The Korea Institute of S&T Evaluation and Planning (KISTEP; President Taeseok OH) and the Korea Institute for Industrial Economics & Trade (KIET; President Nam‑hoon Kwon) hosted a joint forum titled “A Major Policy Shift for Innovation in an Era of Technology Primacy and Economic Security: Strategies to Integrate Technology and Industry” on Tuesday, November 25, at the President Hotel in Jung‑gu, Seoul.

 

Amid intensifying global technology rivalry and rising uncertainty around economic security, the forum set out to explore new policy directions for sustainable growth and stronger industrial competitiveness. Leaders from the National Assembly and the administration attended and engaged in in‑depth discussions on integrated approaches that bridge technology innovation and industrial policy.

 

Congratulatory remarks

 

Prior to the presentations, the following officials delivered congratulatory remarks: Rep. Hyun Kim (Democratic Party of Korea), Rep. Hyung‑du Choi (People Power Party), Rep. Jung‑a Hwang (Democratic Party of Korea), Rep. In‑cheul Cho (Democratic Party of Korea), In‑gyu Park, Vice Minister for Science, Technology and Innovation, MSIT, and Dong‑il Park, Deputy Minister for Office of Industrial Policy, MOTIR.

Rep. Jung‑a Hwang delivers remarks.

 

Rep. Jung‑a Hwang emphasized that, in an era of intensifying global competition for technological primacy, closer integration between technological innovation and industry is imperative. She stressed that beyond simply expanding R&D investment, substantive policy support is needed to carry research results through to industrial application and impact. As a member of the Special Committee on Budget and Accounts, she added that she would work to ensure that core budget lines in science, technology, and industry are adequately funded.

 

In a video address, Rep. Hyun Kim said that compounding crises—including AI‑driven shifts in industrial structure, instability in global supply chains, and intensifying U.S.–China competition for technological primacy—are deepening, and that the transition pathway from technology to industry to market must be fundamentally redesigned. Rep. Kim also expressed a commitment to active policy support at the parliamentary level, including reform of the R&D system, regulatory streamlining and overhaul, and expanded investment in national strategic technologies.

Rep. Hyung‑du Choi offers remarks.

 

Rep. Hyung‑du Choi, a member of the Special Committee on Budget and Accounts, noted the challenging fiscal environment—rising national debt and volatility in interest and exchange rates. He stressed the need to prioritize and concentrate investment in science and technology, digital technologies, and industrial technologies, and pledged to help translate the forum’s discussions into actual budgets and policies.

 

Rep. In‑cheol Cho, in a written message, said the National Assembly would actively support the creation of a virtuous cycle from technology development → industrial innovation → growth—through strategic investment, upgraded industrial policy, and regional innovation ecosystems. He expressed hope that the forum would serve as a practical milestone for Korea’s industrial take‑off.

In‑gyu Park, Vice Minister for Science, Technology and Innovation, MSIT

 

In‑gyu Park underscored the importance of a virtuous cycle in which science and technology generate knowledge, technology scales into industry, and industry drives the national economy. Noting that the pace of linkage from S&T to industry is accelerating, he called for tearing down ministerial silos and building a collaborative, whole‑of‑government strategic framework, highlighting the significance of the forum.

 

Dong‑il Park, Deputy Minister for Office of Industrial Policy, MOTIR

 

Dong‑il Park noted that, even amid successive crises, manufacturing and the broader industrial sector have continued to serve as the backbone of Korea’s economy. He underscored the importance of strengthening the domestic industrial base and enhancing competitiveness, adding that, in an era when government‑led efforts alone have their limits, government support delivers the greatest impact when national strategy is aligned with private‑sector capabilities and on‑the‑ground industry priorities.

Taeseok OH, President of KISTEP, delivers a keynote.

 

In his keynote, Taeseok OH argued that, as the global tech power structure is rapidly being reconfigured, Korea needs a new, integrated policy architecture that spans R&D and industrial innovation to achieve sustainable growth. He noted that competition over future technologies such as AI and quantum is extending into supply chains, standards, and norms, leading to a bloc‑like technology order. He also observed that China’s state‑led “total‑mobilization innovation system” is accelerating and reshaping the global technology landscape.

 

He also noted that, despite the government’s expanded R&D budget, research outcomes are still not being sufficiently translated into industrial upgrading and economic value creation. To address this gap, he laid out five key directions for innovation policy:

▪ Integrated policy design that reflects and supports the broader industrial ecosystem

▪ Stronger end‑to‑end support across the full pipeline—R&D → demonstration/validation → commercialization → diffusion/scale‑up

▪ Deeper public–private collaboration and an expanded set of co‑investment models

▪ Building a dedicated finance framework for advanced technologies

▪ Strengthening the policy foundation, cross‑ministerial coordination, and the overall innovation ecosystem

 

He concluded that an ecosystem‑centered shift—one that integrates technology, industry, talent, and investment—is key to strengthening Korea’s competitiveness in national strategic technologies. He added that the KISTEP–KIET Joint Forum would provide an opportunity to further strengthen the foundation for cooperation between the two institutes.

 

Nam‑hoon Kwon, President of KIET, gives a presentation.

 

Nam‑hoon Kwon argued that globalization has not reversed but is being “reconfigured,” and that Korea needs a new industrial policy to maintain competitiveness. He noted that globalization has slowed since the financial crisis amid shifts in technology, policy, and geopolitics, and that advanced economies such as the United States and Europe are turning to active industrial policies, including subsidies and import controls. Citing Tesla, he explained how government support—from basic R&D through infrastructure and capital equipment, and even demand-side measures—has strengthened the competitiveness of U.S. advanced industries.

 

Turning to the current state of Korean industry, he flagged a number of issues as serious concerns: weakening competitiveness across most manufacturing product categories; a shift in the Korea–China relationship from “cooperation” to “competition”; a slowdown in the pace of manufacturing upgrading; a decline in the export sophistication index; and continued drops in potential growth and total factor productivity (TFP). He cautioned that a structure in which high‑quality patents fail to translate into firm‑level performance points to fundamental limitations in Korea’s innovation system. Kwon added that, because industrial policy and technology‑innovation policy can collide, Korea needs professionally grounded, evidence‑based—and finely calibrated—coordination. He said KIET will work with KISTEP to help shape a national innovation strategy.

 

Expert discussion

 

Expert panel discussion

 

An expert panel followed, featuring Cheol Lee (former Head of Samsung SDS China), Yun‑sun Park (Director, KDB Future Strategy Institute), and Yang‑hee Kim (Professor, Daegu University), who held an in-depth discussion on policy options to integrate technology and industry.

MOU signing

KISTEP–KIET MOU Signing

 

Meanwhile, ahead of the forum, the two organizations signed a memorandum of understanding (MOU) to strengthen mutual cooperation in research on science and technology and industrial policy, and to jointly identify shared agenda items. Through this agreement, the two sides are expected to make a meaningful, practical contribution to the advancement of national policy by leveraging their respective research expertise and expanding the exchange of information.

 

President Taeseok OH stressed that building a cooperation platform to support technology innovation and industrial policy is paramount, and that innovation should be advanced from an integrated perspective. President Nam‑hoon Kwon likewise reaffirmed the need for collaboration, noting that as boundaries blur between science‑and‑technology and industrial policy, diverse expertise must be brought together.

Group Photo Following the KISTEP–KIET MOU Signing