Robots are no longer just futuristic concepts in South Korea—they’re a reality reshaping factories and redefining jobs. With the country leading the world in robot density—measured by the number of robots per factory worker—many companies are turning to automation to address rising minimum wages and the limitations of the 52-hour workweek.
As automation increases, hiring practices are shifting. Companies are prioritizing employees in technical design, management, and planning roles over manual labor positions. Some are reallocating workers whose tasks have been replaced by robots to other areas, while others are finding that robotic efficiency reduces the need for overtime.
However, smaller companies struggling to afford automation face increasing difficulties. They say that falling behind in robotics widens the gap, making it harder to catch up.
NewSeogwang, a home appliance door manufacturer in Gwangju, began automating its processes in 2019 as minimum wage rose to 8,000 won. Currently, 70% of its operations are automated. A company representative said hiring has shifted to focus on technical and managerial roles.
Like NewSeogwang, Hwashin Precision, an auto parts processor in Chilgok, North Gyeongsang Province, has embraced automation. The company began using industrial robots in 2016 and now operates 27 units, automating 87% of its processes. Kim Cheol-woo, CEO of Hwashin Precision, said South Korea’s rising wages—now reportedly exceeding Japan’s average monthly pay—prompted the company to accelerate its robotic investments. “Where five workers once handled parts processing, we now use two robots and only two workers, reallocating the remaining staff to new production lines,” Kim said. Although the workforce has shrunk from 135 employees in 2016 to about 120 today, production has increased, enabling the company to expand its facilities by approximately 3,300 square meters.
The 52-hour workweek has also prompted automation. A plating company in Changwon, South Gyeongsang Province, introduced robots to maintain productivity without requiring overtime, with each robot handling the work of 10 employees.
The trend toward automation is growing. The Korea Institute for Robot Industry Advancement (KIRIA) reported that 2,524 South Korean companies used robotics in 2023, a 13% increase from 2019. Companies are investing in professional service robots (66%), embedded robotics (59.6%), and personal service robots (49.4%).
However, businesses without the capital for automation face challenges. A car parts manufacturer in Changwon noted that securing funds for robotics is difficult for small firms, and government support often favors companies with existing smart technologies.
A 2024 survey by the Korea Industrial Complex Corporation found that 40.7% of small manufacturers in Changwon cited funding difficulties as a barrier to automation. Another 25.9% said government support was insufficient, while 20.4% pointed to long investment recovery periods. According to the Korea Federation of SMEs and Statistics Korea, the adoption rate of new technologies like robotics and AI was 24.5% for large corporations but only 12.1% for small and medium-sized enterprises, highlighting a widening gap in technological advancement.
