AI could potentially replace up to 13% of jobs in South Korea. (Image courtesy of Pixabay)
SEOUL, Mar. 14 (Korea Bizwire) – A recent study forecasts that artificial intelligence (AI) could potentially replace up to 13% of jobs in South Korea, totaling approximately 3.27 million positions, with a significant portion of these at risk within professional fields.
The Korea Institute for Industrial Economics & Trade released a report on March 13 outlining the pressing need for industrial workforce development in anticipation of the AI era.
Despite the current corporate adoption rate of AI standing at a modest 4%, advancements in generative AI technologies like ChatGPT and the rapid pace of AI improvements suggest the advent of the AI era is imminent.
According to the report, an “AI Exposure Index” analysis reveals that 13.1% of all jobs in the country, amounting to 3.27 million, are highly susceptible to automation by AI.
The manufacturing sector is expected to be the most affected, with potential job displacements estimated at 930,000, followed by construction at 510,000, and professional, scientific, and technical services at 460,000.
A staggering 59.9% of these AI-vulnerable jobs, approximately 1.96 million, are concentrated in professional occupations.
Notably, sectors with a high proportion of engineering and ICT experts, such as professional, scientific, and technical services (450,000 jobs) and the ICT sector (380,000 jobs), as well as the construction (430,000 jobs) and manufacturing (370,000 jobs) sectors, are predicted to face the highest risk of job replacement.
In the finance sector, 99.1% of at-risk jobs are among managerial and financial experts.
Song Danbee, a senior researcher at the institute, highlighted that the nature of labor displacement by AI is expected to differ significantly from the past job losses attributed to robotics, primarily affecting production roles.
AI is already causing tangible shifts in labor demand, especially among highly skilled development personnel holding advanced degrees.
In the early stages of AI adoption, the report suggests that addressing the demand for development personnel necessary for AI implementation is more urgent than the potential job displacement effects.
Currently, South Korea faces the immediate challenge of nurturing highly educated and specialized R&D talents in AI.
Considering the global trend, with the United States leading in AI innovation through private sector-driven talent development by companies like Microsoft and Google, and China focusing on high-level AI talent cultivation through state initiatives, the report recommends that South Korea should also expand private investment based on government policy support.
According to the “Global AI Index” released last month, South Korea ranks sixth worldwide in AI competitiveness. However, a closer look reveals that while the country’s government strategy ranks sixth, its human resources rank 12th, and private investment 18th, indicating a relative weakness in the private sector compared to government policy.
Song emphasized the need for proactive measures to address the potential future job losses, particularly in high-skill, high-wage professional sectors. She suggested that policies to overhaul educational systems, attract foreign talent, and enhance incentives for private investment should be strengthened to mitigate the impacts of AI on the job market.
Kevin Lee (kevinlee@koreabizwire.com)
