This essay was first published by Seoul National University's Institute for Future Strategy. You can also view the Korean version.

Technological hegemony surrounding artificial intelligence (AI) has emerged as a central facet of national economies and security. Global competition among countries and corporations to secure high-level talent has intensified into a matter of survival. Worldwide demand for AI talent now exceeds supply by more than threefold. In Silicon Valley, AI dominates the discussion, and competition among big tech firms to attract talent is escalating. Ultimately, the rivalry between the United States and China will be decided not only by capital or technology but by who succeeds in attracting and retaining global talent.

In South Korea, concerns over talent outflows from Korea are growing. Last year, Korea ranked fourth among the 38 OECD countries in terms of AI talent outflow. Compared to other advanced economies, Korea’s AI industrial ecosystem remains underdeveloped, while overseas firms offer better compensation and research environments. The recent phenomenon of 56 Seoul National University professors relocating abroad over the past four years, a “new brain drain,” must be understood in this broader structural context.

This reality is also clearly reflected in the Global Talent Competitiveness Index, published annually by INSEAD. Korea ranked 31st this year, a position disproportionately low relative to its economic standing, and fell seven places compared to two years ago. In particular, Korea performed poorly in attracting and retaining talent, ranking 55th and 37th, respectively. These findings suggest that, beyond economic incentives, social, cultural, and environmental factors play a decisive role in talent mobility.

Korea’s talent outflow is especially alarming because it coincides with record-low fertility rates and rapid population aging. Before this convergence hardens into irreversible decline, Korea must establish a Ministry of Human Resources to oversee a comprehensive national talent strategy and devise systemic measures for talent development, attraction, and utilization.
 

Talent Portfolio Theory
 

In a recent book published by Stanford University Press, The Four Talent Giants, I proposed a framework titled “talent portfolio theory.” Just as financial investment strategies adopt a portfolio approach, national talent strategies should also be portfolio-based, emphasizing diversification to minimize risk and continuous adjustment (rebalancing). In other words, just as financial portfolios are composed of cash, stocks, real estate, and bonds, talent portfolios consist of four elements—the “4B's”: brain train, brain gain, brain circulation, and brain linkage.

Moreover, just as investors design different portfolios, each country’s talent portfolio varies depending on its economic needs as well as cultural and institutional contexts. Japan, Australia, China, and India (all discussed in the book) include all four B's but have constructed distinct portfolios that contributed to their respective economic development. A portfolio approach transcends the traditional binary of “brain drain versus brain gain” and offers a more comprehensive and flexible framework for understanding national talent strategy, one that is particularly relevant for Korea.

First, “brain train” refers to developing domestic human resources through education and training. It is a fundamental element of any portfolio. In Japan’s portfolio in particular, homegrown talent accounts for a large share. Japan has favored domestically educated and trained talent over foreign or overseas-trained individuals, making them the backbone of its economic development.

By contrast, Australia places greater emphasis on “brain gain.” Brain gain involves importing foreign labor, and approximately 30 percent of Australia’s workforce is foreign-born. Until the 1970s, Australia upheld the “White Australia” policy, but a major shift toward multiculturalism subsequently elevated brain gain to a central position in its portfolio. Brain gain pathways include the study-to-work route, where international students remain for employment, and the work-to-migration route, where individuals enter on work visas and later settle. Australia has effectively utilized both pathways.

“Brain circulation” involves bringing back nationals who were educated or employed abroad, and it has been critical to China’s portfolio. Following China’s opening in the 1980s, Chinese nationals came to represent the largest share of participants in the global talent market, including international students. Approximately 80 percent of them returned to China after the 2000s. Known as haigui (sea turtles), these returnees played prominent roles in China’s science, technology, education, and economy, supported by numerous central and local government programs designed to promote talent circulation.

“Brain linkage” refers to those who do not return home after studying or working abroad but instead serve as bridges between their host countries and their homeland. By leveraging their local networks, social capital, they support their home country from abroad, making this a key component of India’s portfolio. India refers to them as a “brain bank” or “brain deposit,” exemplified by leaders of Silicon Valley big tech firms such as Google CEO Sundar Pichai.

However, all talent portfolios carry inherent risks. When adjustment is delayed or fails, risks can escalate into crises with negative effects on the broader economy. The experiences of the four countries illustrate this point.

Japan has faced two major risks. A talent strategy centered on domestic talent weakened its global competitiveness, while demographic decline reduced its labor pool. Although Japan actively attracted foreign students to increase brain gain, its exclusive social and cultural environment limited their integration into the workforce after graduation. While there are many reasons behind Japan’s “lost 30 years” since the 1990s, one factor was its failure to adjust a portfolio overly concentrated on domestic talent in a timely manner.

Australia has confronted rising anti-immigration sentiment and tensions with China. Public concern grew over excessive immigration and perceived threats to national identity, prompting the government to tighten immigration policies. Amid conflict with China, Australia diversified its foreign talent sources from China to India and Southeast Asia. The pandemic, which restricted cross-border mobility, dealt a severe blow to Australia’s talent attraction efforts.

In China’s case, despite aggressive brain circulation policies, top-tier global talent has remained hesitant to return, as relinquishing careers built abroad is not easy. China accordingly shifted its focus toward brain linkage for these elite individuals. At the same time, brain circulation and linkage strategies became a source of friction with the United States, and rising anti-immigration and anti-China sentiment in the U.S. and Europe reduced opportunities for study and employment abroad. Recently, China has adjusted its portfolio to strengthen domestic talent development.

India, despite its strong brain linkage, remains vulnerable to brain drain. However, as economic opportunities expand domestically, return migration has increased, gradually reshaping its portfolio composition.
 

What Should Korea’s Talent Portfolio Strategy Be?

What, then, about Korea? Let us examine Korea’s situation by comparing it with the four countries through the lens of talent portfolio theory.

Brain train: Human resources have been critical to Korea’s economic development, with the government playing a central role. Key examples include preferential policies for technical and commercial high schools during the 1970s under the Park Chung Hee administration to support industrialization, and efforts to internationalize universities in the 1990s as part of globalization. While less dominant than in Japan, brain train has constituted a significant share of Korea’s talent portfolio.

Brain gain: Korea has imported low- and semi-skilled labor from China and Southeast Asia to fill so-called 3D jobs, but attraction of global high-level talent has remained limited. As in Japan, social exclusivity and cultural barriers continue to impede integration.

Brain circulation: Comparable to China, brain circulation has played a vital role in Korea’s economic development. Overseas education and experience have carried strong premiums, and China explicitly benchmarked Korea and Taiwan when designing its own policies.

Brain linkage: Compared to brain circulation, brain linkage has, until recently, occupied a relatively small share of Korea’s portfolio.

Facing the AI era, low fertility, and the crisis of a new brain drain, what strategy should Korea pursue in the global competition for talent? As noted above, rather than fragmented and ad hoc measures, Korea must comprehensively review and continuously adjust its talent strategy through a portfolio approach.

Brain train: Korea must cultivate talent for future industries, particularly in science and engineering. Training should be aligned with AI-related fields to better match university output with corporate demand. The excessive concentration of top students in medical schools must be corrected. Support mechanisms to retain domestic talent should be strengthened. A recent Bank of Korea survey of 1,916 science and engineering master’s and doctoral degree holders working domestically found that 42.9 percent of science and engineering master’s and doctoral graduates are considering overseas employment within three years—an alarming signal. While brain train will remain vital, its relative share is likely to decline.

Brain gain: As demographic crises intensify and the share of brain train diminishes, the necessity and importance of brain gain will grow. In particular, Korea must actively utilize the more than 300,000 foreign students currently in the country as human and social capital. At present, universities focus merely on filling enrollment quotas, and most foreign students either leave Korea immediately after graduation or remain employed only briefly. This, too, constitutes a form of brain drain. To increase the share of brain gain in the portfolio, foreign students must be managed holistically from selection to graduation and employment. While immigration is ultimately inevitable, it must be approached cautiously and deliberately, considering its impact on the domestic labor market and anti-immigration sentiment. Australia’s successful experience offers useful lessons.

Brain circulation: Although it occupies a relatively modest share of Korea’s portfolio, a certain level should be maintained. With declining numbers of students studying abroad and reduced inclination among overseas Koreans to return, care must be taken to prevent a sharp drop in this component. Otherwise, Korea risks losing global competitiveness, as Japan’s experience warns.

Brain linkage: Alongside brain gain, brain linkage is crucial to Korea’s portfolio adjustment. Key target groups include departing domestic talent (the new brain drain), foreign students, and the diaspora. Although their likelihood of reemployment in Korea is low, their potential for exchange and collaboration with Korea remains open. Like India, Korea should foster and support brain linkage by treating them as a “brain bank” or “brain deposit.”
 

Toward the Establishment of a Ministry of Human Resources

At the national level, a control tower is needed to design an optimal talent portfolio and make timely adjustments. Korea should establish a Ministry of Human Resources by consolidating functions currently dispersed across the Ministry of Education (universities and graduate schools), the Ministry of Science and ICT (R&D), and the Ministry of Employment and Labor (foreign employment support). It is worth recalling that Singapore, ranked first globally in talent competitiveness, established its Ministry of Manpower early on. Expanded and reorganized from the Ministry of Labor in 1998, it played a pivotal role in transforming Singapore into a talent powerhouse. Through education and development investments, Singapore strengthened domestic talent competitiveness while opening its doors to multinational talent, and it also implemented policies to promote talent circulation and linkage. From the perspective of talent portfolio theory, Singapore represents a successful case of diversification and continuous adjustment. In the increasingly fierce global competition for talent in the AI era, nations and firms that fall behind cannot secure their future. Korea is no exception.

This post was originally published by the Harvard Law School Forum on Corporate Governance.

TikTok’s travails under the Trump and Biden Administrations are typically portrayed as a clash between national security interests and First Amendment protections. This tension is the focus of TikTok’s suit against the U.S. Government over a 2024 law that subjects the video platform to a ban in the United States unless it is divested from Chinese control by January 19, 2025.

But TikTok’s problems in the United States expose another serious tension: between longstanding legal doctrines of corporate identity and separate personality, on one hand, and increasing concerns over Beijing’s use of erstwhile private commercial firms as instruments of state influence, on the other. The divest-or-ban legislation illustrates that corporate law’s answers to the question of corporate identity and separateness are not definitive in a de-globalizing world.

Continue reading the post here.

On May 2, 2024, Stanford University's Walter H. Shorenstein Asia-Pacific Research Center (APARC) marked the inauguration of its new Taiwan Program at the conference Innovate Taiwan: Shaping the Future of a Postindustrial Society. The program will produce policy-relevant research to tackle the challenges facing Taiwan’s economy and society in a new era of global relations. It will also prepare the next generation of students to become experts on Taiwan and foster interactions between the Stanford community and Taiwanese stakeholders.

The program’s inaugural conference reflected this triadic mission. It gathered leading industry and academic experts from the United States and Taiwan with Stanford students to engage in diverse panel discussions. The all-day event saw a high turnout of attendees from Stanford and the broader community, including alumni and stakeholders from Taiwan.

Stanford President Richard Saller congratulated the program's establishment, noting it will advance Stanford as a global university by producing scholarship that transcends academic boundaries. “The program will do what Stanford does best — provide a cross-disciplinary, university-wide hub, where scholars from across campus and beyond can convene to study contemporary Taiwan,” said Saller. He described Taiwan as a beacon of democracy and the program’s establishment as demonstrating the university’s belief in the importance of the U.S.-Taiwan relationship.

APARC Director Gi-Wook Shin, the William J. Perry Professor of Contemporary Korea and a professor of sociology in the School of Humanities and Sciences, remarked that students and community members have increasingly expressed interest in studying Taiwan. “This is an opportune time to launch a Taiwan program with a comprehensive focus on economic, social, cultural, educational, and health-related matters,” he said. Shin underscored the program’s commitment to inspire new generations of Stanford students to engage with Taiwan.

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Taiwan's Evolving Cultural Landscape

The first panel delved into contemporary research on Taiwan's societal and cultural trends and reflected on the nature of Taiwan studies. Pei-Chia Lan, a professor of sociology at National Taiwan University, shared findings from her research into the emerging formation of second-generation identity in Taiwan. She explained that an influx of immigrants and their bicultural children are transforming Taiwan’s self-perceived racial and ethnic homogeneity. For Lan, “Migration provides a critical lens for investigating Taiwan's history, transformation, and globalized development.”

Jing Tsu, Yale University’s Jonathan D. Spence Chair Professor of Comparative Literature & East Asian Languages and Literatures, offered a captivating account of the increasing appeal of Taiwan’s folk religious tradition exemplified in Mazu pilgrimages honoring the Goddess of the Sea or Taiwan’s “heavenly mother.” Tsu positioned the phenomenon of Mazu worship relative to Taiwanese identity, framing Taiwan's cultural heritage within a global context.

Ruo-Fan Liu, a PhD candidate in sociology at the University of Wisconsin-Madison and incoming postdoctoral fellow at APARC, zoomed out from her research on education and culture in Taiwan to a larger vision of Taiwan studies in North America. She outlined three strategies to propel the field forward: enhancing data accessibility, bolstering theorizing capability, and expanding transnational and global comparisons. APARC Deputy Director and Japan Program Director Kiyoteru Tsutsui moderated the conversation, integrating the diverse perspectives into a discussion of Taiwan's societal milieu.

Technology, Innovation, and Economic Growth

The conference emphasized Taiwan's success as a modernization exemplar while addressing its challenges on the journey toward a sustainable economic future.

The second panel examined Taiwan's strides in healthcare innovation and biotechnological advancements, with industry leaders offering glimpses into the transformative potential of AI-driven healthcare solutions. Ted Chang, CTO of Quanta Computer, Bobby Sheng, Group CEO of Bora Pharmaceuticals, and C. Jason Wang, Stanford’s LCY Tan Lan Lee Professor of Pediatrics and Health Policy, reflected on the convergence of technology and healthcare delivery and the new era it heralds for personalized medicine and digital health solutions. APARC’s Asia Health Policy Program Director Karen Eggleston moderated the discussion, prompting the panelists to consider questions of equitable access and trust in healthcare technology.

Larry Diamond, the Mosbacher Senior Fellow in Global Democracy at the Freeman Spogli Institute for International Studies, led a following conversation on the strategic imperatives for Taiwan's economic future and global positioning. Four experts joined him: Steve Chen, co-founder of YouTube, Jason Hsu, former legislator of the Legislative Yuan Taiwan, investment banker CY Huang, founder and president of FCC Partners, and digital commerce leader Rose Tsou, a former executive at Verizon Media, MTV, and Yahoo.

The panelists agreed that Taiwan must address its strained cross-Strait relations, develop a more diversified economy, move beyond sole reliance on semiconductors, and modify its energy policy to meet growing electricity demand and the transition to a low-carbon economy.

Another consensus emerged about the need for government intervention to create an environment more conducive to entrepreneurship and global talent. Chen, who relocated his family to Taiwan in 2019 after two decades in Silicon Valley, shared his efforts in cultivating the island's startup ecosystem and experience being the inaugural recipient of the Taiwan Gold Card Visa, issued by the Taiwanese government to attract foreign talent for residence and employment.

Taiwanese Identity and Taiwan Studies at Stanford

Highlighting the role of youth and community engagement, the conference also included a student panel centered on Taiwanese identity and Taiwan studies on campus. Second-year student in Management Science and Engineering Tiffany Chang, who is also a pageant queen and research assistant at APARC, shared her introspective journey of self-discovery through her experience becoming Miss Asia USA, representing the Taiwanese community, and acting as an ambassador for Asian communities at large.

Carissa Cheng, a third-year student in International Relations, described her advocacy for community cohesion via Stanford’s Taiwanese Cultural Society. Yi-Ting Chung, a PhD candidate in the Department of History, recounted her experience designing and teaching a course in Taiwanese history. She argued that Taiwanese history merits being taught in a dedicated history class rather than as a subset of Chinese or Japanese history. ”The existence of a Taiwanese history class at Stanford is a statement and a way for students to have a vested interest in Taiwan,” she said. Third-year student in international Relations Marco Widodo moderated the dynamic conversation.

Marked by multidisciplinary inquiry and cross-cultural exchange, the conference ignited dialogue on Taiwan’s future and generated enthusiasm for collaboration on building a leading program on Taiwan at Stanford.

Media coverage of the "Innovate Taiwan" conference is available via:

Central News Agency >
Radio Taiwan International >

Stanford University's Walter H. Shorenstein Asia-Pacific Research Center (APARC) proudly announces the launch of the Taiwan Program, which will serve as an interdisciplinary research and education hub on contemporary Taiwan. The program will investigate Taiwan’s strides as a modernization exemplar and the challenges its economy and society face in seeking to drive dynamism and growth in an era marked by shifting global relations. On May 2, 2024, APARC will host the program’s inaugural conference, Innovate Taiwan: Shaping the Future of a Postindustrial Society. Registration for the conference is now open.

Mirroring the dilemmas of other postindustrial societies, Taiwan today finds itself pressed by multiple imperatives. These include the need to generate novel economic competitiveness models amid rapid technological advancement and declining multilateral cooperation, address changing demographic realities, foster cultural diversity and tolerance, fulfill the action pathway to achieve net-zero emissions, and create the institutional and policy conditions to enable these adaptations. The Taiwan Program will explore how Taiwan can effectively address these challenges and seize the opportunities they afford for it to remain at the forefront of vibrancy and progress in the 21st century. 

Housed within APARC, part of the Freeman Spogli Institute for International Studies (FSI), the Taiwan Program will pursue a mission encompassing research endeavors, education and learning initiatives, and exchange opportunities. By investing in these three core areas, the program will produce interdisciplinary, policy-relevant research to understand and address Taiwan’s challenges of economic, social, technological, environmental, and institutional adaptation in the coming decades; prepare the next generation of students to become experts on Taiwan; and facilitate meaningful interactions between Stanford faculty, researchers, and students with their Taiwanese counterparts and with policy experts, industry leaders, and civil society stakeholders in Taiwan. In all these areas, the program will leverage APARC’s expertise and networks and build upon the center’s strong track record of academic research and policy engagement with East Asia. This includes leveraging the proven model and rich experience of APARC’s esteemed programs on contemporary China, Japan, and Korea.

"The Taiwan Program underscores our commitment to deepening understanding of and engagement with Taiwan,” said Gi-Wook Shin, the William J. Perry Professor of Contemporary Korea and director of APARC. “We aim to foster research-practice partnerships between the United States and Taiwan while contributing to Taiwan's long-term development," added Shin, who is also a professor of sociology, a senior fellow at FSI, and director of the Korea Program at APARC.

The program will be led by a distinguished scholar of contemporary Taiwan to be recruited by the university in an international search. APARC will soon announce its inaugural postdoctoral fellow on contemporary Taiwan, who will help organize the program’s activities in the next academic year. The new program is made possible thanks to tremendous support from several Stanford donors who care deeply about Taiwan’s role on the global stage and U.S.-Taiwan relations. 

"We are profoundly grateful to our supporters for their partnership and commitment to advancing understanding of Taiwan and the U.S.-Taiwan relationship in this pivotal Asia-Pacific region," noted Shin. “This new investment will help us establish a world-leading program on Taiwan at Stanford.”

To inaugurate the new program, APARC will host the conference "Innovate Taiwan: Shaping the Future of a Postindustrial Society." Held on May 2 at the Bechtel Conference Center in Encina Hall, this full-day event will convene esteemed academic and industry leaders to engage in panel discussions covering topics such as migration, culture, and societal trends; health policy and biotechnology; economic growth and innovation; and the dynamics of domestic and international Taiwanese industries. Visit the conference webpage to learn more and register to attend in person.