[Insight & Opinion] The Space for Workers Is Disappearing

Accelerated Workforce Reduction by Big Tech Companies
The Concept and Policies of Labor Must Evolve

The Moon Jae-in administration, pledging to realize a society that respects labor, aggressively pushed for minimum wage increases and working hour reductions from the outset. These efforts were called “income-led growth,” with the belief that boosting workers’ incomes would stimulate the economy. The Lee Jaemyung administration is also pursuing worker-centered policies, focusing on guaranteeing workers’ rights, reducing actual working hours, and enhancing safety, as demonstrated by the enactment of the Yellow Envelope Act and the Serious Accidents Punishment Act.

This is based on the view that not only are workers a major support base, but also that they were unable to protect their rights or secure their fair share during the industrialization process. On Labor Day morning, former President Moon Jae-in delivered a statement emphasizing, “Workers are now the mainstream of our society.” Responding to this, business leaders, concerned that policies they disagreed with were being enforced, argued in columns that such a stance would eventually lead to “a society where robots, not workers, become the mainstream.” At that time, South Korea already ranked first in the world in terms of the number of industrial robots per capita (now surpassed by China).

The core issue is the enforcement of policies that go beyond what society can tolerate and lack sufficient consensus. Under the Moon administration, the rapid implementation of these policies increased corporate burdens, resulting not only in a decline in employment but also in a rise in business closures among self-employed individuals and small business owners.

There is ongoing concern that the current government is also pushing through policies and laws that business owners and managers cannot agree with. No matter how well-intentioned these policies may be, a lack of broad social consensus inevitably leads to backlash. How many business leaders would willingly accept having to negotiate with workers they did not hire, being unable to hold unions accountable for damages caused by union activities, or facing criminal liability for workplace accidents?

Business leaders are likely to turn to artificial intelligence (AI), physical AI, and various digital solutions to replace the roles of human workers. Although the initial economic burden may be significant, such measures help avoid steep wage demands, labor disputes, and the risk of human accidents in workplaces. Hasty decisions by political leaders will only accelerate the reality of jobs being handed over to AI. Already, unmanned stores, factories, logistics centers, and transportation systems are spreading. In addition, more than 2 million jobs are being created overseas, while the number of foreign workers employed in South Korea has surpassed 1 million.

Just a few years ago, coding education was heavily emphasized, but AI is already replacing coding personnel, leading to a decline in hiring for such roles. Even in warfare, decisions that were once made by commanders after information analysis can now be delegated to AI, which, once given certain parameters, can simultaneously attack more than a thousand targets.

If politicians lacking imagination about the future continue to enforce labor policies based solely on past thinking and experience, they may inadvertently eliminate the very spaces workers depend on. We might see a future where, instead of workers paying earned income tax, basic income is distributed to workers through corporate taxes paid by businesses that employ robots.

It is also important to recognize that while large domestic corporations are announcing large-scale hiring plans in response to government requests, big tech companies are actually reducing their workforce. The very concept and environment of work are changing. Labor policies and definitions must adapt as well.

Kim Hongjin, CEO of Work Innovation Lab

This content was produced with the assistance of AI translation services.