AI's Job Wave: South Korea Urges 'Social Dialogue' Amidst Worst-Case Fears

The rapid advancement of artificial intelligence poses a significant threat to the South Korean job market, with the central bank estimating that over half of all jobs are vulnerable. A substantial 27% of these jobs could be replaced or see reduced incomes due to AI adoption.

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The future that could be brought about by the AI transition is highly uncertain, but the fact that the era is approaching is clear, and it is also self-evident that we must prepare now. This is why social dialogue, a process of gathering wisdom for that preparation, is essential.

In response to this looming challenge, South Korea's Economic, Social and Labor Council (ESLC) is spearheading efforts to foster social dialogue. The council believes that collective choices and commitments from individuals, businesses, civil society, and the government are crucial for navigating the AI era. Kim Ji-hyung, the chairman of the ESLC, stresses the urgency of this dialogue, advocating for preparation that considers even the "worst-case scenarios," such as widespread unemployment and increased economic polarization.

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In terms of responding to future problems through social dialogue, I believe it is right to prepare with 'the worst situation' in mind. I think we need to prepare for problems like temporary mass unemployment and polarization.

Kim draws inspiration from Germany's "Labor 4.0" initiative, which involved extensive public discussion and resulted in concrete policy proposals. He envisions a similar process for South Korea, where societal dialogue identifies key questions and collaboratively seeks solutions before they are presented as policy agendas. This approach aims to ensure that policies are well-considered and address the core issues arising from the AI transition.

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The social dialogue of the past tended to flow in a yes/no direction because it was a process of discussing whether to choose the government's labor policy direction. Therefore, if there is a task, we intend to ask enough questions about the issues necessary to solve it, find answers through social dialogue, and then present them as policy agendas.

The conversation also touches upon the distribution of profits generated by AI-driven industries, referencing recent labor disputes at Samsung. Kim suggests that establishing unified standards and engaging in tripartite discussions involving labor, management, and the government are necessary to address these complex issues. He also acknowledges the growing concerns surrounding the introduction of physical AI, such as robots like "Atlas," and calls for a balanced approach that involves labor-management agreements and employment impact assessments.

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The 'Labor 4.0' social dialogue during German Chancellor Angela Merkel's administration is an impressive example of a question. In about 1 year and 7 months from 2015 to 2016, over 50 civic groups and nearly 15,000 citizens participated in about 5,400 discussions, which were conducted in two streams.