Transforming the Future: The Impact of Artificial Intelligence in Korea
Selected Issues Papers, March 5, 2025
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Bibliographic details
- Authors: Soo Jung Chang, Hamin Lee, Sumin Lee, Samil Oh, Zexi Sun, Xin Cindy Xu
- Published: March 5, 2025
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229003193.018
Key findings
- Korea is among the global frontrunners in AI adoption.
- AI adoption is higher among larger, younger, and technologically advanced firms.
- AI holds the promise for boosting productivity and output, with effects more pronounced among larger and mature Korean firms.
- About half of jobs are exposed to AI.
- AI exposure is higher among female, younger, more educated, and higher income workers.
- Korea’s strong innovation and digital infrastructure highlights its AI readiness.
Firm-level adoption and productivity
- Adoption patterns:
- Higher adoption rates among larger firms.
- Higher adoption rates among younger firms.
- Higher adoption rates among technologically advanced firms.
- Impact on outcomes:
- AI can boost productivity and output.
- Productivity and output gains are more pronounced for larger and mature firms.
Labor market exposure and distributional effects
- Scope of exposure:
- About half of jobs are exposed to AI.
- Distributional patterns:
- Exposure is higher among female workers.
- Exposure is higher among younger workers.
- Exposure is higher among more educated workers.
- Exposure is higher among higher income workers.
Policy implications and recommendations
- Leverage Korea’s strengths:
- Build on strong innovation and digital infrastructure to accelerate beneficial AI adoption.
- Labor market and social policies:
- Enhance labor market flexibility to accommodate technological change.
- Strengthen social safety nets to support workers through transitions associated with AI adoption.
Transforming the Future: The Impact of Artificial Intelligence in Korea, Selected Issues Papers 2025/013, Soo Jung Chang, Hamin Lee, Sumin Lee, Samil Oh, Zexi Sun, and Xin Cindy Xu (March 5, 2025). DOI: https://doi.org/10.5089/9798229003193.018
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