For better or worse, everyone should brace for impact in the age of AI.

More than half of the employee population of Korea will see their roles transformed by AI – or, worse, lose their jobs because of it.

A recent joint report by the Bank of Korea and the International Monetary Fund shines a spotlight on the tectonic shift AI is set to unleash upon the Korean workforce.

Jobs most at risk of AI displacement

The study dissected AI’s impact on jobs through two key lenses:

• Occupational AI exposure – how vulnerable a job is to AI replacement
• AI complementarity – how much human ingenuity shields roles from the threat of automation

The findings paint a picture of a workforce at a crossroads. Some are poised to ride the AI wave, while others risk being swept away.

• A striking 24% of Korean workers sit in the high-exposure, high-complementarity category, meaning AI is more likely to serve as a powerful ally, supercharging their productivity rather than replacing them.
• However, for 27% of workers in the high-exposure, low-complementarity camp, the outlook is far less rosy. Their roles stand on shaky ground, making them more susceptible to wage cuts and redundancy.

Demographic shifts mean AI’s rise is a double-edged sword.

Women, younger professionals, and highly educated, high-earning workers are more likely to find themselves in the AI sweet spot – high exposure yet high complementarity – suggesting that, for them, AI is a springboard rather than a stumbling block.

Professions standing to gain the most include doctors, corporate executives, professors, and financial specialists – roles where human expertise remains irreplaceable.

By contrast, jobs in accounting, clerical work, IT system management, and telemarketing find themselves in AI’s direct line of fire, as automation looms large over their future.

Also Read: Singapore employees doubt their bosses' AI implementation skills

The benefits of AI amid risks of economic slowdown

Beyond individual career prospects, however, the ripple effects of AI on the broader economy are profound.

The report estimates widespread AI adoption could crank up overall productivity by 1.1% to 3.2%, potentially adding a hefty 4.2% to 12.6% to GDP growth – an economic tailwind too significant to ignore.

However, these projections come with caveats: the pace of AI adoption and its precise economic impact remain uncertain.

What is clearer is that larger, more established corporations are likely to reap the most substantial gains from AI-driven efficiencies.

The urgency for AI adoption is underscored by Korea’s demographic challenges. With a declining birth rate and an ageing population, the country faces a potential GDP contraction of 16.5% between 2023 and 2050, according to United Nations forecasts.

However, AI integration could soften this blow, reducing the expected GDP decline to just 5.9% by supplementing human labour and bolstering productivity.

A key determinant of the success of AI adoption in Korea will be the ability of the workforce to transition from high-exposure, low-complementarity jobs to more AI-augmented roles.

Yet, historical data from the Korea Labor and Income Panel Study reveals that workers tend to remain in similar fields when switching jobs. Between 2009 and 2022, only 31% successfully transitioned to roles that offered greater protection from automation.

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Is Korea ready for the impact of AI on jobs?

On a global scale, Korea is better prepared for AI disruption than most advanced economies. The nation ranks 15th out of 165 countries in the AI Preparedness Index, excelling in “innovation and economic integration” at No. 3, and performing relatively well in “regulation and policy” (No. 18) and “digital infrastructure” (No. 18).

However, the report also highlights shortcomings in “human capital utilisation and labour market policies”. Further efforts are needed to maximise AI benefits.

The findings prove the necessity of strategic intervention. “Targeted policies are needed to enhance labour market flexibility through education and retraining programs while simultaneously strengthening social safety nets for vulnerable groups,” the report said.

Without a robust reskilling agenda and a stronger safety net, the AI revolution could leave many workers behind.

The call to action is evident for talent leaders: leverage the potential of AI while safeguarding employees from displacement.

The future of work in Korea will not be dictated by technology alone – it will be shaped by the policies and leadership that guide its integration.