Could South Korea’s AI Policy Shift From Industry Promotion to a People-Centered Approach?

Lee Hae-min’s nomination to become South Korea’s senior presidential secretary for AI future planning has raised the possibility of a policy shift toward the social costs of artificial intelligence.

Unlike her predecessor Ha Jung-woo, a researcher who moved directly from industry to the presidential office, Lee brings legislative experience. Her record includes a bill that seeks to protect workers and consumers as AI changes the economy.

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A country that tells its people to survive on their own during the AI transition is not the true AI powerhouse I have in mind.

Lee and Democratic Party lawmaker Lee Joo-hee introduced the Basic Social Act for Responding to the AI Transition on Aug. 14. The bill would require the government to establish five-year plans so that productivity gains from AI do not lead to falling employment and a weaker consumer base. It would also define rights to job retraining and livelihood stability during industrial change.

The proposal would allow the government to impose an AI transition contribution on companies that carry out large-scale layoffs because of AI adoption. The money would go into an AI Industrial Transition Support Fund, separate from the general budget, to address employment insecurity and the risk of unemployment. Companies that seriously implement employment protections could receive reduced or waived contributions, as well as tax support.

In a video posted on June 25, Lee said a country that tells people to survive on their own during the AI transition could not be a true AI powerhouse. She described a system that considers responsibility, authority and benefits for both companies and workers.

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We need a system that considers responsibility, authority and benefits together so that companies and workers can both make a smooth transition to the new era.

The Lee Jae-myung government has faced criticism that it moved quickly to promote the AI industry and build infrastructure while paying less attention to social consequences. Civil society groups have pointed to gaps in protections for labor and human rights in the Basic Act on the Development of AI and Creation of a Trust-Based Foundation, which took effect in January, and in the national AI action plan finalized in February.

Jang Yeo-kyung of the Institute for Information and Civil Rights said AI policy should move beyond technology and industrial promotion toward comprehensive social policy. She also said the government’s three mega-projects raised questions involving labor, the environment and the rights of local residents.

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AI must now be approached as comprehensive social policy, beyond the perspective of technology and industrial promotion.