Selected Issues Papers

Transforming the Future: The Impact of Artificial Intelligence in Korea

By Soo Jung Chang, Hamin Lee, Sumin Lee, Samil Oh, Zexi Sun, Xin Cindy Xu

March 5, 2025

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Format: Chicago

Soo Jung Chang, Hamin Lee, Sumin Lee, Samil Oh, Zexi Sun, and Xin Cindy Xu. "Transforming the Future: The Impact of Artificial Intelligence in Korea", Selected Issues Papers 2025, 013 (2025), accessed April 23, 2025, https://doi.org/10.5089/9798229003193.018

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Summary

This paper examines the economic impact of Artificial Intelligence (AI) in Korea. Korea is among the global frontrunners in AI adoption, with higher adoption rates among larger, younger, and technologically advanced firms. AI holds the promise for boosting productivity and output, though the effects are more pronounced among larger and mature Korean firms. About half of jobs are exposed to AI, with higher exposures among female, younger, more educated, and higher income workers. Korea’s strong innovation and digital infrastructure highlights its AI readiness, while enhancing labor market flexibility and social safety nets are essential to fully harness AI’s potential.

Subject: Aging, Labor, Labor market policy, Population and demographics, Production, Productivity, Technology

Keywords: Aging, AI, AI adoption, Artificial Intelligence, B. AI adoption, E. AI preparedness, Global, Growth, Labor market, Labor market policy, Preparedness index, Productivity, Profitability regression

Publication Details

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