South Korea warns AI wealth gap could fuel labor unrest

South Korea's Deputy Prime Minister Bae Kyung-hoon warned that artificial intelligence poses serious risks of widening inequality and triggering job losses, even as the nation's stock market surges on AI-driven gains at Samsung Electronics and SK Hynix.

Speaking to CNBC, Bae framed the challenge starkl saying that creating wealth through AI isn't enough; the government must ensure that wealth benefits the broader public, not just technology executives and shareholders.

The comments arrive days after Samsung suspended a planned 18-day strike Wednesday following last-minute government intervention. Unionised workers had demanded formalisation of bonuses, removal of bonus caps, and a 15% payout of Samsung's operating profits.

An agreement had been reached, with the vote by union members lasting from May 23. Bae did recognise the connection between labour disputes and the inequitable nature of AI usage, saying, "Recent labour-management conflicts can also be seen as part of this broader trend."

Bae is not optimistic about the end of labour disputes anytime soon. "In the age of AI, more of these super-large companies will continue to emerge. In that process, labour-management conflicts may continue to arise." Samsung stock prices have gone up 144%, while SK Hynix prices have increased by 200%, making for an 86% increase in the KOSPI index since January.

Hyundai's integration of Boston Dynamics Atlas robots into manufacturing exemplifies worker concerns. Automation promises efficiency but threatens displacement, a tension Bae acknowledged directly: "There are many concerns and worries" about such deployments.

The government faces pressure to prevent AI from becoming a tool exclusively enriching corporations while leaving workers behind.