[Public Voices] Path to Creating Wealthy Scientists and Engineers Has Opened

Amendment to the Special Act on Government-funded Science and Technology Research Institutes Passed the National Assembly
Expanding Pathways for Startups by Government-funded Researchers
Paving the Way for Turning Scientists’ Dreams into Industr

This is an era in which science and technology determine the fate of nations. To attract talent to the science and technology sector, there must be many examples showing that simply excelling in research can lead to economic success. One of the most challenging yet attractive ways for those in science and technology to achieve significant economic rewards is through founding a startup based on their own developed technology. However, there is no need to demand that researchers excel not only in research, but also in business management. Researchers should focus on conducting outstanding research, while businesses should be led by individuals who possess both passion and managerial competence.

Recently, a meaningful institutional change occurred, broadening precisely that path. The National Research Institutes Act, an amendment containing special provisions to the Act on the Prevention of Conflict of Interest for Public Officials, which had previously restricted technology startups launched by government-funded research institutes, has been passed by the National Assembly. As a result, researchers who start companies based on public technology can now, even if they are not the CEO, hold stocks or equity in the company in line with the value of the technology they developed. It has also become possible for these researchers to provide advice or consulting to startups, or take on specific roles, as a way to spread the results of their research.

This carries significance beyond mere regulatory easing. Since the Act on the Prevention of Conflict of Interest came into effect in 2022, there have been ongoing concerns in the field that when government-funded research institute researchers engage in entrepreneurship or activities to commercialize technology, such actions—like holding equity—could be interpreted as a conflict of interest. This created a paradox where researchers, who should be spreading the outcomes of their research into society and industry, faced restrictions when trying to commercialize their own achievements. The recent special legislation is meaningful because it preserves the necessary principles for public officials while opening opportunities for researchers to rightfully spread their work.

This change did not take place overnight. The National Research Council of Science & Technology (NST) continuously identified issues in the process of technology commercialization at research institutes and promoted them as institutional reform agendas. The Ministry of Science and ICT empathized with the necessity and advanced policy discussions. Assemblymen Cho Incheol and Hwang Jungah of the Democratic Party took the initiative in sponsoring the amendment, which eventually passed through the united will of the National Assembly.

This institutional change is not just for individual researchers. If a startup is founded with technology developed by several researchers, those who contributed can jointly share in the company’s growth and returns. This can act as a driving force to invigorate not only individual startups but also team and cooperative research. Furthermore, as the burden for researchers to forego their research careers in order to start companies decreases, the chances increase that one researcher or team’s achievements will lead to multiple rounds of technology commercialization and startup creation, rather than ending with a single company.

This special provision does not mean that unchecked activities for private gain are allowed. Researchers belonging to public research institutes must faithfully perform their core R&D duties and responsibilities as public servants, and within those bounds, undertake transparent and prudent technology commercialization activities. As institutional freedom has grown, so too must the sense of responsibility for both researchers and institutes.

A virtuous cycle in which excellent research leads to innovative technology, innovative technology gives rise to companies, and successful companies return fair economic rewards to researchers, will foster a society where young people aspire to careers in science and technology. If achieved, wealthy science and technology leaders could become not just examples of personal success, but symbols of South Korea’s scientific and technological competitiveness.

The long-blocked channel has finally opened. I hope this small stream will become a powerful river that connects the achievements of laboratories to the market and the dreams of science and technology professionals to industry.

Byun Kwon Min, Director of Convergence Strategy at the National Research Council of Science & Technology

This content was produced with the assistance of AI translation services.