S. Korea faces shortage of skilled workforce in key technology sectors

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South Korea will face a shortage of more than 50,000 workers in the next five years in four new technology fields: artificial intelligence (AI), cloud, big data and nano, a report warns. The impact of this shortage is expected to be particularly severe for small and medium-sized enterprises (SMEs) and startups, where talent attrition is anticipated to be a significant challenge. The report suggests that efforts should be made to bolster advanced workforce training programs and actively utilize foreign students to address this issue.

The report jointly published by the Ministry of Employment and Labor and the Korea Research Institute for Vocational Education and Training shows projections that highlight the demand-supply gap in the workforce for each of the mentioned technology sectors.

In the AI sector, for instance, the demand for skilled personnel is predicted to reach 66,100 by 2027, while the supply is estimated to be 53,300, resulting in a shortage of 12,800 professionals. The report which was unveiled on Thursday is based on the government’s industry-specific survey.

In particular, the demand for high-level workers in R&D is 21,500, but the supply from the government, private sector, and universities is only 4,900, leaving a gap of 16,600.

While the use of AI in various fields such as healthcare, finance, manufacturing, and services is expected to expand, the report also noted that the importance of AI technology is being emphasized internationally, which could lead to an outflow of skilled workers from South Korea.

In the realm of cloud computing, the report projects a demand-supply gap of 18,800 professionals within the same five-year period. The expansion of cloud services, encompassing servers and software solutions, continues to drive market growth, intensifying the scarcity of talent. The report particularly emphasizes the shortages in operational and system development roles, estimating a gap of 8,300 junior to intermediate-level professionals and 10,500 advanced professionals in the cloud sector.

The big data sector is also expected to face a shortage of 19,600 skilled professionals. As the importance of data, a fundamental pillar of digital innovation, permeates across industries, the demand for advanced data experts is anticipated to surge. Despite a demand of 99,000 big data professionals, the supply is predicted to fall short, with 73,300 junior to intermediate-level professionals and 6,100 advanced professionals.

Furthermore, the report anticipates a surge in demand for skilled personnel in nanotechnology, which caters to ultra-precise scientific and technological applications in fields like display technology, energy, environment, biotechnology, and materials. The report projects a demand of 10,600 junior to intermediate-level professionals and 3,400 advanced professionals, while the supply is projected to be 4,800 and 800, respectively.

To address the shortage of skilled workforce, the Korea Carbon and Nano Industry Association suggests that the government consider attracting engineering students from countries like Vietnam and Thailand to SMEs and venture companies across the country.