South Korea

Yonhap | English | News | Dec. 3, 2025 | Accidents

Family members of victims from the December 2024 Jeju Air plane crash protested on December 1, 2025, by shaving their heads to express their distrust in the government's interim investigation results. The crash, which occurred at Muan International Airport, resulted in 179 deaths. The protest took place outside the presidential office in central Seoul as the transport ministry's investigation committee prepared to hold a two-day hearing to announce interim findings.

The families and affiliated civic groups accused the committee of a lack of transparency, criticizing it for conducting a "self-investigation" that blocked information. They demanded an independent investigation led by a body under the prime minister instead of one under the transport ministry, which oversees aviation policy, arguing this presents a conflict of interest. During the protest, several participants clashed with police and attempted to enter the presidential office to meet President Lee Jae Myung. The group plans further overnight rallies until the day of the hearing.

"콜센터, AI 때문에 사라질 직업 아냐…노란봉투법 때문에 존립 위기"

Hankyung | Local Language | News | Dec. 3, 2025 | Regulation

Sohn Young-deuk, chairman of KS Korea Employment Information, explains that AI is supplementing the call center industry by addressing chronic labor shortages rather than replacing jobs. He predicts that within five years, call center counselors will evolve into customer experience (CX) consultants who manage AI systems, leading to salaries more than doubling due to increased expertise and productivity. His company, which developed the AI contact center platform C-Hive, supports a hybrid model where AI handles simple inquiries and human counselors manage complex issues. Despite challenges like strikes and data leaks, KS Korea Employment Information’s sales and profits have grown significantly.

Sohn highlights demand for AI-enabled call centers in sectors such as finance, e-commerce, healthcare, insurance, and public services, where complex and privacy-sensitive inquiries require human expertise supported by AI. He also outlines plans to enter the medical tourism market by creating transparent customer management platforms connecting Chinese patients to Korean hospitals, aiming to reduce broker fees and improve service quality.

However, the survival of call centers is now more threatened by the upcoming Yellow Envelope Act, which requires subcontractor unions to negotiate directly with prime contractors. Sohn warns this could cause principal companies to cut contracts or accelerate AI automation to avoid risk. He recalls a past incident at KS Korea Employment Information’s Chuncheon center, where aggressive union demands, including a 20% wage increase and emotional labor allowances, led to strikes, client loss, and a drastic reduction in employees from 1,000 to 100. While employment has partially recovered, Sohn cautions that similar labor conflicts under the new law could disrupt the industry. He emphasizes the need for labor-management coexistence to navigate the changes brought by AI.

Joongang Ilbo | English | News | Dec. 3, 2025 | UndeterminedOperating Results

Korean companies are shifting their 2026 business strategies from expansion to maintenance and cost-cutting amid a global economic slowdown and increasing regulatory pressures. According to a Korea Enterprises Federation (KEF) survey of 229 companies, over 70 percent plan either to maintain current operations or tighten them, with only 29.1 percent aiming to expand. Workforce optimization, including headcount reductions, has become the primary cost-cutting measure for the first time since 2017.

Several sectors, including petrochemicals, steel, home appliances, telecommunications, and retail, have initiated restructuring efforts this year, offering voluntary retirement to improve profitability. Hiring plans reflect the cautious mood, with over half of surveyed companies maintaining current hiring levels, while 41 percent of large firms plan to reduce recruitment. Data from sustainability reports also show a significant decline in new hires among major Korean firms over the past two years.

Investment plans reveal a preference for maintaining or reducing domestic investments, especially among larger firms, while overseas investment, particularly in Southeast Asia and the United States, is expected to increase. President Lee Jae Myung has expressed concern about the imbalance favoring foreign over domestic investment and urged a more balanced approach. Rising domestic costs, new labor regulations, and proposed amendments to the Commercial Act are cited as factors pushing companies toward defensive strategies. Experts emphasize the need for minimizing regulatory burdens and implementing labor market reforms to encourage investment and hiring within Korea.