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Home > Industry

The AI Paradox: Half of Korean Office Workers Report Hiring Slumps and Downsizing Fears Amid Automation Surge

Global Economic Times Reporter / Updated : 2026-05-04 17:39:36
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SEOUL — As Artificial Intelligence (AI) cements its role in the modern workplace, the initial promise of increased efficiency is being overshadowed by a growing anxiety among employees. A recent study reveals that more than half of South Korean office workers believe AI adoption has led to a noticeable decline in new hires, while nearly a quarter report that their companies are already moving toward structural downsizing.

According to a survey released on May 3 by "Gapjil 119," a prominent labor advocacy group, the integration of AI is fundamentally reshaping the South Korean labor market. The survey, conducted by Global Research on 1,000 office workers nationwide, found that 47.1% of respondents are already working in environments where AI—such as business chatbots and generative AI tools—has been officially introduced or is currently being implemented.

The Shrinking Job Market

The most striking finding of the report is the perceived impact on employment. Among the respondents, 52.4% stated that the recruitment of new employees has decreased following the introduction of AI. This suggests that "labor-saving" technology is living up to its name, but at the cost of entry-level opportunities and job security.

Furthermore, for those already working in AI-integrated environments, the threat is even more immediate. Approximately 23.8% of these workers reported that their companies are either currently undergoing or planning workforce reductions and restructuring. Notably, this trend was most prevalent in large corporations with more than 300 employees, particularly affecting non-regular workers earning less than 1.5 million KRW per month. This highlights a "digital divide" where the most vulnerable members of the workforce are the first to be displaced by automation.

Increased Intensity, Not Leisure

Contrary to the utopian vision that AI would grant workers more leisure time, the survey paints a different picture of daily labor. A majority of respondents (54.1%) reported that their workload remained unchanged despite AI assistance. Even more concerning, 26.7% of workers claimed their workload had actually increased.

Experts suggest that instead of reducing the burden on humans, AI is being used to "optimize" output, often leading to higher expectations and the assignment of additional tasks to fill the time saved by automation. "AI is being used to squeeze more productivity out of the remaining staff," a representative from Gapjil 119 noted. "For many, the technology has become a whip rather than a tool."

A Call for Policy Inclusion

The report warns that sectors with high concentrations of low-wage, non-regular roles—such as call centers and customer service departments—are at the highest risk of aggressive restructuring. As AI handles routine inquiries, human workers are being pushed out or forced into higher-intensity roles without corresponding pay increases.

Gapjil 119 emphasized that the current trajectory of AI adoption lacks a human-centric approach. The organization urged the government and corporations to include labor voices in the design and implementation phases of AI policy. "The benefits of AI must be shared, not used solely as a mechanism for cutting labor costs and intensifying the pressure on those who remain," the group stated.

As South Korea continues to lead the world in technological integration, this survey serves as a stark reminder that without proper safeguards and inclusive dialogue, the AI revolution could deepen social inequality and destabilize the livelihood of the working class.

[Copyright (c) Global Economic Times. All Rights Reserved.]

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