This report analyses the impact of AI on Korea’s labour market from an internationally comparative perspective, and takes stock of Korea’s policies and institutions, against the backdrop of the OECD AI Principles for trustworthy AI. The objective of the report is to help policymakers in Korea better understand the risks and opportunities, and offer them a menu of options to help workers and employers make a success of AI, drawing on examples and best practice from across the OECD. In addition, by providing an in-depth analysis of the impact of AI on the Korean labour market, this report allows policymakers from across the OECD to draw lessons from the Korean experience to inform their own policies and institutions.
Artificial Intelligence and the Labour Market in Korea
Abstract
Executive summary
The Korean fertility rate has fallen to the lowest in the world and the population is set to halve over the next six decades. The old-age dependency ratio is projected to surge, putting considerable strain on the labour supply which, in turn, could threaten long-term productivity and economic growth.
While AI will not solve this challenge by itself, it may help boost productivity and address skills shortages resulting from an ageing workforce. By automating tasks that humans do, AI could help address skills shortages. Labour productivity could be improved if workers are augmented by these new technologies, allowing companies to do more with less. However, adoption of AI in Korea remains low by international standards: only 31% of SMEs in Korea are using AI, compared to over 50% in Germany – yet the share of employment in SMEs in Korea is particularly high (over 80%).
A lack of skills is cited by Korean SMEs as the most important barrier to AI adoption. Indeed, 30% of adults in Korea have no or limited experience with computers or lack confidence in their ability to use them. In addition, the use of AI in the workplace is increasing demand for high-level skills (including data analysis and interpretation) and social skills.
Korea already has a range of programmes in place to promote AI-related education and training, however the brain drain of AI talent continues to be a major challenge. To successfully address skills issues related to AI, it will be important that Korea: promotes more on-the‑job learning; ensures that training programmes are tailored to the needs of SMEs; and co‑ordinates effectively between ministries. To achieve the latter, Korea may want to consider setting up a specialised, overarching AI agency to align AI education and training policies with industrial policies.
In order to promote adoption and use, AI will also need to be safe and trustworthy. Korea is only the second country in the world, after the EU, to adopt comprehensive AI legislation, which aims to simultaneously boost innovation and trust in AI.
However, specific guidance on the use of AI in the workplace is currently lacking in Korea and there may be a need to develop more specific guidance for employers on issues such as: data protection and privacy in the workplace; bias and discrimination; automated decision making and algorithmic management practices; transparency; explainability; and accountability. In some cases, regulatory changes may need to be considered too.
While automation through AI could help address skills and labour shortage, it could also result in job losses for some workers. Across the OECD, there is little evidence so far of a negative impact of AI on aggregate employment. However, this report presents some new analysis, first-of-its-kind in that it distinguishes between types of AI, and which shows that in Korea some forms of more “traditional” AI appear to be associated with lower employment growth in full-time, permanent jobs for youth, low- and medium-educated workers, as well as in the manufacturing sector. This suggests that the benefits and risks of AI may not be equally distributed, and Korean policymakers will need to make sure that no groups are left behind.
Social dialogue, social protection and re‑employment services can play an important role in supporting workers through the transition. In particular, access to social protection for workers in non-standard forms of work in Korea could be strengthened. With regards to social dialogue, worker consultation appears less common in Korea than in other OECD countries. While the Korean Labour Standard Act stipulates that employers need to consult workers when they intend to alter the rules of employment in a way that is unfavourable to employees (i.e. leads to a deterioration in working conditions), it is not clear in practice whether this law would apply in the case of AI adoption in the workplace. Finally, Korea already uses AI in the provision of employment services and counselling to job seekers (Work24), thereby improving labour market matching, but services could further tailored to the specific needs of SMEs and job seekers.
Related publications
-
15 April 2026