TLDR: South Korean workers are increasingly anxious about job security, fearing displacement by artificial intelligence and the impact of a slowing economy. Recent surveys reveal widespread concern, with a significant portion of the workforce anticipating job losses or changes due to AI and automation, prompting calls for robust government and corporate strategies to manage this transformative period.
South Korean workers are facing a period of profound uncertainty, grappling with the dual pressures of rapid artificial intelligence (AI) transformation and a challenging economic downturn. This sentiment of insecurity is widespread, with many fearing job displacement and significant changes to the labor market.
Recent data underscores these anxieties. A survey conducted by corporate education company HUNET revealed that nearly half of the 546 office workers surveyed felt ‘uncertain about their jobs and the employment environment in the coming year.’ The primary source of this anxiety was the slowdown in industrial and market growth, cited by 51.6 percent of respondents. This was closely followed by the spread of AI and automation (34.1 percent), organizational restructuring (33.1 percent), and changes in job design and roles (20.9 percent).
Individual stories reflect these statistics. Lim, a 30-year-old content creator in Seoul, expressed her unease after her company scrapped plans for new hires due to financial difficulties. ‘The company says it’s going through tough times, and there’s a directive to cut even the smallest expenses,’ she stated. ‘Everyone keeps saying AI will replace everything. Honestly, I’m scared that the kind of work I can do might be replaced. As things get harder, they might start cutting staff too.’ Lim is now considering retraining as a social worker, believing demand for such roles will remain strong despite AI advancements.
The impact of AI on employment is a significant concern across all demographics. A September 17 study by the Korea Press Foundation, involving 1,000 adults aware of generative AI, found that a striking 87.2 percent were worried that AI might replace their jobs. Lee Eun-young, managing director of Samil PwC Business Research, highlighted the unique nature of this disruption: ‘Unlike previous technologies, AI’s limitless scalability is expected to impact even knowledge-based jobs that require advanced degrees or professional certifications. This signals a fundamentally different kind of disruption in the labor market compared to the past.’
Specific sectors are projected to face direct impacts from AI-driven employment shocks. According to Statistics Korea data, manufacturing (3.72 million workers), construction (1.37 million), transportation and warehousing (770,000), and accommodation and food services (1.25 million) are particularly vulnerable, especially those with high proportions of day laborers. Yuval Harari’s warning of ‘useless humans’ is no longer seen as a distant future but a present concern, as AI moves beyond a curiosity to become a core industry.
Conversely, AI is expected to increase demand for occupations requiring higher levels of education, such as humanities and social science research, legal specialists, corporate management, administrative, clerical, and educational fields, as noted by the Korea Institute for Industrial Economics & Trade. However, the critical question remains: how can low-skilled workers transition into high-value-added jobs? The Bank of Korea (BOK) report, created jointly with the International Monetary Fund, projected that 27 percent of Korean workers will lose their jobs to AI, while another 24 percent will receive a productivity boost. The report also indicated that AI adoption could significantly mitigate a projected 16.5 percent GDP decline between 2023 and 2050 (due to low birthrates and aging) to just 5.9 percent, provided there’s a successful transition of workers to AI-complementary roles.
Despite the urgency, South Korea’s labor market policies to address these changes are described as ‘surprisingly inadequate and ad hoc.’ Experts call for a strengthened social safety net, including expanded unemployment benefits, reskilling and technical training, and career counseling. There’s also a recommendation for the government to attract key AI talent from overseas through specialized visas, aligning with Seoul’s vision of becoming Asia’s AI hub, as discussed during President Lee Jae-myung’s recent meetings with BlackRock CEO Larry Fink.
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As a HUNET official summarized, ‘Although employees feel anxious due to economic uncertainty and technological change, they are also calling on companies to go beyond short-term survival and take responsibility for preparing for the future.’ The nation faces the complex task of harnessing AI for economic growth while ensuring a just transition for its workforce.
