A Bank of Korea (BOK) study found that 70% of science and engineering workers in their 20s and 30s are considering moving overseas. The main reasons cited were salary levels, the research ecosystem, and working conditions. The BOK suggested strengthening tax incentives for human capital and improving the efficiency of research and development (R&D) investment.
On the 3rd, the Bank of Korea (BOK) published "BOK Issue Note: Determinants of the outflow of science and engineering personnel and policy responses." The report was co-authored by Choi Jun, Director, Jeong Sun-young, Vice Administrator, An Byeong-tak, researcher, and Un Yong-jun, Head of Team, of the Economic Research Department's Macro Analysis Team.
A survey of about 2,700 science and engineering workers at home and abroad found that 42.9% of domestic workers said they are considering moving overseas within three years. The share reached 70% among those in their 20s and 30s.
The biggest reason for considering an overseas move was monetary factors such as salary level. According to the research team, the average annual salary for science and engineering workers with 12 to 13 years of experience overseas exceeds $350,000, while domestic workers with the same experience receive an average of 100 million won (about $70,000), or just one-fifth. Non-monetary factors also had a significant impact, including the research ecosystem and networks (61.1%) and guaranteed career opportunities (48.8%).
An empirical analysis of the factors behind overseas moves found that if income satisfaction improves from "average" to "satisfied" (a one-point increase on a 1–5 scale), the probability of moving overseas decreases by 4.0 percentage points (p). If satisfaction with job security and promotion opportunities improves, the probability of moving decreases by 5.4 percentage points and 3.6 percentage points, respectively.
Based on these results, the research team advised policies including: ▲ an overhaul of monetary compensation systems to secure top talent ▲ strengthening the effectiveness of research and development (R&D) investment ▲ expanding the innovation ecosystem by broadening the base for tech startups and opening up strategic technologies.
The research team said, "A shift to a flexible wage and compensation system based on performance is needed," and added, "To that end, the government should strengthen tax incentives and institutional support for investment in human capital." Specific tax incentive examples included enhancing the effectiveness of tax credit for human investment and reducing income taxes for key personnel.
It also noted that "R&D capacity should be strengthened by establishing a predictable career track so that master's-level researchers can grow stably in Korea, enhancing exchanges with overseas research institutions and researchers, and improving access to advanced infrastructure."