[K-Women Talk] Let's Build a Nation for Youth in the Age of AI

Severe Shortage of Practical Talent for the AI Economy
Active Support Needed for Young People “Just Resting”
Fostering the Next Generation of Digital Innovation Leaders

With the launch of the new administration, a supplementary budget of 31.8 trillion won was swiftly passed, and from the 21st, a total of 12.1709 trillion won in livelihood recovery support funds will be distributed. The government’s policy is to provide these funds in the form of consumption coupons to stimulate spending and serve as a priming effect for reviving the real economy. It is expected that this measure will provide at least some help to small business owners and self-employed people, who are now facing even greater difficulties than during the COVID-19 pandemic.

However, the livelihood recovery support fund is only an emergency measure, and what matters from now on is restoring our country’s declining potential growth rate and enabling our economy to make a new leap forward. The first pledge made by the new government is a 100 trillion won investment in artificial intelligence (AI). I believe that, in this new era of digital innovation represented by AI, a national-level strategy must be properly designed so that Korea does not fall behind but instead leads the way.

In this context, one of the most critical issues is the workforce that will drive the AI economy. While having leading figures is important, we also need people who can collect and process data, as well as design and build models themselves. Currently, Korea’s working-age population is decreasing. Nevertheless, according to the economically active population survey, the number of young people who responded “just resting” reached 500,000, and the youth employment rate dropped to 45.3%, which is even lower than the 46.2% recorded in 2024. This should be taken very seriously. The “just resting” category does not refer to unemployed people actively seeking jobs. It is said that the number of young people in the “just resting” group has surpassed 500,000 for the first time since statistics began in 2003.

Despite the shrinking working-age population, this phenomenon is occurring because the number of jobs that young people want is steadily decreasing. Leading domestic job-creating companies such as Samsung and Hyundai Motor have, under pressure from the United States, pledged record investments and established factories in the U.S.?a trend that began several years ago. As a result, job postings at domestic large corporations and mid-sized companies, which are most sought after by young people, have dropped sharply. In this situation, companies have long preferred hiring experienced workers over new recruits. This is why, even as the youth population declines, the employment barrier for college graduates feels even higher.

The reason why remaining in the “just resting” state is so serious is that the longer these young people remain out of work, the more their job skills deteriorate, and the less likely they are to obtain the jobs they want even if the economy recovers later.

The most effective alternative for these young people is to create suitable jobs, even if only temporarily. During the COVID-19 period, the government created a large number of digital jobs. For the digital jobs program at that time, the government subsidized up to 90% of actual wages for young people working in IT-related positions for six months. As a result, startups and small to mid-sized companies?who wanted to hire more staff but were burdened by labor costs?hired many young people. With an investment of about 1 trillion won, this job creation program not only provided employment for young people but also gave them valuable work experience, serving as a stepping stone to large corporations that prefer experienced candidates.

In the new era of digital innovation led by AI technology, the role of the younger generation is more important than ever. To achieve this, the government must take active steps to help young people without work experience in this field build their careers. Young people who answered that they are “just resting” are at high risk of being left behind amid these sweeping changes. They must be the first to receive proactive support.

Recently, the European Union has strengthened its “Youth Guarantee” program, which provides employment, education, and training opportunities to people under 25, by expanding it to those up to 29 years old. We, too, must urgently strengthen our policies to ensure that the number of young people who are “just resting” does not increase and that young people become the main drivers of the new era of digital innovation.

Kim Kyungsun, former Vice Minister of Gender Equality and Family