Can company-run graduate schools fuel South Korea’s tech ambitions?

When Mr Shin Dong-hwa, a senior researcher at LG Energy Solution, began classes at

LG AI Research’s new graduate school

, his focus was not on an abstract thesis but on a stubborn challenge from his lab: How to use artificial intelligence to accelerate cathode material design at the atomic level.

“In the workplace, I rarely had the chance to study theory and mostly focused on applying pre-built models,” said Mr Shin, who graduated from the programme in February.

“Through the master’s programme, I was finally able to study AI theory and state-of-the-art model structures in depth, gaining knowledge and ideas I can now use directly in my work.”

A new model: company-led higher education

That kind of real-world problem-solving lies at the heart of LG’s experiment. In 2022, LG AI Research opened its graduate school programme, and in August 2025, it became the country’s first government-accredited, corporate-run AI graduate school.

The institute is designed to help curb brain drain while building advanced skills critical to LG’s future – at a time when the global race for AI specialists is intensifying and even tech giants are struggling to secure talent.

The accredited master’s programme is set to begin next March. LG said it is also working with the Education Ministry to gain approval for doctoral courses, while ensuring that employees who enrolled before accreditation can still be granted degrees.

Unlike conventional universities, admission requires employees to bring well-defined problems from their factories, labs or design teams; solve them with AI within a year – over three semesters – and reintegrate the solutions into their work.

“Applicants must present research projects they are pursuing or plan to pursue within the company, which are carefully reviewed not just for ambition, but also for feasibility,” an LG AI Research official explained, stressing that the programme’s focus is on producing tangible outcomes rather than offering a “flashy title”.

The programme also highlights how LG can give participants access to cutting-edge equipment and data rarely available in universities, while applying AI directly in fields such as materials design and smart manufacturing.

“That’s the key differentiator from universities. To compete globally, Korea needs talent trained to tackle industry-specific problems across manufacturing, materials and design,” the official added.

Balancing real-world needs with academic rigour

Not everyone is convinced. Some academics welcome the initiative as one way to address South Korea’s intensifying talent race, but also question whether companies can match universities in providing broad, theory-grounded education. Corporate schools, they warn, may lean too heavily on project-based problem solving at the expense of long-term fundamental research.

Professor Lee Kyoung-jun, an AI and business professor at Kyung Hee University, said: “A corporate graduate school can deliver strong, one-time lectures from practitioners. But sustaining a rigorous curriculum is different. Universities exist for independent inquiry. Companies risk narrowing the focus too much to their immediate needs.”

He noted that companies already work closely with academia through joint research projects and by offering degrees in partnership with universities.

There are broader concerns, too. South Korean universities depend heavily on government research grants, and if corporate institutes also begin competing for the same limited funds, already strained budgets could face additional pressure.

South Korea’s battle to train AI experts

LG’s graduate school is the first of its kind in South Korea – and possibly the world. Its launch was made possible by the Special Act on Innovation for Advanced Industrial Human Resources, a law that took effect in January allowing companies to establish in-house graduate schools. Previously, companies were permitted to run only in-house universities that granted degrees equivalent to junior colleges or four-year universities.

With the industrywide shortage of talent, other conglomerates are reportedly weighing similar ideas. Hyundai Motor and SK Hynix have explored the in-house graduate school model.

SK Hynix, the world’s second-largest memory chipmaker, has run its own employee training programme, SK Hynix University, since 2017. Although not an accredited institution, it offers short-term courses and workshops to nurture semiconductor experts.

The firm also sponsors bachelor’s programmes in semiconductor education at Korea University, Sogang University and Hanyang University.

Samsung Electronics, Korea’s largest conglomerate by revenue, operates the country’s first accredited in-house university, the Samsung Semiconductor Institute of Technology (SSIT), established in 1989. While SSIT offers a bachelor’s programme, its master’s and doctoral tracks are operated in partnership with Sungkyunkwan University.

An Education Ministry official said: “We expect to combine advanced, technology-focused education with academic research, enabling companies to take the lead in training specialised professionals needed in high-tech industries.” THE KOREA HERALD/ASIA NEWS NETWORK