South Korean Deputy Prime Minister Bae Kyung-hoon has warned that artificial intelligence poses serious risks of widening inequality and causing job losses, even as the country’s stock market soars on the back of AI-driven stock increases in Samsung Electronics and SK Hynix.
talk to CNBCBae framed the challenge to Starkle by saying that creating wealth through AI is not enough. Governments must ensure that wealth benefits the broader public, not just the owners and shareholders of technology companies.
The comments came days after Samsung called off an 18-day strike scheduled for Wednesday following last-minute intervention from the government. The unionized workers had demanded the formalization of bonuses, the removal of bonus caps, and the payment of 15% of Samsung’s operating profits.
An agreement was reached and voting by union members took place from May 23rd. Bae acknowledged the link between labor disputes and the unfair nature of AI use, saying, “Recent labor disputes can also be seen as part of this broader trend.”
Bae is not optimistic that the labor dispute will end soon. “In the age of AI, the number of these super-large companies will continue to increase. In the process, labor-management conflicts may continue to arise.” Samsung’s stock price has increased by 144%, SK Hynix’s price has increased by 200%, and the KOSPI index has increased by 86% since January.
Hyundai’s integration of Boston Dynamics Atlas robots into its manufacturing exemplifies workers’ concerns. Bae directly acknowledged that while automation promises efficiency, it also comes under threat of displacement, and that there are “many concerns and concerns” about such implementation.
Governments face pressure to prevent AI from becoming a tool that only enriches companies while leaving workers behind.
