South Korea

Why South Korea Is The Most Resilient Nation In The Industry 5.0 Era

South Korea leads the Resilience sub-index, which measures how well nations are prepared for disruptions with decentralized and reliable supply chains, how well they have safeguarded critical infrastructure and services, investments in enhanced cybersecurity, and labor market adaptability.

South Korea is particularly resilient because of its large R&D investments, high digital literacy rates, supply chain resilience, and cybersecurity preparedness. Meanwhile, private investments in South Korea’s AI-related firms surpassed $8.6 billion by the end of 2024 — the 11th-highest investment level globally — according to Emerging Technology Observatory.

Resilience

How South Korea blends heavy R&D tech investments with private sector engagement

Proactively investing in R&D is essential for a resilient economy. South Korea is a leader in this regard, with the government announcing in April 2025 plans to increase research spending to a record $25.2 billion in 2026 to drive the development of AI solutions. Also set to take effect in 2026 is South Korea’s AI Basic Act, which will support government R&D, startups and talent in the AI field, and AI-related infrastructure.

The government is also working with the private sector to put AI research into practice. That includes a $120 billion public-private fund announced in September 2025 to accelerate AI adoption across sectors and infuse more resources into strategic markets like semiconductors, biotechnology, and energy. It also includes a pledge to support 30 major AI and innovation projects across robotics, cars, ships, drones, factories, and chips with financial investments and tax incentives.

South Korea is extending its advantage in semiconductor-related supply chains

Semiconductors are a lifeblood of the next industrial era, and serve as a vital component in everything from smartphones and computers to electric vehicles. Home to some of the world’s top chipmakers, South Korea’s semiconductor exports reached nearly $142 billion in 2024 — about 20% of its roughly $684 billion total exports.

The government announced a $23 billion support package for its semiconductor industry in April 2025. That’s in addition to a previous 2025 announcement of $34 billion in financial support to companies involved in strategic technologies such as chips and autos, amid intensifying global competition and protectionism.

These investments are part of a broader ambition to reduce South Korea’s dependence on certain countries to 50% or below by 2030 for key products. By 2027, nearly $40 billion will be invested to expand domestic production, diversify imports, advance public stockpiling, and strengthen and protect key technologies.

Additionally, a local semiconductor company and an electronics company are investing in a major semiconductor production complex set for completion by May 2027.

Strong cybersecurity and digital infrastructure keep South Korea’s economy humming

Cyber resilience is vital for any healthy and resilient economy. South Korea’s AI Basic Act includes national-level policies for AI development, industry growth, and transparency and safety obligations. In March 2025, Korea created a new interagency body to address national security threats posed by AI.

Strong cybersecurity measures help protect a sweeping 5G internet network: South Korea has 593 5G base stations per 100,000 inhabitants, the highest rate in the world and significantly more than an OECD average of just 100 base stations per the same number of inhabitants. The country also plans to launch a 6G internet network in 2028 in a bid to emerge as a frontrunner in next-generation wireless technologies.

Talent

South Korea’s cutting-edge tech meets a skilled digital workforce

South Korea boasts one of the most highly trained workforces in the world. Several training initiatives already are set to upskill workers in AI: An $80 million initiative announced in 2024 aims to improve digital skills for adults aged 30 and older. The government also is funding a 2025 program to upskill public sector workers in AI. Elsewhere, a local university is collaborating with one tech giant to offer underrepresented populations like women, unemployed graduates, and laid-off mid-career workers AI and cloud computing programs to bolster local workforces. The government also has a collaboration with UNESCO that offers digital upskilling initiatives for young professionals.