South Korea Faces Growing Talent Deficit as High-Skilled Workers Head Abroad (Image supported by ChatGPT)
SEOUL, June 18 (Korea Bizwire) — South Korea is experiencing a widening deficit in high-skilled labor as more top-tier professionals, particularly in fields like artificial intelligence, continue to leave the country, prompting renewed calls for structural reforms to retain and attract global talent.
In a report released Tuesday, the Korea Chamber of Commerce and Industry’s Sustainable Growth Initiative (SGI) introduced the concept of “brain balance” — a measure of the net flow of domestic professionals emigrating abroad versus foreign professionals entering Korea. The report paints a stark picture of South Korea’s declining competitiveness in global talent retention.
As of last year, Korea ranked 35th out of 38 OECD countries in net AI talent flow, with -0.36 AI professionals per 10,000 people. In contrast, Luxembourg reported a surplus of +8.92, followed by Germany (+2.13) and the United States (+1.07).
Between 2019 and 2021, the number of Korean professionals working abroad increased from 125,000 to 129,000, while the number of foreign experts entering Korea fell from 47,000 to 45,000. This pushed Korea’s talent deficit—what SGI refers to as its “brain balance”—from 78,000 to 84,000 over the same period.
The report further highlighted that the outflow rate of Korean scientists (2.85%) continues to exceed the inflow rate of foreign scientists (2.64%), placing Korea 33rd out of 43 countries surveyed. These figures lag behind major economies such as Germany (+0.35%), China (+0.24%), and even Japan (-0.14%).
South Korea Grapples with Worsening Brain Drain, Report Warns (Image courtesy of Yonhap)
SGI attributes the talent drain to short-term performance-based evaluations, rigid seniority-based compensation systems, underdeveloped research infrastructure, and limited opportunities for international collaboration. “The most capable individuals are the most likely to leave,” the report noted, warning of an entrenched pattern where success is rewarded by emigration.
The economic implications are significant. The average cost of public education per university graduate in South Korea is approximately 214.8 million won. When such individuals work overseas, the government is estimated to lose about 340.7 million won in lifetime tax revenue per person.
In response, SGI urged policymakers to reform compensation systems to reward performance rather than tenure. Recommendations include expanding merit-based pay, introducing more flexible work arrangements (including exemptions from the 52-hour workweek), and strengthening differentiated incentives for research outcomes.
More importantly, SGI emphasized that the goal should not merely be to prevent talent outflow, but to adopt a forward-looking “brain gain” strategy—attracting talent back to Korea and creating a sustainable cycle of talent circulation.
With President Lee Jae-myung’s administration prioritizing economic innovation and President Trump’s re-election reshaping global talent dynamics, South Korea’s approach to high-skill workforce mobility is emerging as a critical factor in its long-term competitiveness.
M. H. Lee (mhlee@koreabizwire.com)
