It is referred to as technology commercialization when government-funded research institutes create technologies or products using the government's research and development (R&D) budget and sell them in the market as services. South Korea's technology commercialization rate is among the lowest in OECD countries. ChosunBiz will introduce successful examples of technology transfer or startups to promote the spread of technology commercialization and seek ways to improve the system through a series titled 'Digging into the R&D gold mine.' [Editor's note]
Lee Gun-jae, chair professor in the Department of Materials Science and Engineering at Korea Advanced Institute of Science and Technology (KAIST), has been selected as the recipient of the Science and Technology Person of the Month award for February. This award, given by the Ministry of Science and ICT and the National Research Foundation of Korea, recognizes researchers who have contributed to the advancement of science and technology each month. The professor was recognized for developing micro-light-emitting diode (LED) process technology and creating a skin-adhering LED mask based on it.
Micro LEDs are the size of a hair, specifically in the range of ㎛ (micrometers, with 1 being one millionth of a meter). The professor developed a beauty mask that adheres to the skin by integrating micro LED technology with surface light-emitting technology that emits light uniformly. The professor explained, "This is the first successful case of commercializing flexible devices globally."
Based on this technology, the professor founded a startup called Phonics. With investment from Amorepacific Corporation, he proved the technology's capabilities. Phonics signed an exclusive supply contract for micro LED masks with Pacific Tech, a specialized subsidiary of Amorepacific in beauty devices. The professor presented research results last October in the international journal Advanced Materials, showing that the micro LED mask increases skin elasticity by 340% compared to existing products.
In a meeting on the 21st at KAIST's Dogok Campus in Gangnam, Seoul, the professor said that professors must become more proactive in startups and technology commercialization to contribute to the national economy. He has served as the director of the Technology Value Creation Center at KAIST since last March. Although Phonics, founded in 2016, has already established itself successfully, the professor stated he is preparing for a second startup once he steps down from his position. What could be the reason for his decision to walk the path of a serial entrepreneur instead of holding onto a stable teaching position?
–Did you have an interest in startups from the beginning?
"When I was pursuing my doctorate at the University of Illinois Urbana-Champaign (UIUC), my advisor started about ten companies. After earning my PhD, I worked at a startup in Japan, which was founded by Professor Fujio Matsuoka of Tohoku University, who invented NAND flash at Toshiba. Since high school, I dreamed of becoming an engineer and changing the world, so I closely observed the startups of my advisors. After joining KAIST and contemplating how to contribute to society through research, I found my path in technology commercialization. From this perspective, I believe that while papers can be tools for promoting engineering achievements, they should not be the goal themselves."
–Was there no difficulty in your first startup?
"I started developing micro LED technology 15 years ago. I divided my research divided into four fields, one of which was micro LED technology. For professors, entrepreneurship is associated with significant risks. While the risks in university research may involve funding cuts, once you start a business, the risks multiply enormously. However, because it was a commercialization technology that I was interested in for a long time, I thought that commercializing such technology is a way for universities like KAIST to contribute to society."
–What kind of support did you receive from the university when you started your business?
"The university's support system is excellent. Particularly, since President Lee Kwang-hyung took office, many obstacles to faculty entrepreneurship have been removed. For instance, there was a regulation that reduced salaries for professors who started businesses, but now salaries are maintained if they only teach classes. When professors teach students, they are seen as continuing their research through technology commercialization. There are many ambiguous aspects of government regulations and systems related to faculty startups, but thanks to the leadership of the president and the heads of departments, many issues were resolved. While KAIST previously had a strong focus on papers and research, it is now shifting towards a culture of entrepreneurship. If professors do not engage in startups, one might think, 'They probably don't have confidence in their technology yet.'"
In the past four years, KAIST has produced 47 companies through faculty startups. Combining student startups, an average of 115 startups have been established on the KAIST campus annually. KAIST explained that this is due to its streamlined approval process for faculty startups and the operation of various startup support programs.
–Since last year, you have held the position of director of the Technology Value Creation Center at KAIST. In this role, what have you focused on the most as the control tower for technology commercialization?
"In the past, I met with a department head from Stanford University and learned that they require department professors to meet with venture capital (VC) once a year. I also believe it is important for professors to meet and interact with investors and external companies, so I created a gathering for university faculty and VC representatives. I believe it is crucial for the money in the Yeouido capital market to be invested in KAIST's deep tech. No matter how excellent the technology, it will fail if there is a lack of funding. I am increasing opportunities for professors to meet private experts outside and not just exchange academic information among themselves."
–What is the biggest difficulty in starting a deep tech startup in Korea?
"Korea has a small mergers and acquisitions (M&A) market, and since technology transfer by corporations is not active, significant changes are rare. There aren't as many successful startup cases as in the United States or Israel, and the risks are great without rewards, leading to a lack of positive cycles in technology commercialization. One reason for the inadequate technology transfer is the tax issue. Since technology transfer is classified as earned income, heavy taxes are imposed. There are insufficient incentives for responsible technology transfers."
–Are there areas for improvement in R&D policies?
"In government R&D projects, we need to reduce the number of patents filed for performance. These patents lead to waste of research funds. Patents that are filed simply because they are mentioned in research proposals and are not widely used in commercialization or technology transfer are rare. I had the opportunity to discuss this with the Massachusetts Institute of Technology (MIT) Industrial Liaison Program, and they filed far fewer patents than we did but had an extremely high rate of practical application. While South Korea files many patents, the commercialization rate is low. I see this as a superficial achievement for performance, and we must reform the evaluation system to eliminate such waste."
–Why do you continue to emphasize startups and technology commercialization?
"In the 1990s, only a few universities in Korea published SCI (Science Citation Index)-level papers. Now, several universities are producing many quality papers. Times have changed, and KAIST's role must also change. At a recent Davos Forum, I heard that 'the foundation of the economy is the university.' There are limits to corporations' R&D, and universities are indeed the entities that research innovative and future technologies. It would be great if government R&D operated with the aim of contributing to social development. I believe that if we work towards that direction, we can produce many Nobel laureates and excellent papers, thus the order should not be reversed. I hope research and papers can serve as a foundation for technologies that change the world."