South Korea to train 1 million in AI jobs to counter industrial shift impact

The South Korean government has unveiled a comprehensive plan to proactively address the employment impact of major industrial shifts driven by artificial intelligence and carbon neutrality. Titled the "Basic Plan for Employment Stability in Industrial Transition," the initiative aims to minimize job losses and create new employment opportunities amidst demographic changes like low birth rates and an aging population. The government believes that without preemptive action, the nation could face severe side effects, including widening job polarization.

A key component of the plan is the "Korean-style Canary Dashboard," slated for introduction as early as the second half of next year. This real-time monitoring system will function like the canaries historically used in coal mines to detect toxic gases, but will instead use AI to identify and warn about potential job threats. To achieve this, a "Korean-style AI Exposure Index" (K-AIOE) tailored to the country's job market realities will be developed, alongside an industrial transition job map. The government will continuously assess the timing and scale of employment shocks in high-carbon sectors like steel and petrochemicals, formulating customized countermeasures with relevant ministries.

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Korean-style AI Exposure Index

The government views the threat to jobs from AI as already present. It analyzes that as AI technology advances from generative AI to self-judging "agent AI" and physically acting "physical AI," job displacement is becoming a reality, particularly in simple and repetitive tasks. To equip the workforce with the necessary skills for this evolving era, the plan prioritizes education and training. The "National Tomorrow Learning Card" will support basic vocational training, while practical, skill-focused education and training will be expanded for unemployed and unskilled youth to become AI engineers and other in-demand professionals. Over 1 million individuals are expected to receive AI vocational training from this year until 2030.

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Korean-style Canary Dashboard

To mitigate economic and employment risks in regions heavily reliant on the phase-out of high-carbon energy industries, the government will proactively designate these areas as "Just Transition Special Zones." Regions concentrated with industries such as coal power, automobiles, petrochemicals, steel, and cement, including Chungnam, Ulsan, Yeosu, and Pohang, are expected to be designated for protection. These zones will receive support for employment stability, new industry development, and administrative and financial assistance. The social safety net will also be strengthened, with plans to provide temporary income support for workers facing job transitions or relocation who experience income gaps or wage reductions. The government cited Germany's "employment adjustment support fund" for approximately 40,000 coal industry and power plant workers who lost jobs during the coal phase-out as an example, where workers over 58 could receive income compensation until retirement age.

Furthermore, starting next year, the government plans to expand employment insurance to include platform workers (special employment form workers) who currently fall into a legal blind spot, basing eligibility on actual income rather than the previous requirement of working 15 hours or more per week. However, the plan's specifics regarding income support policies and funding sources remain to be detailed. Professor Jung Heung-joon of SeoulTech noted the plan's significance in broadly encompassing vocational training and social safety nets but emphasized the need to consider new revenue streams like robot or digital taxes, similar to other countries. A Ministry of Employment and Labor official stated that the overall budget level has not yet been finalized.

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Just Transition Special Zones