AI Speeds Up Work in South Korea, but Productivity Remains Flat: "Rigid Organizations and Compensation Are the Reasons"

South Korea is experiencing a paradox where the adoption of artificial intelligence in the workplace is accelerating, yet overall productivity levels remain unchanged. This phenomenon suggests that simply implementing AI tools is not enough to drive economic output.

Industry experts and analysts point to deeply ingrained issues within South Korean corporate culture as the primary reasons for this stagnation. Key among these are rigid organizational structures that resist change and traditional compensation systems that fail to incentivize innovation or the efficient use of new technologies like AI.

These rigidities create an environment where AI tools, despite their potential, cannot be fully leveraged. The lack of flexibility in workflows and the absence of performance metrics tied to AI-driven efficiency prevent businesses from realizing the productivity gains seen in other economies. Addressing these systemic issues is seen as crucial for South Korea to benefit from its investments in AI and maintain its competitive edge.