SEOUL, May 21 (Korea Bizwire) – As generative AI tools increasingly take over routine coding tasks, South Korea’s software industry is witnessing a growing polarization in developer hiring, with demand surging for high-skilled talent and declining for junior-level programmers.
According to a new report released Monday by the Software Policy & Research Institute, the convergence of economic slowdown, reduced venture investment, and rapid adoption of AI in software development is reshaping the IT labor market.
The report, titled “Hiring Trends and Generative AI in Software Development”, warns that the ability to effectively utilize AI tools is becoming a key differentiator between junior and senior developers.
Global web traffic analysis by research firm SimilarWeb earlier this year found a 75% spike in the use of AI-powered tools by developers, signaling their rapid transition into essential work utilities.
The report is based on in-depth interviews with 26 industry experts, who predicted that the skills gap between junior and senior developers will widen, largely due to differences in how well they can harness generative AI tools.
While experts agreed that AI is unlikely to fully replace software developers—due to human strengths in contextual thinking, problem framing, and accountability—they noted that entry-level developers are at greater risk of partial replacement in routine tasks.
To remain competitive in the AI era, developers will need core competencies such as creative problem-solving, cross-disciplinary communication, AI tool fluency, and the ability to validate AI-generated outputs.
The report urges a policy shift in tech workforce training, calling on the government to redesign talent development programs. It recommends equipping junior developers with specialized knowledge in sectors like fintech, healthcare, autonomous vehicles, and smart factories to move beyond basic coding roles.
It also emphasizes the need to cultivate senior-level talent by supporting their participation in global developer communities and enhancing access to advanced AI development tools.
“Strategic policy adaptation is critical to address the widening skills gap and ensure the workforce evolves alongside the technology,” the report concluded.
M. H. Lee (mhlee@koreabizwire.com)