OECD – Artificial Intelligence and the Labour Market in Korea, 2025

The Korean fertility rate has fallen to the lowest in the world, and the population is projected to halve over the next six decades. This demographic shift will lead to a surge in the old-age dependency ratio, putting pressure on the labor supply and potentially impacting long-term productivity and economic growth.

While AI alone cannot address these challenges, it has the potential to boost productivity, alleviate skills shortages, and help companies do more with less by automating tasks traditionally performed by humans. However, AI adoption in Korea lags behind other countries, with skills shortages being a major barrier. Promoting AI-related education and training, addressing the brain drain of AI talent, and ensuring effective coordination between ministries are crucial steps for Korea to successfully navigate the impact of AI on the labor market. Additionally, ensuring the safety, trustworthiness, and ethical use of AI, as well as addressing potential job displacements, will be important considerations for policymakers in Korea.