Korea's AI Talent Wage Premium Less Than Quarter of US Level

South Korea's artificial intelligence workforce has doubled over the past decade, but wage premiums for AI specialists remain far below global standards, according to a Bank of Korea report released Monday.

The central bank's issue note titled "AI Workforce Status and Supply-Demand Imbalance" found that Korea had approximately 57,000 AI professionals as of 2024, more than double the 28,000 recorded in 2010. Based on LinkedIn profile data, Korea's AI workforce growth rate exceeded that of the United States, United Kingdom, France, and Canada. However, the absolute numbers lag far behind, with the US having 780,000 AI professionals and the UK 110,000.

Korea's AI workforce is highly educated, with 58% holding master's or doctoral degrees. Graduates from a handful of elite universities including Seoul National University, Yonsei University, Korea University, and KAIST dominate the field. Engineering majors account for 64% of AI professionals, followed by business administration at 12%.

Technical skills have steadily advanced. As of 2024, the most common skills among AI professionals were cloud computing (41%), machine learning (40%), deep learning (17%), and signal processing (11%). The proportion of workers with machine learning and deep learning skills increased by 14 percentage points and 8 percentage points respectively compared to 2010, tracking global trends.

AI professionals in Korea earn on average 4.3% more than non-AI workers, with the wage premium rising from 1.3% in 2010 to 6% in 2024. Wage premium refers to the additional compensation AI-skilled workers receive compared to peers with similar job functions, education, and industry background.

Certain specializations command higher premiums: pattern recognition (17.9%), brain science (15.8%), signal processing (11.8%), and cloud computing (11.3%).

However, international comparisons reveal a significant gap. The US offers a 25% wage premium for AI talent, Canada 18%, and the UK, France, and Australia approximately 15%. Korea's 6% premium is less than half that of major economies.

The Bank of Korea attributed this to seniority-based pay systems, structural rigidity that slows performance-based compensation, and limited labor market mobility.

The low compensation is driving talent abroad. Job turnover rates among AI professionals exceed the average for highly educated specialists on LinkedIn, with a significant portion moving to overseas companies. Workers based abroad have steadily increased over 15 years to reach 16% of the total, or approximately 11,000 people. The United States is the most common destination.

Workers with advanced skills in deep learning, machine learning, and robotics show particularly high rates of overseas employment. "Fields with lower domestic wage premiums are losing talent to overseas markets faster," the central bank explained.

Except during the pandemic, Korea has experienced a net outflow of AI talent for 15 consecutive years. The outflow only approached zero during periods of restricted movement before resuming afterward.

Corporate surveys also revealed supply-demand imbalances. A survey of HR managers at 400 companies found that more than 70% of large corporations, mid-sized firms, and small businesses all said they intend to hire more AI talent.

When asked about salary offers, large companies reported already paying an average of 13% above current market rates and expressed willingness to increase compensation by up to 22%, indicating fierce competition for talent.

"Quantitative expansion is evident, but Korea is structurally disadvantaged in international talent competition," the Bank of Korea said. "To prevent the outflow of core AI talent and secure industrial competitiveness, establishing globally competitive compensation systems and research and industrial ecosystems is essential."