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  • 공급망 분절화의 경제적 영향 분석방법론 연구: 핵심광물에 대한 적용
    A Study on Methodologies for Analyzing the Economic Impacts of Supply Chain Fragmentation: Application to Critical Minerals

    The study examines methodologies for quantitatively analyzing the impact of global supply chain fragmentation and applies these approaches to scenarios involving critical minerals. It identifies two primary analytical approaches: ..

    Young gui Kim et al. Date 2025.5.16

    Economic security, International trade
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    Summary
    The study examines methodologies for quantitatively analyzing the impact of global supply chain fragmentation and applies these approaches to scenarios involving critical minerals. It identifies two primary analytical approaches: microeconomic and macroeconomic.

    Microeconomic methods provide detailed insights at the item or firm level but face challenges due to limited access to specific supply chain data. Macroeconomic methods, while suitable for industry- or national-level analysis, often rely on unrealistic assumptions when applied to item-level fragmentation. Despite the significant macroeconomic effects of disruptions in critical supply chains, existing item-level analysis techniques struggle to capture these impacts accurately. For instance, efforts to link item-level analysis with GDP using linear programming or inoperability input-output analysis often encounter limitations due to rigid assumptions about input-output structures. High-tech items, in particular, pose challenges due to their complex supply chain interdependencies and their significant influence on final production.

    To address these issues, the study proposes an integrated methodology combining machine learning techniques for microeconomic analysis with the OECD METRO model for macroeconomic evaluation. This approach considers key issues and transmission channels identified in previous research. The study also reviews critical mineral management policies in major economies such as the United States, European Union, China, and Korea. The United States identifies critical minerals essential for economic and national security through legislative measures like the 2020 Energy Act and has implemented strategies to strengthen North American supply chain resilience. The European Union has updated its critical raw materials list every three years since 2008 and enacted the Critical Raw Materials Act in 2024 to expand production capacity and enhance international cooperation. China, despite lacking a clear legal definition of critical minerals, strengthens its resource management through export controls and cooperation with resource-rich countries. Korea designated 33 minerals as critical through its 2023 Critical Minerals Securing Strategy, prioritizing 10 strategic minerals essential for industries like electric vehicles and semiconductors. However, Korea’s reliance on imports for most critical minerals highlights its vulnerability.

    The study conducts a vulnerability analysis of Korea’s critical mineral supply chains using indicators such as the Trade Specialization Index (TSI) and Herfindahl-Hirschman Index (HHI). It identifies high global supply chain concentration in minerals like cobalt, lithium, and neodymium, which are crucial for secondary batteries and electric vehicles. To assess geopolitical risks, it examines import trends from China across seven countries from 2017 to 2023. Sharp declines in imports of gallium, graphite, and rare earth elements suggest potential disruptions due to trade conflicts or export controls.

    The study employs a Dual-Stage Attention-Based Recurrent Neural Network (DA-RNN) model to predict the impact of critical mineral fragmentation on Korea’s exports of key items like batteries and semiconductors under three scenarios involving germanium, graphite, and rare earth elements. The results show significant decreases in export values across all scenarios. For example, restrictions on germanium imports led to a 3.9% decline in battery exports, while rare earth element shortages caused a 10.8% drop.

    Using the OECD METRO model, the study evaluates the macroeconomic impact of critical mineral fragmentation under two approaches: direct analysis of import disruptions (Approach 1) and integration of microeconomic results into macroeconomic simulations (Approach 2). The findings indicate that germanium fragmentation could reduce Korea’s real GDP by 0.15%, while graphite and rare earth element disruptions could lead to decreases of 0.14% and 0.89%, respectively.

    Based on these findings, the study recommends strengthening supply chain monitoring systems by integrating fragmented platforms across government agencies and establishing a centralized control tower. It also suggests diversifying procurement strategies, promoting R&D for substitute materials, and supporting SMEs through digital-based supply chain management platforms. Additionally, it emphasizes harmonizing policies with major economies to prevent over-securitization and redundant investments while expanding international cooperation for joint mineral exploration and development projects.
  • Online Leisure Activity and Digital Platforms in an Open Economy
    Online Leisure Activity and Digital Platforms in an Open Economy

    Digital platforms have become central to modern economies, as consumers increasingly spend leisure time online and platform firms transform user engagement into economic value. This study develops a multi-country, multi-industry o..

    Jiheum Yeon and Xiaohan Zhang Date 2025.11.14

    ICT economy, Digitalization
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    Executive Summary

    1. Introduction

    2. Data

    3. The Model

    4. Qualitative properties

    5. Numerical Simulation

    6. Conclusion

    Appendix

    References
    Summary
    Digital platforms have become central to modern economies, as consumers increasingly spend leisure time online and platform firms transform user engagement into economic value. This study develops a multi-country, multi-industry open economy general equilibrium model to analyze how web traffic—measured as visits to platform domains—can be converted into “data capital” through big data and AI algorithms and then used as a non-rival input for production and innovation.

    To ground the analysis, we construct a new dataset that links domain-level web traffic to corporate ownership across countries. The evidence reveals sharp cross country differences in the geographic origin of users. U.S. platforms attract a strongly international audience, with domestic users accounting for less than one-third of visits on average. Chinese platforms are more domestically concentrated, though TikTok stands out as a global exception with a highly international user base. Korean platforms, by contrast, rely overwhelmingly on domestic users, with less than ten percent of traffic originating abroad. Comparing these patterns with international service trade statistics, we find that countries with higher shares of foreign users are systematically more active in exporting online services.

    Qualitative analysis provides further insight into user behavior. Consumers allocate more time to a platform when they experience greater content satisfaction, which depends on both technological quality and country-specific content preferences. When the quality of foreign platform content improves, consumers reallocate time away from domestic platforms toward foreign ones. The extent of this shift is influenced by the elasticity of leisure demand, the substitutability across platforms, and the share of time already devoted to foreign platforms.

    The general equilibrium model allows us to simulate counterfactual scenarios and evaluate policy-relevant outcomes. Reducing cross-border frictions to foreign content raises welfare in all countries, primarily through the expansion of content variety and the reallocation of consumer time, while leaving the broader industrial structure largely unchanged. Lowering barriers faced by foreign platforms, such as discriminatory digital services taxes, increases platform revenues, encourages consumers to spend more leisure time online, and strengthens investment incentives for domestic platforms. Although the immediate welfare gains are modest, the longer-run effects on intangible investment and innovation are more significant. Enhancing the productivity of platform R&D generates asymmetric effects by expanding platform activity in the innovating country and reducing it in the non innovating country, yet global welfare increases because users everywhere benefit from improved content quality and diversity.

    Taken together, the findings highlight that the accumulation of web-traffic-based data capital is a central driver of platform growth. Policies that improve access to foreign content, the taxation of digital services, and foster innovation in platform R&D directly influence how consumer time is allocated and how platform firms invest in data-driven growth. For policymakers, the results suggest that lowering barriers to cross-border online activity can deliver substantial welfare gains, that digital taxation should be carefully designed to balance fiscal and innovation objectives, and that investment in platform R&D is essential for competitiveness in the global digital economy.

    In sum, this study demonstrates that digital platforms thrive not only on technological progress but also on the ability to accumulate and deploy data capital derived from web traffic. Recognizing the economic role of data capital is crucial for designing effective policies in the digital era, where market access, taxation, and innovation shape the international competitiveness of platform industries.
  • 주요국의 기후기술 스타트업 육성 및 해외진출 지원 전략과 시사점
    How Leading Countries Foster Climate Tech Startups and Support their Global Expansion: Policy Implications for Korea

    Carbon neutrality, as a long-term goal of the international community, can only be achieved through innovation in climate technologies. The scale of climate finance and clean energy investments has continued to grow, with new mark..

    Eunmi Kim and Soeun Kim Date 2025.10.02

    Globalization, Environmental policy
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    Summary
    Carbon neutrality, as a long-term goal of the international community, can only be achieved through innovation in climate technologies. The scale of climate finance and clean energy investments has continued to grow, with new markets recently emerging through the convergence of climate technologies with other advanced technologies such as artificial intelligence (AI). In this context, this study focuses on the growth and global expansion of startups, which are key economic players capable of driving innovation in climate technologies. In the study, a climate tech startup is defined as an unlisted company established within the past 10 years that has innovative ideas or business models related to technologies contributing to greenhouse gas reduction or climate change adaptation. Based on this definition, the study examines not only the roles of government support in leading countries but also success stories of promising climate tech startups. It also analyzes the ecosystem for climate tech startups and the effectiveness of R&D support programs in Korea, ultimately deriving policy implications for Korea.

    Chapter 2 analyzes the key strategies of major countries and promising climate tech startups. Across all the countries reviewed, governments are increasing financial support, encouraging private investment, and supporting networking hubs to connect climate tech startups with each other and other partner companies. In particular, Germany operates large-scale and long-term funds such as the DeepTech & Climate Fund (DTCF), targeting startups at the growth stage rather than those in the early phase. Japan offers incentives, including tax deductions, to encourage collaboration between startups and large corporations as well as investment from large corporations. On the other hand, the UK and the US, where the climate tech markets are largely driven by the private sector, operate specialized institutions for high-risk, high-reward technologies such as ARIA and ARPA-E. The UK promotes the commercialization of climate technologies through regional clusters and innovation networks, including Catapults and Living Labs. The US supports climate tech startups through initiatives like the Energy Program for Innovation Clusters (EPIC), which funds organizations within regional innovation ecosystems. Finland, where both the public and private sector are actively engaged, encourages startups to expand overseas from the early stages of their establishment.

    Promising climate tech startups around the world are growing and expanding their businesses into global markets by leveraging various government support programs, attracting private investment, engaging in technology collaborations and partnerships, and capitalizing on the capabilities of their founders. For example, companies such as TBM and Sila Nanotechnologies have successfully utilized a range of government programs from the R&D stage to commercialization for their growth and international expansion. Climeworks and Ascend Elements have secured some of the largest investments in the industry by demonstrating operational success with facilities applying their own technologies and by leveraging government matching funds. Sunfire, Clean Planet, and Coolbrook have achieved successful demonstration and commercialization through strategic partnerships with corporations, universities, and research institutions. Meanwhile, Carbon Clean and 44.01 have developed distinctive business models driven by the leadership and technical expertise of their founders.

    Chapter 3 explores the ecosystem and enabling environment for climate tech startups in Korea, along with an analysis of the effectiveness of government R&D programs. Climate tech startups in Korea account for only approximately 5% in terms of both number and total investment scale as of the 2015-2024 period. Over 70% of the total investment was concentrated in the early stages of investment (Series A and below), and the pace of investment attraction remains relatively slow. Notably, government support has led the growth of startups, while the investment shares of venture capital (VC) firms and corporate venture capital (CVC) entities remain comparatively low. Policies and institutional support for climate tech startups primarily focus on financial assistance and the development of a startup ecosystem. Through financial mechanisms such as the Climate Technology Fund, the government aims to stimulate private investment while strengthening the roles of technology demonstration platforms and regional innovation clusters including Green Convergence Clusters. In addition, programs supporting global expansion, such as an initiative to link the Creative Technology Solution (CTS) and Tech Incubator Program for Startup (TIPS), are recently being implemented.

    In order to evaluate the effectiveness of the Korean government’s support for climate technology development, the study analyzed the five-year outcomes of R&D support programs implemented between 2016 and 2018. The analysis focused on major climate technologies, including renewable energy, energy efficiency, and hydrogen and ammonia utilization technologies, selected based on their potential for emission reduction and trends in national R&D investment. An AI-based deep learning classification model was used to identify participants in major climate technology R&D support programs. Propensity Score Matching (PSM) and Difference-in-Differences (DID) methods were then used to estimate the impact. The results indicate that the R&D support programs had a positive effect on the financial performance of both startups and small and medium-sized enterprises (SMEs), with a notably stronger and more sustained impact observed in startups compared to SMEs. However, innovation outcomes showed a temporary increase only among SMEs, whereas social outcomes such as job creation were not statistically significant.

    Based on these findings, the study suggests policy directions necessary to effectively support climate tech startups in Korea. These include general strategic directions and stage-specific support strategies tailored to the R&D, demonstration, and growth/scale-up phases. Detailed implications for each are discussed below.

    Above all, it is crucial to enhance the understanding of climate technologies while ensuring the continuity and consistency of policy frameworks. Achieving this objective requires adopting a balanced and comprehensive perspective on climate technologies. Moreover, it is important to recognize that the perceptions of firms and investors are likely to shift only when there is a credible assurance regarding the long-term sustainability of government policies. The positive impacts of major climate technology R&D programs identified in this study further underscore the importance of sustained support for climate tech startups.

    By stage of technology development, the first priority in the R&D phase is to assess whether technology support adequately addresses the integration of different technologies and market demand, and to strengthen the role of universities. Evaluating whether existing policies sufficiently foster technological innovation through convergent approaches is crucial. From a market demand perspective, a detailed analysis should be conducted to identify which technologies are likely to attract significant investment incentives at specific points in time, and this information should be effectively utilized. In addition, measures to enhance incentives for university-based startup activities and collaborative research with external partners should be considered.

    Second, in the demonstration phase, it is important to encourage early-stage startups to pursue global expansion and to support regional networks. Given that the Korean economy has high export dependency and a small climate technology market, overcoming these limitations requires strategies that promote consideration of overseas market entry from the initial stage of idea development, similar to the Finnish model. Furthermore, strengthening the role of regional living labs and facilitating the adoption of technologies validated within the region at relatively low cost should also be prioritized.

    Finally, in the growth and scale-up phase, it is necessary to expand investment incentives for climate technologies and to support the strengthening of partnerships between firms. It is recommended that tax incentives for climate technology be introduced or enhanced to encourage participation from a diverse range of private investors. In addition, policy mechanisms should be developed to attract investment from well-capitalized firms and corporate venture capital (CVC) entities. For startups seeking global expansion, efforts to facilitate strategic partnerships with local companies in target markets should be further strengthened.
  • 북유럽 및 발트 3국의 탈러시아 경제 정책 성과 및 전망
    Achievements and Prospects of Economic Policies in Northern Europe and the Baltic States to Reduce Economic Dependence on Russia

    Since Russia’s invasion of Ukraine, the foreign policy orientation of Northern European countries, including Sweden and Finland, as well as the three Baltic States—Estonia, Latvia, and Lithuania—has undergone significant changes...

    Cheolwon Lee et al. Date 2025.09.18

    Economic relations, Economic cooperation Europe
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    Summary
    Since Russia’s invasion of Ukraine, the foreign policy orientation of Northern European countries, including Sweden and Finland, as well as the three Baltic States—Estonia, Latvia, and Lithuania—has undergone significant changes. Sweden and Finland, which had historically maintained a position of neutrality, joined NATO in 2023 and 2024, respectively. These developments, along with broader regional concerns regarding geopolitical instability and security, have contributed to the adoption of policies aimed at reducing political and economic dependence on Russia.

    The Baltic States, in particular, are actively diversifying their external cooperation channels across key sectors such as energy, trade, and investment. This trend aligns with the European Union’s REPowerEU strategy, which since 2022 has encouraged member states to reduce reliance on Russian fossil fuels—especially pipeline natural gas—through the expansion of liquefied natural gas (LNG) imports and the development of alternative energy sources. In addition to the energy sector, cooperation with Russia has declined across a wide range of industries, including electronics, machinery, agriculture, food, logistics, and maritime shipping. Concurrently, economic and strategic partnerships with the EU and the United States are being actively expanded.

    The defense and security sectors are also experiencing structural change. With Sweden and Finland’s accession to NATO and increased security needs among the Baltic countries, cooperation in defense production, procurement, and exports is expanding. South Korea has already enhanced its defense industry presence in Central and Eastern Europe, most notably in Poland, and similar opportunities are emerging in Northern Europe and the Baltic region. These countries are also positioning themselves as key participants in Ukraine’s reconstruction process, with high-level policy discussions—including international conferences—actively ongoing.

    In response to this shifting, the South Korean government is broadening its engagement through various initiatives, including increased grant assistance for Ukraine’s recovery, the strategic use of the Economic Development Cooperation Fund (EDCF), and the reinforcement of institutional and local cooperation networks. The Baltic States, having undergone their own transitions from former Soviet republics to EU member states, provide valuable reference points for Ukraine’s post-war reconstruction and potential EU accession. This creates opportunities for enhanced Korea–Baltic cooperation in sectors such as defense, energy, digital technology, and logistics.

    Recent shifts in Northern Europe and Baltic States policies toward Russia reflect a broader realignment in international partnerships. While each country varies in its approach—ranging from assertive responses by Finland and Lithuania to more moderate adjustments in Estonia and Latvia—public attitudes toward Russia have become increasingly critical since Russia’s invasion of Ukraine, and this has been reflected in concrete policy decisions in both the political and economic domains.

    These policy shifts are not short-term reactions, but rather are evolving into long-term strategies for external cooperation. Nevertheless, the full replacement of previously existing cooperation networks remains an ongoing challenge, underscoring the need for new, stable partnerships. In this context, Europe—with its high purchasing power and policy alignment with democratic economies—offers considerable potential for Korean companies seeking to expand their presence.

    This study examines the evolution of anti-Russia policies in Northern Europe and the Baltic States, analyzes changes in the regional demand for international economic cooperation, and identifies strategic implications for South Korea. In addition to a literature review, the study incorporates qualitative insights obtained through field research, expert consultations, and engagement with the Embassy of the Republic of Latvia to the Republic of Korea. Particular attention is given to the defense and infrastructure sectors, where future cooperation models may be developed. With the support of the Embassy of the Republic of Latvia to the Republic of Korea and the Investment and Development Agency of Latvia (LIAA), fieldwork was conducted in Riga from April 21 to 25, 2025, during which the research team carried out policy interviews and expert discussions to examine the trajectory of anti-Russia strategies in the Baltic States and explore the potential for expanding Korea–Baltic cooperation, including opportunities for Korean defense industries in local markets.

    Based on this analysis, the study presents the following four policy recommendations: 1) Expand South Korea’s EU cooperation framework to include Northern Europe and the Baltic region; 2) Identify strategic industries aligned with regional characteristics and development priorities; 3) Pursue integrated projects that address cross-national needs across the five countries; and 4) Develop mechanisms for joint participation in large-scale European initiatives through strengthened bilateral and multilateral partnerships.
  • 한·일 국교정상화 60년과 미래비전 2050
    60 Years of Korea-Japan Normalization and Future Vision 2050

    Korea and Japan normalized diplomatic relations with the signing of the Treaty on Basic Relations on June 22, 1965. In 2025, the two nations mark the 60th anniversary of this normalization. Over the decades, both countries have de..

    [KIEP] Jaichul Heo et al. Date 2025.08.29

    Economic cooperation, Political economy
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    Korea and Japan normalized diplomatic relations with the signing of the Treaty on Basic Relations on June 22, 1965. In 2025, the two nations mark the 60th anniversary of this normalization. Over the decades, both countries have developed their relationship through active exchanges and cooperation in politics, economics, society, and culture, underpinned by the shared values of liberal democracy and a market economy. However, historical disputes—such as the issues of wartime “comfort women” and forced labor, visits by Japanese officials to the Yasukuni Shrine, and territorial disputes over Dokdo (Takeshima in Japan)—remain unresolved. These tensions continue to negatively affect broader cooperation.

    Against this backdrop, this study focuses on envisioning a future- oriented relationship. This concept emphasizes overcoming historical entanglements that hinder progress on cooperative agendas. By considering changing circumstances surrounding bilateral ties, it presents a long-term vision for Korea–Japan relations looking toward 2050, based on comprehensive analysis across various fields.

    1. Diplomacy and Security: Future Vision 2050

    Korea and Japan must establish themselves as responsible partners in defending democracy and a rules-based order, while jointly shaping a regional multilateral security architecture. In the context of U.S.–China strategic competition, both countries should take on proactive roles as designers of world order working to prevent war. Key measures include: Building early warning systems, Enhancing operational information- sharing technologies, Expanding public diplomacy for mutual understanding, and Strengthening trilateral Korea–U.S.–Japan cooperation to ensure sustained constructive U.S. engagement.

    Looking ahead, if conditions emerge for North Korea to rejoin the international community and pursue economic development, Korea must already have a clear mid- to long-term strategy of proactive engagement. Japan’s role would be critical in this process. Coordinated engagement by Seoul and Tokyo would benefit both countries, requiring the establishment of a cooperative framework. Proposals include creating a Northeast Asia Development Bank to support North Korea’s reform, opening, and infrastructure development, serving as an institutional framework to manage the involvement of multiple state actors.

    On energy and climate issues, Korea and Japan should deepen cooperation to strengthen energy security and respond to the climate crisis. This includes joint LNG procurement and stockpiling systems, collaboration on Alaska LNG projects, and nuclear cooperation such as securing enriched uranium supplies. Strategies proposed are: Establishing a high-level intergovernmental dialogue, Creating joint investment and information-sharing platforms among private companies, Expanding next-generation talent exchanges, and Linking bilateral cooperation with regional/global initiatives such as ASEAN+3 and APEC.

    2. Advanced Technology and Economic Cooperation

    The study identifies humanoid robotics as a promising area for Korea–Japan collaboration, based on comparative analysis of long-term national strategies and mission-oriented R&D programs. A three-stage roadmap toward 2050 is proposed, covering both technological and market/ application cooperation. Such collaboration could not only solve social challenges and enhance global competitiveness but also serve as an innovative model spreading across Asia.

    In the economic field, supply chain cooperation is a top priority. Both nations face vulnerabilities due to high external dependence on energy, food, and minerals. With similar levels of economic development and shared values, Seoul and Tokyo should institutionalize economic security and industrial cooperation, eventually pursuing binding trade agreements.

    Financial cooperation is another priority. The two countries should extend or renegotiate the bilateral currency swap agreement, set to expire in March 2026, and expand its scale. A yen–won swap mechanism could also be used for trade settlements, broadening its utility.

    The study highlights green economy cooperation, focusing on hydrogen and ammonia. By sharing a vision for carbon neutrality by 2050, the two governments can lay the groundwork for long-term cooperation. The situation calls for “practical” agendas to address shared challenges in realizing a hydrogen society.

    In the blue (marine) economy, opportunities for cooperation include: Joint development of seabed resources (oil, gas, rare earths) and offshore wind expansion; Technology collaboration on smart ports, autonomous vessels, and maritime communication; and Building interoperable port automation systems and smart port networks.

    The upcoming termination of the Korea–Japan Continental Shelf Agreement demands a long-term vision. Considering China’s persistent claims and global climate change, Seoul and Tokyo could explore turning this area into a trilateral (Korea–Japan–China) cooperation zone, or even a “Korea–Japan–China+U.S.” arrangement, in light of the U.S.–China strategic competition. Korea should take the initiative to make the Joint Development Zone (JDZ) a space for cooperation, not competition.

    Finally, the study stresses the role of minilateral cooperation within platforms such as the RCEP and IPEF. Such arrangements can generate tangible outcomes despite limitations in bilateral institutionalization. Korea and Japan should use existing agreements strategically, strengthen RCEP-based Korea–Japan–ASEAN cooperation, and lead digital transformation initiatives. Proposals include: Leading discussions on rules of origin and carbon reduction in RCEP, Launching joint digital pilot projects, and Supporting ASEAN digital capacity-building.

    3. Social Dimension and People-to-People Ties

    Both Korea and Japan face demographic crises of ultra-low fertility, aging, and population decline, leading to regional extinction—i.e., the disappearance of local communities. Policies for 2050 must focus less on raising birth rates and more on structural adaptation. Cooperation could include policy exchanges, youth and startup collaboration, digital regional revitalization, and cultural-tourism projects.

    The study emphasizes the central role of youth in shaping future relations. Exchanges through culture, travel, and social media have brought younger generations closer than ever. However, asymmetries exist: in 2024, two-thirds of bilateral visitors were Korean, and Korean participation in student and youth exchange programs far exceeded Japanese. Reducing this imbalance is key to fostering mutual understanding.

    The role of the media is also crucial. Korean and Japanese media should move beyond sensationalism in reporting on historical and territorial disputes, providing balanced, context-rich coverage. To this end, proposals include creating a Korea–Japan Media Monitoring Committee and launching a joint “Future Journalism” program at leading universities of both countries.

    For cultural industries, three proposals are made: Government cooperation to expand exports of cultural content, Joint measures against illegal overseas distribution, and Support for Korean startups entering the Japanese market.

    4. Conclusion: Entering a New Era The year 2025 represents both reflection on the past 60 years and exploration of the next 60—effectively marking the first year of a new Korea–Japan era. Yet both countries face unstable political leadership and external pressures from “Trump 2.0,” with heightened tariff and alliance burden-sharing demands limiting space for long-term vision.

    Nevertheless, bottom-up dynamics are favorable: public perceptions are more positive than ever, and the two economies are deeply intertwined. Both nations share a vital interest in defending openness and free trade amid global protectionism.

    Therefore, the future vision must move beyond bilateral reconciliation, instead focusing on cooperative agendas that ensure the well-being, prosperity, and welfare of future generations. Despite domestic political risks and external challenges in 2025, the responsibility of the current generation to contribute to this vision is more urgent than ever.
  • Birth Control and Growth: The Role of Culture
    Birth Control and Growth: The Role of Culture

    This paper examines how culture influences the success of fertility-control policies. In the 1970s, many developing countries implemented birth-control measures grounded in the quality-quantity trade-off, yet their outcomes diverg..

    Minhyeon Jeong et al. Date 2025.08.24

    Economic growth, Industrial structure
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    Executive Summary

    1. Introduction

    2. The Model

    3. Theoretical Results

    4. Empirical Analysis

    5. Conclusion

    References
    Summary
    This paper examines how culture influences the success of fertility-control policies. In the 1970s, many developing countries implemented birth-control measures grounded in the quality-quantity trade-off, yet their outcomes diverged, e.g., Taiwan, Thailand, and South Korea achieved rapid fertility declines, while Pakistan, India, and Brazil did not. We propose that societal conformity—the degree to which individuals adhere to norms such as a government-endorsed ideal family size— determines how effectively policy incentives translate into behavior. Using a unified theoretical framework, we show that higher conformity amplifies the impact of birth-control policies on both reducing fertility and increasing investment in children’s education. Under empirically plausible conditions, this strengthened quality-quantity trade-off not only boosts short-run economic growth but also accelerates the shift from agriculture to manufacturing—measured by manufacturing’s employment share—even when manufacturing is more capital-intensive and benefits from human-capital-driven, labor-saving technologies. Finally, we validate these predictions with cross-country empirical evidence, underscoring the pivotal role of culture in shaping demographic change and economic development.
  • 중국의 핵심광물 공급망 강화 전략과 시사점
    China’s Critical Mineral Supply Chain Strengthening Strategies and Implications

    Together with the global expansion of projects to realize carbon neutrality, demand for key minerals—used as raw materials for renewable energy power generation such as solar panels and wind turbines, as well as for electric vehic..

    Joo Hye Kim and Pyoung Seob Yang Date 2025.08.14

    Economic security, Economic cooperation China
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    Summary
    Together with the global expansion of projects to realize carbon neutrality, demand for key minerals—used as raw materials for renewable energy power generation such as solar panels and wind turbines, as well as for electric vehicles (batteries)—is rapidly increasing. One major concern is that China holds a dominant position across all stages of the global critical minerals supply chain, from mining (ore and concentrate) to refining and smelting (basic and processed metals), and recycling (scrap). In particular, China’s influence in the refining and smelting sector is overwhelming, and the nation also exerts significant control over the mining stage for certain minerals. In response, major countries including the United States, the EU, Japan, and the Korean government are strategically working to establish stable supply chains in this area, aiming to reduce reliance on China (de-Chinaization) and to transition energy structures towards decarbonization. Notably, although Korea is a major manufacturer in advanced industries such as electric vehicle batteries and semiconductors, its dependence on China for refined and processed products of critical minerals like lithium, cobalt, and nickel exceeds 70%, posing significant vulnerabilities in its supply chain.

    China holds a dominant position as both a major supplier and consumer within the global critical minerals supply chain, but it exhibits various strengths and weaknesses at different stages. This study divides the supply chain into the stages of mining (ore and concentrate), refining and smelting (basic and processed metals), and recycling (scrap) to analyze China’s influence and vulnerabilities. It also examines strategies on the part of the Chinese government and enterprises to fortify their supply chains, drawing implications for Korea’s stable mineral procurement.

    Chapter 2 of the study analyzes China’s control measures and vulnerabilities in the global critical minerals supply chain. While China firmly dominates the refining and smelting stages of the global critical minerals supply chain, it is relatively vulnerable in the mining stage. This is because, despite holding some advantages in ore deposits and production, China’s domestic industrial demand is not fully met, resulting in a high dependence on imported raw materials. Moreover, China has an industrial structure that imports basic raw materials for refining and smelting, meaning that as metal production increases, the demand for raw material imports also rises accordingly. Additionally, our analysis comprehensively considers mineral-specific (basic raw material) reserves, production volume, external dependence, and the Trade Specialization Index (TSI) to evaluate China’s strengths and weaknesses, linking these to the strategies China pursues. China mainly enforces export controls on Group 1 minerals—such as rare earth elements, gallium, and germanium—over which it holds an absolute advantage, using these controls as tools for economic pressure or strategic leverage. For instance, in response to US semiconductor equipment export controls against China, China banned exports of gallium and germanium to the US. For Group 2 minerals (those with advantages in reserves and production but insufficient to fully meet domestic demand), export control systems are also applied, but the focus here is more on domestic supply and demand management. For example, China has tightened export controls on antimony since 2019 to stabilize domestic supply amid internal shortages and growing demand for home appliances in 2024. Meanwhile, minerals classified as Group 3 (disadvantaged minerals) such as copper, aluminum (bauxite), lithium, cobalt, and nickel show high Chinese market shares at the refining stage but suffer from insufficient domestic reserves and production, leading to heavy reliance on overseas sources for raw materials. Copper and aluminum are widely used as base minerals, while lithium, cobalt, and nickel are essential for core industries like secondary battery cathode materials. Any disruption in the supply of these raw materials could impact China’s overall industrial sector. In response, China focuses on domestic resource development, securing overseas mines, and recycling to strengthen resource security and supply chain resilience.

    Chapter 3 analyzes domestic mineral resource development and recycling strategies. In the area of domestic development, China strategically manages its mineral resources based on the Mineral Resources Law and the five-year National Mineral Resources Plan. In 2024, a comprehensive revision of the Mineral Resources Law was made to explicitly link resource security with national security, strengthening the legal foundation by introducing provisions for the stable acquisition of strategic minerals and supply chain stability. The National Mineral Resources Plan includes comprehensive strategies not only for domestic resource development but also for securing overseas resources, controlling protective minerals, and stockpiling. The plan (2016–2020) officially designated 24 strategic minerals. In particular, regarding domestic mineral resource exploration and development, various policies are in motion to promote exploration, innovate technologies, and foster mining industry clusters linked with related downstream industries. As of 2023, China’s investment in geological exploration and fixed assets in mining has increased for three consecutive years. Exploration investment has been focused on base minerals, but following policies to expand exploration of strategic minerals, new deposits of lithium, rare earths, and others have recently been discovered. Consequently, China’s global lithium reserves ranking rose from 6th to 2nd in the world. Additionally, China is expanding its influence in deep-sea resource development by securing exploration rights for gas hydrates in the South China Sea and polymetallic nodules in the international deep-sea CCZ (Clarion-Clipperton Zone) area.

    In the area of resource circularity, China is actively promoting recycling policies to realize a circular economy and ensure the stable supply of critical minerals. The government plans to establish waste recycling systems (collection and sorting → pre-treatment → refining and recycling) in key sectors such as waste home appliances and spent batteries by 2025, and aims to standardize these systems by 2030. This nationwide system construction and standardization is led by the China Resources Recycling Group (CRRG). The CRRG provides comprehensive solutions by integrating functions such as acquiring and merging leading industry companies, waste collection, processing, distribution, and standard setting. As of April 2025, the CRRG has established nine subsidiaries focused on areas like spent battery recycling and non-ferrous metal recovery, integrating and standardizing the previously fragmented systems across these fields. In the recycling sector, spent electric vehicle batteries have emerged as a crucial means of securing key minerals such as lithium, nickel, and cobalt. Although China has not yet fully built institutional frameworks and standardized markets for spent battery recycling, it has adopted advanced policies faster than any other country and continuously optimizes its regulations through trial and error. Major companies like CATL have already established a closed-loop recycling system and are expanding their influence across the entire supply chain through cooperation with domestic and international automakers. Accordingly, by 2050, China is projected to maintain unparalleled dominance based on the world’s largest spent battery processing capacity, raw material supply, and technological capabilities.

    Chapter 4 addresses China’s strategies for securing mineral resources overseas. The Chinese government identified the overseas acquisition of mineral resources as a key policy direction in the National Mineral Resources Plan (2016-2020). It pledged to mobilize various policy tools, including mining cooperation based on the Belt and Road Initiative (BRI), exploring joint investment models linking mining and infrastructure, establishing multilateral and bilateral cooperation platforms, supporting Chinese companies’ overseas mineral investments, and participating in global mining governance. Looking at global mineral (metal resource) investment trends since China officially launched the BRI in 2013, several points stand out. First, investment by private enterprises in metal resources has expanded significantly. Second, the primary investment regions have diversified from a previous focus on Australia to include Sub-Saharan Africa, South America, and East Asia. And third, while investments have continued to focus on base minerals, there has been a gradual increase in investments targeting critical metals such as lithium, nickel, cobalt, uranium, and niobium. Based on comprehensive support from the Chinese government, both state-owned and private enterprises have focused on securing base minerals (iron, copper, aluminum) and critical metals (lithium, nickel, cobalt, uranium, niobium) primarily in Sub-Saharan Africa, South America, and East Asia—key regions for China’s mineral supply. All the major minerals secured overseas by China belong to its group of disadvantaged minerals (i.e., those in which China is relatively weaker domestically). While every country secures its disadvantaged minerals through key supplying nations, China is particularly threatening because it invests aggressively enough to gain control over production within supplying countries. For example, in the Democratic Republic of Congo—where about 70% of the world’s cobalt ore production (with over 50% of global reserves) is concentrated—Chinese companies currently account for over 40% of cobalt ore production. Similarly, in Indonesia, which holds 42.3% of nickel ore reserves, 50% of mining production, and 42% of refining production, Chinese companies are estimated to control about 75% of nickel refining capacity. In other words, China has not only strengthened the raw material stages (ore mining and refining) of critical minerals such as cobalt and nickel—previously its weak links—but has substantially overcome these vulnerabilities. Examining the strategies behind these achievements, first, China has built multi-layered cooperation platforms (region-state, state-to-state) with key mineral-supplying countries in Sub-Saharan Africa, South America, and East Asia, creating long-term negotiation mechanisms with local governments and conducting regular consultations. Second, China established regional funds to provide large-scale financial support (indirect financing) for domestic state-owned and private companies investing locally. Third, it has developed mineral production and processing facilities within key countries to strengthen localization capabilities.

    Chapter 5 analyzes China’s export control strategies. China established its legislative plan for the Export Control Law in 2016 and began its enforcement on December 1, 2020. Subsequently, in 2024, China enacted the Regulations on the Export Control of Dual-Use Items and announced the List of Export and Import Administration for Dual-Use Items and Technologies, thereby strengthening its export control legal framework. We evaluate this as indicating China has established a complete legal foundation before the inauguration of the new US administration (Trump’s second term). Since the enforcement of the Export Control Law, China designated key mineral resources as dual-use items to reinforce resource security and, from 2023 onward, has actively used export controls on advantageous mineral resources as a strategic response card. In retaliation to US semiconductor equipment export controls, China restricted exports of major minerals such as gallium and germanium. On December 3, 2024, China implemented export bans specifically targeting the US on dual-use minerals including gallium, germanium, and antimony for the first time. Between 2023 and 2024, China implemented export controls citing the need to protect national security and interests. Some minerals, such as graphite and antimony, were controlled to address internal supply issues and to adjust the list of temporarily controlled items. However, after the inauguration of Trump’s second term in 2025, China escalated the weaponization of mineral resources more explicitly, enacting export control measures immediately upon announcement and clearly signaling these as pressure tactics against the US. For example, the export controls on seven types of Chinese rare earths directly pressured the US defense industry, a move publicly emphasized by Chinese media. Minerals designated as dual-use export control items by China generally correspond to strategic minerals in which China holds a reserve and production advantage, and many have already been designated or are expected to be listed. Coming into 2025, we see a tendency to convert minerals previously on the export licensing management list (e.g., titanium, molybdenum) into dual-use controlled items, or to expand the range of controlled items among existing controlled minerals (e.g., tungsten, rare earths). Controls have also been strengthened on minerals included in the dual-use control lists of other countries, such as indium, molybdenum, and bismuth. Going forward, additional minerals such as vanadium, fluorite (rare earth elements not yet controlled), magnesium (with an expanded control list), beryllium, and aluminum are highly likely to be added to the control list. Regarding the export trends of minerals designated as dual-use export control items between 2023 and 2024, such as graphite and antimony, China has sharply reduced exports of basic raw materials (ore and concentrate) while increasing exports of refined metals and processed metals with higher added value. This strategy is evaluated as an effort to maximize national benefits by shrinking exports of raw materials—whose end users and purposes are difficult to track due to multiple processing stages—and expanding exports of higher value-added finished products.

    Chapter 6 proposes the following response measures for the Korean government and companies based on the aforementioned analysis: Since Korea lacks deep-sea mining technology and experience, cooperation with technologically advanced countries such as the United States is necessary. Korea should also actively participate in establishing rational mining regulations that consider environmental protection to secure deep-sea resources. Korea needs to secure competitiveness in the battery recycling industry through a private-sector-led ecosystem construction complemented by institutional support from the government. Cooperation with Chinese companies in refining and smelting within major mineral supplying countries is essential. Regarding minerals such as fluorite and magnesium, which China is likely to attempt to control exports of in the future, the Korean government and companies need to proactively prepare by adjusting stockpiles and diversifying import sources. As China is expected to expand export controls not only on minerals themselves but also on refining and smelting technologies, it is urgent to promote cooperation with countries that have similar demands in refining and smelting sectors.
  • 아세안 주요국 여성 기업의 디지털 친숙도에 기반한 생산성 보완 연구
    Digital Quotient and Labor Productivity among Female-Led Firms in Major ASEAN Countries

    Empowering women and achieving gender equality are not just moral imperatives-they are global development goals. As one of the United Nations’ Sustainable Development Goals (SDG 5), the issue of gender equality has long been a ke..

    Jegook Kim et al. Date 2025.08.06

    Digitalization, productivity
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    Summary
    Empowering women and achieving gender equality are not just moral imperatives-they are global development goals. As one of the United Nations’ Sustainable Development Goals (SDG 5), the issue of gender equality has long been a key priority on ASEAN’s agenda. Since the 1988 Declaration on the Advancement of Women, and more recently through the 2022 Declaration on Promoting Women Entrepreneurship and the ASEAN Community Vision 2025, ASEAN has reaffirmed its commitment to women’s empowerment. Despite the growth in female labor force participation, women remain underrepresented in leadership roles in both business and politics across the region.

    Interestingly, ASEAN has a relatively high share of female-led firms compared to other regions-but here is the paradox: their performance, measured in labor productivity, tends to fall below the overall average, and even more so compared to other regions. That raised a critical question: Can digital quotient, as a measure of firms’ familiarity with and engagement in digital technologies, help close this productivity gap?

    This study offers both quantitative and qualitative evidence in response. In Chapter 2, we conduct descriptive and econometric analyses using World Bank data-including Gender Statistics; Women, Business and the Law; and the Enterprise Surveys-focused on Indonesia, Philippines, and Vietnam. The data reveal that male workers are generally more active and stable in economic participation. Male managers have greater access to digital and financial tools. Firms with digital engagement (i.e., having a website or using social media) report higher sales, while female-led firms show lower sales. Notably, female-led firms that are digitally active outperform their non-digital counterparts-offering a hint that digital quotient might be part of the solution. We go on to detail the empirical modeling using the World Bank Enterprise Survey to estimate labor productivity. A Cobb–Douglas production function is specified, with digital quotient and female leadership as key variables. OLS and quantile regressions show a significant negative association between female leadership and labor productivity, and a significant positive association between digital quotient and labor productivity. Importantly, the coefficient on digital quotient is large enough to offset the negative effect of female leadership in some contexts. However, the interaction term between digital quotient and female leadership is not statistically significant-suggesting that digital quotient may compensate for, but not amplify, labor productivity in female-led firms. Robustness checks using winsorized data, and propensity score matching confirm these results.

    In Chapter 3, we turn to real-world voices-via expert consultations and interviews with business leaders-to understand how digital quotient affects female-led firms. Motivations for digitalization ranged from surviving the COVID-19 downturn to expanding sales and strengthening innovation. Many firms relied on support from governments, NGOs, and donor programs. Most leveraged social media and e-commerce platforms, reporting increased sales, wider product portfolios, and better customer engagement. However, digital quotient was also associated with certain challenges, including technical issues, cybersecurity risks, and even unintended shifts in business models.

    Finally, this study offers policy implications tailored for ASEAN. Governments should promote digital literacy and quotient, support inclusive digital tools, and amplify success stories to inspire others. Regional efforts should aim to build localized digital quotient indicators and foster programs that reflect ASEAN’s unique entrepreneurial landscape.
  • The Impact of EU Enlargement and Brexit on International Migration
    The impact of EU enlargement and Brexit on international migration

    In recent decades, European Union (EU) enlargement has substantially altered the continent’s economic and political landscape by lowering barriers to trade, labor mobility, and capital flows. Migration emerges as a central factor..

    Yoonjung Kim and Young Jun Lee Date 2025.06.27

    International immigration, Migration
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    Executive Summary

    1. Introduction

    2. Descriptive Facts

    3. Gravity Models of International Migration

    4. Empirical Analysis

    5. Robustness Checks

    6. Conclusion References
    Summary
    In recent decades, European Union (EU) enlargement has substantially altered the continent’s economic and political landscape by lowering barriers to trade, labor mobility, and capital flows. Migration emerges as a central factor in this transformation, especially following the accession of Central and Eastern European countries. This enlargement has intensified interest among policymakers and researchers in the factors driving intra-European migration and its economic and social implications.

    This study specifically investigates the interplay between EU enlargement, the Freedom of Movement (FOM) agreements, and Brexit on labor mobility. Although EU enlargement has generally been associated with deeper economic and political integration, its most profound impact may lie in facilitating international migration. By distinguishing between the timing and impact of EU membership and the Freedom of Movement (FOM) agreements—often introduced at different times— the analysis provides a nuanced view of their respective roles.

    Employing a gravity model framework with Poisson Pseudo-Maximum Likelihood (PPML) estimation and a heterogeneity-robust difference-in-differences (DiD) approach, this study examines bilateral migration flows across 224 origin-destination country pairs. The results reveal that EU membership significantly increases migration flows, particularly from newer to older member states, indicating a pronounced east-to-west asymmetry. This effect remains robust after accounting for FOM implementation, and further robustness checks confirm the consistency of the findings under different policy timelines and the inclusion of external mobility agreements.

    Additionally, the study explores the impact of Brexit on return migration, uncovering a substantial rise in flows from the UK to EU member countries—especially those that joined after 2000—following the 2016 referendum. These patterns highlight the heterogeneous and asymmetric effects of different EU migration policies and suggest that Brexit exerts a stronger influence on return migration than FOM.

    Consequently, the findings highlight the importance of policy-specific analysis in capturing the complexities of migration responses to institutional changes within the EU.
  • 주요 선진국 과학기술 분야 규제 혁신 전략 분석 연구
    A Study on the Analysis of Regulatory Innovation Strategies in the Fields of Science and Technology in Major Advanced Countries

    As the competition for technological hegemony intensifies between the U.S. and China, major advanced countries around the world, including the U.S., are increasingly strengthening their strategies to protect and foster their techn..

    Yong-Chan Choi and Kyungmoo Heo Date 2025.05.28

    Economic security, Technical cooperation
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    Summary
    As the competition for technological hegemony intensifies between the U.S. and China, major advanced countries around the world, including the U.S., are increasingly strengthening their strategies to protect and foster their technologies and industries in core science and technology fields. The governments of individual countries are expanding R&D investment, reorganizing legal and institutional foundations for technology protection and fostering, and aiming to strengthen national security and industrial ecosystems as well as securing technological competitiveness.

    Major advanced economies, such as the U.S., the UK, and the EU, are formulating sophisticated policy frameworks aimed at promoting the growth of core science and technology fields. These frameworks involve easing unnecessary regulations while introducing new measures to safeguard critical technologies. Accordingly, it is essential to conduct a comparative analysis of these countries’ strategies for science and technology development, their approaches to fostering innovation ecosystems, and their industrial policy directions by examining the legal, institutional, and policy innovation strategies in major advanced countries.

    Amid intensifying competition for technological hegemony between advanced countries, each country is focusing on securing technological independence and sustainability. The U.S. is intensively fostering high-tech industries such as semiconductors, AI, quantum technology, and biotechnology through its “America First” strategy, and is also restricting foreign investment and controlling technology transfer. The UK is strengthening its strategic choices to overcome the problem of low economic growth following Brexit and improve the UK’s global competitiveness in core technologies, while pursuing R&D investment and regulatory reform in fields such as AI and quantum technology. The EU is working to convert its technological innovation policy, which used to be centered on individual member states, into a more common strategy at the EU level, and is carrying out large-scale R&D investment and regulatory reform to secure the EU’s global competitiveness.

    In addition, China has made science and technology independence its top priority in the face of U.S. countermeasures and is accelerating its own technology development in fields such as semiconductors, space-technology, biotechnology, and high-tech manufacturing. As such, major advanced countries are implementing strategic policies to strengthen their technological sovereignty and secure leadership in the global technology competition, underscoring the need for Korea to respond quickly and systematically. Korea also needs a strategic approach to respond to the intensifying global competition in technology, particularly by overcoming the limitations of existing systems and by innovating regulatory reforms tailored to the evolving technological landscape. There is a growing demand for the need to remove institutional barriers that hinder the development of science and technology and to establish a flexible regulatory framework that can accommodate new emerging technologies. In particular, as the perception that regulatory innovation is directly connected to national competitiveness spreads, now is the time for Korea to take active policy measures in response.

    In the fields of science and technology, changes in the R&D, production, delivery, and transaction methods of new technologies are leading to conflicts with existing laws and systems, as well as the emergence of new regulatory issues. The phenomenon of “regulatory delay”—caused by the absence of appropriate laws or regulatory gaps—is becoming increasingly severe, posing obstacles to the commercialization of new technologies by companies and research institutions. To address this, major advanced countries are making continuous and focused efforts to promote regulatory innovation. Analyzing these strategies can help us better understand how regulatory innovation is being implemented in the fields of science and technology in major advanced countries.

    By investigating and analyzing the implications, promotion strategies, detailed focus areas, and key characteristics of regulatory innovation strategies pursued by major advanced countries to achieve global technological leadership and foster innovative growth in related industries, this study aims to present effective response strategies for Korea to prepare the rapidly evolving future regulatory environment in the fields of science and technology, through a multifaceted analysis of regulatory innovation strategies by areas—that has not been fully addressed in existing research areas.

    The first step in investigating and analyzing regulatory innovation strategies in the fields of science and technology in major advanced countries is to select three advanced countries to be studied. The U.S. was selected for its leadership in science, technology, and industrial ecosystems, as well as its global influence on national regulatory innovation strategies. The UK was chosen for its pioneering role in regulatory innovation strategies in the fields of science and technology, and the EU was selected for its role in driving innovative demand in new industrial sectors. These three entities were identified as the major advanced economies to be included in the study.

    The next step is to select some fields to be investigated among the various fields of science and technology. In 2024, the Ministry of Science and ICT announced three major game changer technologies (AI-semiconductor, advanced bio, quantum), on the basis of which a total of four science and technology fields were selected: semiconductors, advanced biotechnology, AI, and quantum technology.

    The final step is to categorize various areas—such as institutions, governance, standards and certification, ethics, international cooperation, subsidies and tax incentives, experimental testing and scientific-technological capabilities, hostile response policies and strategies, and public/private protection (safety and security)—into three major groups; ① system and governance, ② Fostering and advancing the science and technology ecosystem and ③ technology security. Based on this classification, the study systematically analyzes the regulatory innovation strategies of major advanced countries in the fields of semiconductors, advanced biotechnology, AI, and quantum technology the perspective of these three categories.

    Subsequently, the findings of major studies that have investigated and analyzed regulatory innovation strategies in core science and technology fields - such as semiconductors, advanced biotechnology, AI, and quantum technology in the U.S., UK, and EU are summarized as follows.

    In the field of semiconductor, the three major advanced economies are working to promote semiconductor production and innovation within their borders, execute export control regulations, and respond to a supply-crisis caused by semiconductor shortages in order to protect their respective technological advantages. Each country is promoting innovative policies that include subsidies, tax incentives, and R&D policy funds in its innovative regulatory framework. The UK is strengthening its strategic choices to maintain and expand its strategic advantage in this sector based on its strengths in semiconductor design and intellectual property, compound semiconductors, and the world’s best research and innovation systems, with a relatively smaller amount of support than the U.S. and EU. In Korea, the so-called “K Chips Act” (amended by the Restriction of Special Taxation Act) was passed at the National Assembly plenary session in February 2025 to strengthen tax incentives for investment, such as the expansion of semiconductor companies’ factories. In addition, special laws for strengthening the competitiveness of the semiconductor industry and innovative growth are being discussed by the relevant committees of the National Assembly.

    In the field of advanced biotechnology, the U.S. has been continuously implementing innovation policies to improve the regulatory environment through the Coordinated Framework for the Regulation, the federal government’s basic guidelines for regulating biotechnology products. The UK is pushing for the government’s smart regulatory program to remove regulatory barriers and prepare for the future of regulatory frameworks by explaining regulatory issues related to engineering biology through RHC(Regulatory Horizons Council). In addition, the regulatory sandbox for engineering biology is being promoted through the EBRN. The EU is focusing on simplifying regulatory pathways through a series of measures to promote biotechnology and bio manufacturing in the EU, and is implementing measures to further promote the establishment of regulatory sandboxes to quickly launch them in the market. Korea has enacted and is currently implementing the Biotechnology Promotion Act, which aims to efficiently foster and develop biotechnology by establishing a solid research foundation and promoting the industrialization of biotechnological advancements. In January 2025, the National Bio Commission was launched, and the government unveiled the “Korea Bio Great Transformation National Strategy,” which aims to position Korea among the world’s top five biotechnology leaders by 2035 through sweeping transformations in infrastructure, R&D, and the bioindustry.

    In the field of AI, although the US has long led the world in AI technology and scientific advancement, its AI regulatory framework only began to take full shape in 2024. That year, President Joe Biden issued a new executive order titled the “AI Executive Order on Safe AI.” This executive order establishes new standards for the safety and security of AI, protects privacy, promotes civil rights, fosters innovation, and introduces stronger regulations to prevent the misuse of AI.

    The UK, through its National AI Strategy, has proposed short-, medium-, and long-term measures aimed at achieving three core priorities: investment in the AI ecosystem, ensuring that the benefits of AI are distributed across all sectors and regions, and establishing effective AI governance. Furthermore, to lead responsible innovation in artificial intelligence (AI) and maintain public trust in the technology, the UK became the first country in the world to publish an AI regulatory white paper titled A Pro-Innovation Approach to AI Regulation, which provides guidance on the use of AI. The UK government subsequently published a Government Response that compiled and addressed questions from various relevant institutions regarding the white paper, thereby presenting a foundational regulatory framework for AI. In addition, the UK is building its AI governance structure by establishing the world’s first government- supported AI Safety Institute and forming a Regulator Ecosystem composed of multiple regulatory bodies. The EU finally approved the “AI Act,” the world’s first comprehensive AI technology regulation, on May 21, 2024. The EU AI governance system has been established as a separate AI Board consisting of the EU Commission, its AI Office, and delegations from EU member states.

    Recently, Korea became the second country in the world, following the European Union, to enact an “AI Basic Act,” which is scheduled to take effect in January 2026.

    Korea’s AI Basic Act includes provisions for the establishment and implementation of a national AI master plan every three years, the formation of a national-level AI governance structure and support for the innovative development of the AI ecosystem through measures such as securing professional talent, designating AI industrial clusters, building AI testbeds, promoting AI data center policies, and facilitating international cooperation. The Act also addresses AI technology standardization, the establishment of ethical principles, the expansion of financial resources for AI industry promotion, and the prevention of AI-related risks, including administrative fines. It defines “high-impact AI” as a target for regulation and outlines obligations for transparency, safety assurance, and provider responsibility. However, generative AI is largely exempt from the major regulatory provisions.

    The US has adopted a strategic and agile approach to AI governance by issuing sector-specific guidelines and recommendations, executive orders, and fostering collaboration with companies and research institutions. This allows for a rapid and flexible response to the fast-evolving AI landscape. Similarly, the UK is pursuing a pro-innovation and flexible regulatory approach, introducing measures to address the misuse of AI and establishing regulations tailored to specific AI use cases. In contrast, the European Union has implemented a risk-based regulatory framework that classifies AI systems into categories such as “unacceptable risk/high risk/limited risk/minimal risk.” It imposes explicit regulatory obligations on AI systems falling under the “unacceptable/high-risk” categories, and includes provisions for general-purpose AI models. Korea, for its part, defines “high-impact AI” and outlines obligations related to transparency, safety, and provider responsibility. However, generative AI remains largely outside the scope of major regulatory provisions.

    In the field of quantum technology, the U.S. has developed a comprehensive and broad-based regulatory framework to maintain and develop global leadership. In particular, the U.S. seeks to enhance national security and economic competitiveness through a strategic regulatory framework for quantum research, development, and science and technology. The UK has outlined 13 Priority Actions under its National Quantum Strategy and established the Office for Quantum within the Department for Science, Innovation and Technology (DSIT), which regularly reports to the National Science and Technology Council chaired by the Prime Minister.

    In February 2024, DSIT’s RHC released a report recommending a regulatory policy for nurturing the UK’s innovation-friendly quantum ecosystem. The report is based on four core principles—proportionality, adaptability, accountability, and balance—and was prompted by the growing need for proactive discussions on the timing, scope, and form of regulations to ensure stable investment and development in quantum technology. The RHC made 14 recommendations emphasizing the need to establish strong governance, including the development of a quantum technology regulatory framework and the need for a regulatory framework based on standards, guidelines, and responsible innovation practices. DSIT is working on ways to identify regulatory requirements in the future, such as conducting horizon scanning for future regulatory requirements and adjusting proportional regulatory initiatives.

    The EU launched its Quantum Technology Flagship in 2018, following the issuance of its Quantum Manifesto in May 2016. This flagship initiative brings together research institutions, industry players, and public funding bodies to consolidate and expand Europe’s scientific leadership and excellence in quantum technologies.

    In the Strategic Research and Industry Agenda (SRIA) 2030 roadmap, the EU emphasizes the need to develop independent capabilities in quantum technology development and production to secure global leadership, protect strategic interests, ensure autonomy, and strengthen security—while avoiding dependence on third countries. The EU aims to establish the world’s leading ecosystem that translates lab-scale research into mass production across various scientific and industrial applications. Moreover, the EU highlights the importance of leveraging the economic and societal potential of quantum technologies to strengthen its position as a global player in this transformative field, ultimately positioning Europe as the world’s “Quantum Valley.” Korea’s Quantum Technology Industry Act, along with the National Quantum Strategy and various quantum initiatives, represents a set of innovative policy measures aimed at establishing a research foundation for quantum’s science-technology and systematically fostering the quantum industry. These efforts reflect the pursuit of multi-faceted innovation strategies across the key domains identified in this study. However, concrete strategic initiatives focused on identifying regulatory challenges in the quantum science and technology sector and anticipating future regulatory environments remain limited.

    As a strategic response to such regulatory innovation policies in advanced major countries, the following approaches can be considered.

    First, it is necessary to establish governance that support innovation across the broader economy while providing recommendations on the prioritization of regulatory reform in alignment with the regulatory environment in the fields of science and technology. Next, it is essential to proactively establish systems and strategies for scanning anticipatively regulatory environments and requirements in the fields of science and technology, and to strengthen integrated regulatory approaches starting from the R&D stage. Next, it is important to establish robust regulatory frameworks for core fields of science and technology and to advance innovation strategies—such as large-scale financial support—in order to secure technological leadership and foster a resilient and competitive ecosystem.

    Furthermore, there is an increasing need to enhance global cooperation strategies aimed at ensuring alignment and harmonization with international regulations, grounded in active participation in the development of global technical standards and regulatory frameworks. Additionally, enhancing regulatory sandbox systems in core fields of science and technology will be essential for promoting timely and flexible responses to technological innovation.

    As a final consideration, the rapid advancement of technology is increasing the need to redesign anticipative regulatory innovation roadmaps in established fields, and the cycle of these rolling plans is expected to become shorter. It is also a time to initiate discussions on setting the cycle of these rolling plans, establishing clear procedures, and defining the legal basis for their implementation.