South Korea becomes first country 10% of workforce are robots

South Korea has made history by becoming the first country in the world where robots now constitute one-tenth of the workforce. This is a big step for the country to overcome its demographic challenges, which include a record-low fertility rate and an aging population.

In 2023, South Korea’s fertility rate hit a historic low of just 0.72, the lowest in the world. This demographic decline has been termed a “national emergency” by President Yoon Suk Yeol, who has expressed growing concern over the nation’s shrinking population. Despite the government’s efforts, including a significant $200 billion investment in fertility programs over the past 18 years, these initiatives have not yielded substantial results. In turn, the government created a new ministry dedicated to issues of an aging population, housing shortages, and reform of immigration policies.

In the face of increasingly stratospheric demographic pressures, South Korea has seen a burgeoning robotics industry as a potential means of relieving some of the economic burden imposed by a shrinking workforce. The country is now showing an impressive robot density of 1,102 robots per 10,000 employees, putting it in a very far lead among the other countries when it comes to automation. This puts South Korea way ahead of its closest competitor, Singapore, which ranks second with 770 robots per 10,000 workers. South Korea’s robot density is double that of other leading manufacturing nations, including Japan and China.

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As cited by its 2024 World Robotics report, South Korea still holds a vast lead globally in robotics activities, said the International Federation of Robotics. The study indicates robot density has experienced an annual growth of approximately 5 per cent since 2018. South Korea is exceptionally remarkable because its advanced base of manufacturing provides it a great advantage on the general usage of robots in respective industries. Though Singapore is a much smaller economy, it also ranks very high, thanks to its highly concentrated focus on automation, though South Korea’s industrial scale and robot density remain unmatched.

Not satisfied with the status quo, South Korea has more ambitious plans. In January 2024, the Ministry of Trade, Industry, and Energy unveiled the Fourth Intelligent Robot Basic Plan, an ambitious plan which will bring in more than $2.24 billion in public and private investments by 2030. The plan targets the further development of automation in the various industries: manufacturing, healthcare, agriculture, logistics, defense, and social welfare. The improvement of local production for core parts of robots is one of the key objectives of this plan. Currently, only 44 percent of the parts used in robots are produced locally, but the government aims to increase this to 80 percent by 2030. It also plans to remove 51 regulatory barriers that currently constrain the growth of the robotics sector.

South Korea’s approach to robotics is not limited to increasing the number of robots but also incorporating these machines in many industries, from a factory to healthcare. For instance, the government is currently developing robots that can work in labor-intensive fields, ensuring that the country will not cease producing high-tech commodities as the labor force begins to shrink.

Robotics has become an essential element of the country’s response to labor shortages, especially in industries reliant on repetitive tasks. With its aging population and diminishing working-age citizens, South Korea has increasingly turned to robots to fill the gaps in its workforce. These automation solutions are expected to play a critical role in maintaining the country’s global competitiveness, particularly in key sectors like electronics, automotive manufacturing, and healthcare.

Asia, as a region, still heads the list of the most advanced in robotics, with a robot density of 182 robots per 10,000 manufacturing employees. This marks a 7.6 percent increase over the years. China, Japan, and Singapore are some of the countries that are also highly ranked in the most automated economies in the world. And among them, South Korea is well on its way to preparing for its future, particularly because it aims to face the demographic problems head-on. 

source: newweek