President Lee: "Youth Employment Still Challenging... South Korea Must Shift to a Startup-Centered Nation"

"Good Jobs Are Dwindling and Change Is Accelerating Due to AI"

"Innovative Policies Beyond Existing Frameworks Needed"

President Calls for Stronger Protection for Non-Standard Workers

"Social Safety Net Must Be Airtight"

President Lee Jae-myung on August 4 instructed his administration to devise innovative job creation measures that go beyond existing policy frameworks, emphasizing that the employment situation for young people remains challenging. Highlighting that companies’ demand for labor is shrinking and job quality is declining due to the proliferation of artificial intelligence (AI), Lee stressed the need to transform South Korea into a “startup-centered nation” so that young people can directly create their own jobs.

President Lee Jae-myung is speaking at the ministry work report for the Ministry of Labor, Ministry of SMEs and Startups, and the Fair Trade Commission held at the Blue House's Yeongbingwan on August 4, 2026. Photo by Yonhap News

In his opening remarks at the ministry work report from the Ministry of Employment and Labor, Ministry of SMEs and Startups, and the Fair Trade Commission on this day, President Lee stated, "The employment situation for young people is still not favorable," and continued, "Please develop innovative measures that break out of the existing mold, so that we can expand the number of high-quality jobs desired by young people."

President Lee assessed that as industries and employment structures rapidly shift around AI, it is becoming increasingly difficult to resolve youth unemployment solely through jobs at existing companies. He said, "As the industrial landscape changes, the proportion of jobs involving employment at good companies is steadily decreasing and the quality of jobs is declining. In particular, these trends will accelerate as AI becomes commonplace." He added, "Meanwhile, demand for good jobs continues to grow. Ultimately, I think a breakthrough must be found through entrepreneurship," underscoring, "South Korea must transform into a startup-centered country."

He also directed that the government’s "Startup for Everyone Project" proceed as planned. The goal is to foster an environment where young people with ideas can start businesses and try again even after setbacks, free from fear of failure. President Lee stated, "Please continue unwavering support for the Startup for Everyone Project, so that anyone with an idea can bravely start a business without fear of failure."

President Lee also called for stronger protections for irregular workers such as platform workers and freelancers. He said, "As the number of irregular workers increases in the age of AI, we must drastically reinforce the social safety net so that they are thoroughly protected." With the rapid pace of labor market changes expanding the blind spots in existing social security systems such as employment and industrial accident insurance, Lee urged for swift institutional reforms that will protect all working people regardless of job type.

President Lee also said that the growth of small and medium-sized enterprises (SMEs) is a key condition for expanding youth employment and alleviating economic polarization. "The growth of SMEs— the backbone and true pillar of South Korea’s economy — is essential for the growth of all," Lee stated. "We should not stop at just protecting SMEs, but support them so that they can achieve sustainable growth through manufacturing innovation."

He further emphasized the need to build a business ecosystem where the benefits of growth extend to SMEs, small business owners, and local merchants, and asked for efforts to vitalize local economies and strengthen managerial and financial safety nets.

Meanwhile, President Lee highly praised the Ministry of Employment and Labor for its results in reducing the number of fatalities from industrial accidents and delays in wage payments. He said, "Do not be complacent but make every effort to ensure workplaces are safe and provide fair compensation." He also commended the Fair Trade Commission for its role in stabilizing prices by cracking down on cartels involving everyday necessities such as pork. Additionally, Lee encouraged the Ministry of SMEs and Startups for achieving a record high in SME exports during the first half of the year, and called for policy efforts to ensure this growth reaches SMEs, small business owners, and local retailers.

This content was produced with the assistance of AI translation services.