for formulating industrial economic security strategies and enable us to develop competitive strategies as a global leader.

Practically, a think tank that can analyze collected information to produce a so-called 'industrial economic security world map' and propose methodologies and countermeasures for economic security strategies based on it is very important. While institutions conducting such research exist in the fields of intellectual property and industrial trade, they are severely lacking in organization, budget, and personnel. More problematic is the insufficient awareness and legal basis regarding economic security.

To respond to the rapidly changing economic security environment and protect core technologies, supply chains, and industries from various industrial threats, thereby securing the competitiveness of the nation and companies, it is urgent to establish a strong and efficient industrial economic security strategy along with a reorganization of think tanks and administrative systems capable of implementing it. Above all, a governance system must be established that can approach and coordinate these strategies across ministries to ensure effectiveness. When focused efforts are made on hidden technology research and development (R&D), supply, and diplomatic intelligence strategies based on a unified national plan, South Korea will be able to gain an advantage in the challenging global hegemony competition.

Seungwoo Son, President of the Korea Intellectual Property Research Institute

This content was produced with the assistance of AI translation services.