President Lee Jae-myung announced the launch of the National Growth Fund at the Blue House to distribute profits from high-tech industries to citizens [1].
The initiative seeks to prevent the concentration of wealth in a few corporations by redirecting gains from artificial intelligence, semiconductors, and biotechnology back to the general public [1, 2]. As automation accelerates, the government aims to ensure that technological progress does not leave the workforce behind.
During the announcement, President Lee met with International Labour Organization (ILO) Director-General Gilbert Houngbo [1]. The partnership focuses on establishing safeguards for labor rights to mitigate the impact of AI-driven automation on employment [2]. This collaboration intends to create a framework where economic growth and worker protections evolve in tandem.
Lee emphasized the global nature of the challenge regarding workforce displacement. "The issue of job replacement by artificial intelligence will become a major topic worldwide, and I have great expectations for the role of the ILO," Lee said [1].
The National Growth Fund is designed to act as a financial mechanism that captures the surplus value generated by cutting-edge sectors [2]. By coordinating with the ILO, South Korea intends to set a precedent for how nations can manage the transition to an AI-centric economy without eroding the stability of the labor market [1, 2].
Officials said that the fund will prioritize the equitable distribution of wealth while the government continues to monitor the speed of AI integration across various industries [2]. The strategy involves a dual approach: leveraging the economic boom of the tech sector, and implementing policy protections for those whose roles are most vulnerable to automation [1].
“The initiative seeks to prevent the concentration of wealth in a few corporations.”
The National Growth Fund represents a shift toward a 'social dividend' model of capitalism, where the state actively redistributes the windfalls of automation. By involving the ILO, South Korea is signaling that it views AI-driven job displacement not just as a domestic economic hurdle, but as a systemic labor rights issue that requires international standardization to prevent widespread socioeconomic instability.
