{
  "id": 17769074,
  "title": "Paradoxes of Korea’s AI boom: Labor’s share of GDP hits record low",
  "url": "https://urgent.news/2026/11/02/paradoxes-of-koreas-ai-boom-labors-share-of-gdp-hits-record-low",
  "topic": "ai",
  "section": "AI",
  "published": "2026-11-02T06:34:51.000Z",
  "source": {
    "name": "The Hankyoreh",
    "slug": "the-hankyoreh",
    "url": "https://www.hani.co.kr/arti/english_edition/e_business/1285385.html"
  },
  "original_language": "en",
  "account": "Korea's artificial intelligence-driven semiconductor boom has resulted in soaring corporate profits, but the gains have largely bypassed labor, with labor's share of GDP hitting a record low, according to government figures. As the Korean economy is projected to grow by at least 3.6% annually, experts are calling for increased government investment in job creation to curb the growing disparity. The Bank of Korea's data shows that labor's share of economic output, represented by compensation of employees, has plummeted to 41.1% of nominal GDP in the second quarter of this year, down from 47.9% a year earlier—its lowest level since 2010. Meanwhile, gross operating surplus, which captures income generated by businesses and self-employed individuals, has surged to 51.9% of GDP, the highest level since 2010. In the span of just six months, the gap between labor's share and operating surplus widened dramatically, shrinking by 5.7 percentage points from 46.8% to 41.1%. Experts attribute this decline to the sharp increase in memory chip export prices, with most profits flowing into operating surplus rather than wages. Although real wages have risen 7.9% year-over-year through June, the surge in operating surplus explains the decline in labor's share. The semiconductor boom, particularly in memory chips, is not labor-intensive, and the main reason for the gap is the concentration of profits in operating surplus. The problem is likely to persist, as corporate profits increase upon price hikes, while wages typically catch up only after annual wage negotiations and performance bonuses. However, if semiconductor prices continue to rise, the gap between labor's share and operating surplus could widen further. A more lasting solution, experts argue, is to invest in workforce development and translate economic growth into employment and labor income.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": "https://urgent.news/ill/17769074.png",
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "CNBC",
        "title": "South Korea targets 'world's highest performance' sovereign AI model in record new budget",
        "url": "https://urgent.news/2026/11/02/south-korea-targets-worlds-highest-performance-sovereign-ai-model-in",
        "published": "2026-11-02T06:02:03.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}