South Korea explores basic income, profit sharing amid AI transition

South Korea's government is initiating discussions on income security measures, including the concept of basic income, to navigate the economic shifts brought about by artificial intelligence and automation. The "Basic Plan for Employment Stability in Industrial Transition," announced on June 9, signals a commitment to exploring ways to ensure that individuals can maintain a stable livelihood and pursue new opportunities regardless of their labor participation.

“

We will pursue ways to protect the foundation of life, irrespective of labor participation. We will examine compatibility with existing social security systems, funding sources, and public acceptance.

The government explicitly referenced Finland's basic income experiment as a potential model. Between 2017 and 2018, Finland provided 2,000 unemployed individuals with a monthly payment of 560 euros unconditionally. The experiment reportedly led to recipients finding employment six days faster than a control group and also showed improvements in mental health and life satisfaction.

"We will pursue ways to protect the foundation of life, irrespective of labor participation," the plan states, while acknowledging the need to examine compatibility with existing social security systems, funding sources, and public acceptance. A Ministry of Employment and Labor official emphasized the need for diverse considerations regarding expanding the social safety net and initiating concrete discussions among labor, management, and government on how to address income gaps during industrial and societal transitions.

“

There is a need for diverse considerations regarding expanding the social safety net. Labor, management, and government must begin concrete discussions on how to address income gaps during industrial and societal transitions.

The plan also touches upon the distribution of excess profits, a topic brought to the fore by companies like Samsung Electronics reporting record earnings. It proposes reinvesting the "dividends of transformation" into future generations' growth foundations to foster sustainable societal growth. To further these discussions, the Ministry of Employment and Labor is organizing a forum on June 14 titled "The Path to New Social Innovation in Step with AI Technological Innovation." The forum will broaden the scope beyond the previously mentioned "social solidarity fund" and will include discussions on distributing corporate excess profits, corporate investment in innovation, youth employment, and strengthening the social safety net, with participation from academia and labor and management representatives.

“

We need dialogue with all options open to adapt to the new era.