※ URL(Korean): https://www.kisdi.re.kr/bbs/view.do?bbsSn=114752&key=m2101113055776&pageIndex=2&sc=&sw=

KISDI Publishes “AI Agent Economy Strategy for Genuine Growth for All” 
- “From tools to agents”: The dawn of the AI agent economy
- “Labor-friendly AI transition” vital to reconnect growth with equitable distribution
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AI emerges as an economic actor — both an opportunity to overcome low growth and a structural challenge

Transitioning to an AI agent economy signals a fundamental shift in the human-centered economic system

Report warns of risks that growth dividends may be disconnected from the labor market, calling for a “labor-friendly AI transition”

Generative AI accelerates disruption of employment structures through automation of mid-skill and entry-level tasks

KISDI: “We must build a virtuous cycle of innovation, inclusion, and distribution through data infrastructure innovation and renewed social dialogue.”

The Korea Information Society Development Institute (KISDI) published KISDI Premium Report (25-05): “AI Agent Economy Strategy for Genuine Growth for All”, outlining national strategic directions for harnessing AI’s growth potential, addressing labor market transformation, and achieving growth that benefits everyone.

The era of the AI agent economy, where AI functions as an autonomous “economic actor”—not merely a tool or technology—is fast approaching. Korea now faces a crisis of “low growth and structural imbalance,” driven by the limitations of the “imbalanced, short-term technological innovation model” that once helped it escape the “middle-income trap.” Amid this environment, the transition toward an AI agent economy—powered by technological advances, social acceptance, and strong government support—could provide fresh momentum to overcome Korea’s current challenges. However, it also fundamentally challenges the assumptions of the existing economic system and the validity of policies designed for a human-centered economy.

The report notes that while the government is positioning AI as a key driver for breaking through low growth and structural imbalance, there is a significant risk that AI-driven growth dividends could become distorted or disconnected from the labor market.

Research Fellow Aram Moon emphasized that “for technology-led growth to translate into shared and equitable growth for all, policy design must ensure a labor-friendly AI transition.”
She further explained that “as Korea confronts the dual crisis of low growth and structural imbalance, the transition to an AI agent economy could become a new engine for growth. Yet since the existing economic system has been designed around human-centered assumptions, the incorporation of AI as an economic actor requires a fundamental redesign of policies and institutions.”

The report calls for a policy redesign that goes beyond technology-driven growth to establish an AI-based virtuous cycle — a structure where “technological leadership leads to inclusive growth and fair distribution.”

It first points out that AI’s macroeconomic growth potential could be distorted and offset within the labor market.  Comparing the divergent forecasts of leading global researchers, the report explains that if technological progress tilts toward substituting rather than complementing labor, it could lower the labor income share, weaken aggregate demand, and ultimately erode the overall momentum of economic growth. Korea, where software–labor substitutability is particularly high, may be especially vulnerable to such risks during the AI transition.

The report also warns that labor-saving AI adoption could intensify the fragility of Korea’s employment structure. Like other advanced economies, Korea has a high proportion of occupations highly exposed to AI, making its labor market highly sensitive to technological introduction. Generative AI is already automating not only mid-skill positions but also entry-level tasks traditionally performed by new employees—undermining the foundation of the traditional “career ladder.”  This structural friction, the report cautions, could “block new entrants from joining the labor market and exhaust the human capital of existing workers in place,” effectively closing off pathways for wage growth.

To achieve a successful transition toward an AI agent economy that supports “genuine growth” for all, Research Fellow Moon proposed a paradigm shift in policy strategy as follows.

First, to achieve a successful transition toward an AI agent economy that supports “genuine growth” for all, Research Fellow Aram Moon proposed the following paradigm shift in policy strategy. Second, it is urgent to restore the labor market’s role as a bridge between productivity and growth. To that end, Korea must innovate its data infrastructure—developing an AI-specific classification system and databases to accurately capture the economic and social value created by AI—and establish new growth and welfare indicators that go beyond GDP. Finally, the report underscores the need to revive multi-layered social dialogue on how to share the value and benefits generated by AI, preparing a new social contract for a “just transition.”

KISDI plans to continue in-depth policy research on the socioeconomic impacts of the ongoing transition to the AI agent economy and to develop practical and effective strategies that support “genuine growth for all.”