South Korea must seek new growth strategies amid the second Donald Trump administration and the U.S.-China technological hegemony competition.
Robert Atkinson, president of the Information Technology and Innovation Foundation (ITIF), said this on the 22nd at the ‘National Strategic Technology Innovation Forum for the First Half of 2025’ held at the Korea Advanced Institute of Science and Technology (KAIST) in Daejeon.
Atkinson noted that South Korea has achieved faster economic growth than any other country in the world, but the global order and industrial structure are rapidly changing, stating, "Especially now, as the technological competition between the U.S. and China intensifies, it is necessary to redefine South Korea's position."
According to ITIF's analysis, China is rapidly growing in metals, displays, robotics, artificial intelligence (AI), and quantum technology, but remains weak in fields where the U.S. has strengths, such as life sciences, pharmaceuticals, and information technology (IT). Atkinson said, "In this situation, South Korea's technological strengths cannot be ignored," adding that "cooperation between South Korea and the U.S. could become an important strategy to counter China."
Steven Ezell, vice president of global innovation policy at ITIF, also projected, "South Korea shows strength in computers and electronics, while the U.S. excels in pharmaceuticals and IT services," suggesting that "the two countries can cooperate complementarily."
However, Atkinson pointed out that there are challenges South Korea must overcome to become a technological powerhouse. He stated, "South Korea has high potential to achieve innovation in fields such as space and AI, but it needs to look beyond that," adding that "a culture to foster innovation must be established."
In particular, he advised, "South Korea is focusing on supporting small and medium-sized enterprises, but it needs to create an ecosystem where corporations can grow and expand globally," and emphasized the need to overcome the 'Peter Pan syndrome' to encourage the emergence of global corporations.
He also stated that the regulatory environment hindering innovation must be improved. Atkinson noted, "The fact that South Korean society still maintains a permit-centered regulatory system is also a problem," and added, "An open system based on no permits is necessary for innovation, and a flexible response is needed for new technologies such as AI and fintech, rather than preemptive regulation."
He concluded, "South Korea has strengths in hardware, but the future economy will center on the combination of software and AI," stating that "the new South Korean government, which will soon be inaugurated, must focus on enhancing software capabilities."