"Job Threat? It's a Shift in Roles!... AI Creates More Jobs" [AI Autonomous Manufacturing Opens the Future]

Increased Production Volume Through Process Optimization
Additional Personnel Needed to Maintain Quality
AI Brings Good News for SMEs Facing Labor Shortages
Job Seekers Also Satisfied with Smart Factories

"Automation does not mean reducing the number of people; it means changing their roles. To maintain the increased production volume and its quality level achieved through process optimization, additional personnel are required." (Park Taejun, CEO of Kwangwoo)

"With the establishment of a smart factory, the production environment has become much more organized. In the past, some employees would quit after just a week, but now we've managed to shed the image of a 'dirty factory' that young workers tend to avoid." (Kim Suhan, Chief Operating Officer of Hanseojungong)

Executives of small and medium-sized enterprises (SMEs) preparing for the transition to autonomous manufacturing all agreed that now is the optimal time to adopt AI. They unanimously dismissed concerns that the advancement of AI could threaten human jobs and trigger a second Luddite movement. The Luddite movement refers to the riots by British workers who lost their jobs due to the advent of textile machinery in the 19th century, and in modern times, it is used as a metaphor for social movements opposing industrialization, automation, or new technologies. Dario Amodei, CEO of Anthropic, the developer of the generative AI service Claude, recently expressed a pessimistic outlook in an interview with tech media Axios, stating that "AI could eliminate half of all entry-level white-collar jobs within the next five years, potentially pushing the unemployment rate up to 10-20%," which resonated with some audiences.

AI Adoption Leads to Increased Hiring... Eases Labor Shortages

Kwangwoo, a synthetic ester lubricant manufacturer, has been applying automation technology to its production process since 2015. The company introduced AI systems throughout its factory to monitor and control process conditions such as temperature, pressure, and recovery rate in real time. Since the adoption of AI technology, Kwangwoo's production staff has increased by more than 30%. This is because more personnel were needed to maintain the quality of the increased output resulting from process optimization. CEO Park Taejun emphasized, "If technology is structured to assist people, companies can achieve even greater growth."

Hanseojungong, which manufactures specialized fire trucks, took the introduction of AI as an opportunity to increase its workforce in a different sense. COO Kim Suhan highlighted that, from the perspective of an SME struggling with labor shortages, the advent of AI is welcome news. The company established a smart factory in 2023 through the "Large-Medium-Small Enterprise Win-Win Smart Factory Support Project," jointly promoted by the Ministry of SMEs and Startups and Samsung Electronics. During this process, the total number of employees increased from 70 to 80. Kim noted, "Job applicants who visit our company and factory for interviews are often satisfied with the working environment after seeing the site," adding with a smile, "We subtly promote the smart factory to interviewees." He further emphasized, "Due to severe labor shortages, we previously had to recruit foreign workers, but after introducing the smart factory, we were able to newly hire seven Korean employees."

Kim Suhan, Chief Operating Officer of Hanseojungong, is being interviewed by Asia Economy. Cheonan - Photo by Yoon Dongju

According to those on the ground, the improved efficiency of production processes and workforce resulting from AI adoption can be reinvested to enhance the overall level of company operations. This includes not only verifying AI systems but also data management, information security, and new business research and development (R&D), which were previously difficult to focus on. As in the case of Hanseojungong, it also lowers the entry barrier for newcomers to society who are reluctant to work in high-intensity manufacturing fields.

Workforce Replacement Is Inevitable... Education and Matching Are the Solutions

Both industry and academia agree that the introduction of AI will significantly reduce the number of workers required for the same tasks. Instead, there is a need to encourage workers to learn how to utilize AI to enhance their competitiveness, and to redeploy them to new technology development, management, and security roles.

At the same time, some argue that actively fostering AI specialists now and growing AI solution companies will enable these firms to partner with domestic mid-sized and small companies that cannot conduct independent AI research. Jeon Yudeok, Head of the Industrial Innovation Division at the Korea Institute for Advancement of Technology, emphasized, "Large companies establish their own AI research labs and carry out separate technology development, but SMEs lack the financial resources for such investment. Therefore, the government should focus on developing talent to nurture small and medium-sized AI solution companies, and match related startups with small manufacturing firms."

Suhan Kim, Chief Operating Officer of Hanseojungong, is explaining the flow production process line established through collaboration with Samsung Electronics to advance manufacturing sites using data technology. Cheonan - Photo by Dongju Yoon

Director Jeon added, "If our startups gain experience in this way, there is a high possibility they will grow to a level where they can collaborate with both domestic and global conglomerates. In this case, Korea could become a cradle for AI talent and pioneer the global market."

Kim Kisoo, CEO of AI solution company Deep Eye, said, "Except for large corporations, few companies have data collection infrastructure, and SMEs are not digitized or structured in terms of data, so they cannot even dream of applying AI. In many cases, they do not even use Excel, so it is essential for technology-equipped startups to connect and match supply with demand." He continued, "If the government issues certifications or letters of recommendation, it would increase buyer trust and make actual technology exports much easier."

An industry official commented, "With the extension of the retirement age, AI-driven autonomous manufacturing is becoming a core issue in the employment and labor market. Now that a new government has taken office, it is the right time?the golden time?for industry, labor, and government to set goals together and coordinate detailed policies in earnest."