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AI adoption in Korea affects youth employment and boosts older worker opportunities

Published: 30 Oct. 2025, 15:59 Updated: 30 Oct. 2025, 18:54

A computer screen shows ChatGPT during an English teacher's class in Santa Clarita, California, on Aug. 27. [AP/YONHAP]

The rapid adoption of AI in Korea’s labor market has deepened a generational divide, shrinking youth employment while boosting job opportunities for middle-aged and older workers, according to a Bank of Korea (BOK) report released Thursday.

The analysis found that industries most exposed to generative AI tools such as ChatGPT saw the sharpest drop in employment among workers aged 15 to 29. Using National Pension Service data, the central bank compared employment trends before and after ChatGPT’s debut in November 2022, classifying sectors into four quartiles by AI exposure.

Between July 2022 and July 2025, the number of jobs held by young workers fell by 211,000, of which 208,000 were in AI-exposed industries. Over the same period, employment among workers in their 50s increased by 209,000, with 146,000 of those jobs in industries with high AI exposure.

By industry, youth employment in computer programming, system integration and management fell by 11.2 percent after the release of ChatGPT. The declines were steeper in publishing, down 20.4 percent, professional services, down 8.8 percent, and information services, down 23.8 percent.

The ChatGPT app icon is seen on a smartphone screen on Aug. 4 in Chicago. [AP/YONHAP]

The research team attributed the contrast to differences in job characteristics.

“Younger workers tend to perform routine tasks that AI can easily replace, while older workers are more engaged in roles that require organizational management and interpersonal skills — areas that rely on tacit knowledge and are harder for AI to replicate,” the report said.

It added that “employees with fewer years of experience saw a greater reduction in working hours due to AI use, suggesting a higher potential for substitution.”

No clear change in wages has been observed yet. The report cited wage rigidity as the reason, saying “short-term wage adjustments are difficult due to structural inflexibility.”

Still, the BOK noted that the spread of AI could, in the long run, lead to higher productivity and stronger labor demand.

“Improvements in efficiency driven by AI could create new industrial opportunities that benefit younger workers,” the team said, calling for policy support such as bolstering startup initiatives to help younger generations develop new job opportunities.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY JEONG JAE-HONG [[email protected]]