While South Korea is considered one of the victors in the era of infinite competition for artificial intelligence (AI), foreign media analysis suggests that a decline in jobs for young people is highly pronounced due to a preference for experienced workers that is more prominent than in other countries.

The Financial Times (FT) of the UK published an opinion piece on July 7 (local time) titled "How to stop AI from becoming the enemy of young workers." The article stated, "South Korea’s seniority-based hiring practices offer a lesson to other countries," and introduced the trend of declining youth employment in South Korea during the AI boom, along with potential countermeasures.

The newspaper explained that leading South Korean semiconductor companies, such as Samsung Electronics and SK Hynix, have accumulated immense wealth thanks to global demand for semiconductors and data centers. It added that workers at these companies, supported by strong labor unions, also share in a portion of the profits generated by the firms.

However, the report noted that these semiconductor profits do not spread outside the companies. It pointed out, "The South Korean economy has long shown a deep rift between 'insiders' who have secured stable jobs at large conglomerates and 'outsiders' with precarious jobs at small and medium-sized enterprises, and the benefits of AI are following this rift and even deepening it."

The rift between insiders and outsiders is also clearly visible across age groups.

Young 'outsiders' who have yet to establish a foothold in the labor market are one of the primary groups failing to enjoy the benefits of the AI boom.

According to Bank of Korea data from last year cited by the newspaper, 211,000 jobs for young people aged 15 to 29 disappeared over the past three years, while jobs for those aged 50 and older increased by 209,000 during the same period.

The decline in youth jobs was most significant in sectors heavily impacted by AI.

Notable examples include a 11.2% decrease in youth jobs in computer programming, system integration, and management; a 20.4% decrease in publishing; and a 23.8% decrease in information services.

The newspaper assessed that "a 'seniority bias' in hiring, particularly in the software sector, is already appearing in the United States," but added, "However, the trend in South Korea is much more brutal."

It expressed concern that this trend could serve as a warning for other national economies.

Nevertheless, the report noted that it is positive news that South Korea has secured surplus government funds due to strong sales from semiconductor companies. It mentioned that the government is planning to implement measures such as mega-project investments, policies to resolve inequality, and the creation of a 'future response fund' to support employment for those in their 20s and 30s.

The newspaper suggested, "One clear option is to use some of the excess profits to support companies in hiring and training young people, even if their labor cannot be easily monetized before they acquire expertise." It added, "A more imaginative policy could also involve expanding training and capital to 'outsiders,' such as the self-employed."

(Photo: Yonhap News)