AI Tsunami Hits Professional Jobs: Korean Firms Restructure as Accountants & Lawyers Feel the Heat
Seoul, South Korea – A wave of automation powered by artificial intelligence is sweeping through South Korea’s professional sectors, triggering significant restructuring at major firms and raising concerns about the future of work for young accountants and lawyers. This isn’t a distant threat; it’s happening now, with companies proactively adapting to a landscape where AI can perform tasks previously requiring years of training and experience.
AI Cuts Accounting Time by 75%: A Game Changer for Firms
According to a senior official at one of Korea’s “Big Four” accounting firms, AI can complete tasks that would take three junior accountants (with five or less years of experience) eight hours to finish in a mere one hour. This dramatic efficiency gain isn’t just about speed; it’s fundamentally altering cost structures. “The time saved through AI can be used for other projects, and the burden of labor costs is much reduced than before,” the official stated. This isn’t isolated to accounting. Legal firms are experiencing similar transformations.
Law Firms Embrace AI, Reducing New Hire Demand
The legal market is witnessing a parallel shift. Time, for lawyers, is directly tied to revenue. AI is being leveraged to drastically reduce the time spent training junior lawyers and to increase overall workload capacity. The impact is already visible in hiring trends: the top 10 law firms in the country have slashed new lawyer hires by roughly 30% over the past three years – from 296 in 2022 to just 227 this year. Dongin Law Firm hasn’t hired a new lawyer in two consecutive years. Decode Law Firm CEO Cho Jung-hee bluntly stated, “As a result of the spread of AI, the demand for new hires is decreasing in the lawyer industry.” Even in the labor attorney sector, which has seen increased demand due to recent legislation, firms are finding AI can handle the workload of three to four junior employees with just one new hire.
The Rise of ‘Digital Selection’ and AI-Focused Skillsets
Firms aren’t simply adopting AI; they’re actively seeking professionals who can build and manage it. Samil PwC, Korea’s largest accounting firm, has introduced a “digital selection” process in its recruitment, specifically targeting candidates with development capabilities. For the first time, applicants are required to pass a coding test. Competitors like Deloitte Anjin and Samjong KPMG are following suit, rushing to integrate AI into their audit work. This signals a fundamental shift in the skills valued by these firms – it’s no longer enough to be a skilled accountant or lawyer; you need to understand how to leverage AI to enhance your work.
Restructuring & Voluntary Retirement: The Human Cost of AI Adoption
The efficiency gains driven by AI are leading to restructuring across various sectors. Large corporations, including Microsoft Korea, SK Telecom, Lotte Members, and LG Electronics, are offering voluntary retirement packages. While companies frame this as a natural evolution, the Korean MS union alleges that AI is directly responsible for job losses, with development and human resources positions particularly vulnerable. A banner displayed outside Microsoft Korea’s headquarters – “The result of hard work is the abolition of jobs” – encapsulates the growing anxiety among workers.
The Paradox: Demand for Experienced Professionals Remains High
Despite the displacement of entry-level positions, experts predict a growing demand for highly experienced professionals. Noh Sang-beom, CEO of OKKY, Korea’s largest developer community, warns that the current hiring freeze could lead to a shortage of experienced developers in just three years. “If we don’t recruit new employees, the number of experienced developers may dry up in three years. However, since humans must check the work performed by AI, the demand for experienced developers who are good at work may increase further.” This echoes observations from overseas companies that have already undergone similar restructuring – they’re now struggling with maintenance and are quietly re-hiring laid-off employees to oversee AI-generated work.
Youth Employment Plummets in AI-Exposed Industries
Data from the Bank of Korea paints a stark picture. Over the past three years, youth employment has decreased by 211,000, with a staggering 98.6% of those losses occurring in industries with high AI exposure. Conversely, employment for those in their 50s has increased by 209,000, with nearly 70% of those gains also in AI-exposed industries. The Bank of Korea explains that younger workers typically perform “codified” tasks easily automated by AI, while older workers possess the tacit knowledge, social skills, and experience that are harder to replicate.
The message is clear: the future of work demands adaptability and a willingness to embrace AI as a tool, not a threat. As Yonsei University Professor Lee Mi-ra advises, “We need to change the work structure by using AI for data analysis and humans deriving optimized results based on this. We need to retrain employees in a way that innovates by adding AI to existing tasks.” The AI revolution isn’t just changing what we do; it’s changing how we do it, and those who adapt will thrive.
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