[Interview] Koo Ja-kyun: "R&D Is an Investment in the Future, Not a Cost... Leadership Must Embrace Failure"

[The Heart of Innovation: Corporate Research Institutes ⑤]
Interview with Koo Jakyun, Chairman of the Korea Industrial Technology Association and LS Electric
"In times of great uncertainty, technology is the only path for corporate growth"
"A National Innovation Talent Headquarters is needed as a control tower for talent acquisition"
"Leadership from management is essential"
"The government must provide bold tax incentives for corporate R&D"
"Pride among technology professionals must be fostered"

Editor's NoteThere is a growing call for a new driving force to revitalize the Korean economy, as its engines of growth are faltering. Corporate research institutes, once the heart of the Korean economy, have lost the public’s attention. Few now pay heed to what these institutes are focusing on. IBM, the dominant force in the US IT industry, overcame its “lost decade” and staged a turnaround. At the core of this revival was the rebuilding of its research institute. Founders of Korea’s leading conglomerates once unanimously championed the idea of “building the nation through technology.” Now, voices in the industry argue that the spirit of these founders must be revisited and that a uniquely Korean research and development (R&D) DNA should be reinfused into corporate research institutes. Asia Economy presents a four-part series exploring the research institutes of global corporations, proposing the role of technology and policy in this era.

Koo Ja-kyun, Chairman of the Korea Industrial Technology Association, is being interviewed by Asia Economy. LS Electric.

The absence of long-standing, innovative corporate research institutes has been a longstanding challenge for Korean industry. The case of IBM in the United States, which overcame a crisis and wrote a dramatic turnaround story, shows that corporate research institutes like the IBM Watson Research Center are not merely technical departments but serve as the heart of the company and the foundation of national competitiveness.

Asia Economy met with Koo Ja-kyun, Chairman of the Korea Industrial Technology Association, to assess the current state of corporate research and development (R&D) in Korea and to hear his ideas for the future. The Korea Industrial Technology Association supports the establishment and operation of about 50,000 corporate research institutes, providing institutional foundations and offering solutions and alternatives between the government and the private sector.

Chairman Koo pointed out that a focus on short-term results is hindering the accumulation of technology and the improvement of industrial fundamentals, emphasizing the need for long-term vision and decisive action from management, along with supportive policies. He asserted that the future of the Korean economy depends on “corporate research institutes.” Stressing the urgency, Chairman Koo called for immediate support, as Korea’s corporate research institutes are now facing a crisis.

Chairman Koo diagnosed that, despite Korea’s R&D investment ranking among the world’s top five, corporate research institutes are suffering a dual blow from the economic downturn and a shortage of talent, pushing them toward short-term performance. He presented both an analysis of the current state of corporate R&D and remedies for these issues, offering practical alternatives for future policy and the role of management.

According to Chairman Koo, the most urgent task for Korean R&D is “securing talent.” He warned that a shortage of personnel due to low birth rates and an aging population poses a critical threat to national technological capabilities, and that securing talent should be treated as a national emergency requiring an all-out effort. To this end, he proposed the urgent establishment of a “National Innovation Talent Headquarters” to integrate and manage the currently fragmented talent support programs across ministries, serving as a nationwide control tower for talent acquisition.

He particularly stressed that, as artificial intelligence (AI) is now a “game changer” reshaping industry, there is an urgent need for strong national leadership to coordinate AI policies that are currently scattered across ministries. He noted that the revival of the position of Deputy Prime Minister for Science and Technology, which once led the golden age of Korea’s science and technology policy, is a highly encouraging development. He emphasized that only if the Deputy Prime Minister is empowered to break down barriers between ministries can Korea become one of the world’s top three AI powerhouses. He added that Korea will only truly emerge as a global AI leader when the voices from the industrial field are properly reflected in national policy.

As for the conditions needed for Korea to produce “long-standing, innovative research institutes” like the IBM Watson Research Center, Chairman Koo placed the highest priority on “leadership from management.” He emphasized the need for management to avoid being fixated on short-term results and to make bold decisions to maintain R&D investment even amid uncertainty.

Chairman Koo cited the example of Jensen Huang, Chief Executive Officer of Nvidia, who, even in the face of bankruptcy, boldly invested in graphics processing units (GPUs) as the core infrastructure of future industries. He stressed that, within companies, technology leaders must be directly involved in decision-making and management strategies.

Chairman Koo also called for the government to provide “exceptional tax support” to encourage corporate R&D. Tax incentives are the most effective “carrot,” as they reduce the risks companies face during R&D investment and encourage bold investment in challenging fields. He suggested introducing incentives such as an “R&D investment increase bonus,” which would reward companies that increase their R&D spending, thereby facilitating the circulation of corporate funds.

Finally, Chairman Koo emphasized that, for researchers, pride and respect are more important than simple rewards. He advocated for fostering a social environment that values corporate researchers. Just as the United States awards medals for technological innovation to outstanding researchers, and the United Kingdom honors Alan Turing by featuring him on its currency, Korea should also elevate the status of researchers. In this context, he assessed the designation of “Technology Developer’s Day” as a national commemorative day under the “Corporate Research Institute Act,” which will take effect in February next year, as a highly meaningful step that will boost the pride of private-sector researchers.

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