The advancement of artificial intelligence (AI) has significantly increased individual work efficiency while reducing new and experienced hiring, raising concerns among the government and businesses about expanding youth employment.
Lee Geum-ryong, chairman of Koglo.com, who previously conceptualized a large discount store business while at Samsung C&T and later served as CEO of Auction, emphasizes that universities must change to address youth employment in the AI era. He argues that universities need to transform from their outdated image as centers of academia into hubs for entrepreneurship to fulfill the mission of expanding youth jobs.
In an interview with Aju Economy on August 30, ahead of the upcoming 18th Good Growth, Good Jobs Global Forum (2026 GGGF) on September 2, Lee shared his insights on expanding youth employment in the AI era.
Lee stated, "To achieve the goal of expanding youth employment, we need to create a new digital valley centered around universities, and the government must dramatically ease regulations to allow for the emergence of more new companies."
He cited KAIST as a successful example of addressing two significant contemporary challenges in South Korea. During the tenure of former President Lee Kwang-hyung, KAIST actively encouraged entrepreneurship among all members, including undergraduates, graduate students, and faculty. As a result, over 560 companies were founded at KAIST, with 24 of them achieving public listing.
Lee emphasized, "Not only the government but also universities and businesses must create a policy environment conducive to entrepreneurship and employment for young people."
He criticized Seoul-based universities for lacking policies to promote entrepreneurship among students and faculty, stating, "Such institutions are merely universities for professors and exist in a completely stagnant environment." Despite graduating from one of Seoul's prestigious universities, Lee did not hold back in his criticism regarding the activation of youth employment.
Lee proposed that South Korea should benchmark the examples of Silicon Valley in the United States and Shenzhen in China to create a cradle for startups centered around university campuses.
He suggested, "We should build large buildings of 30 stories or more on or adjacent to major university campuses, where research, entrepreneurship, and accommodation can be integrated. Through this policy and spatial combination, universities can become forward bases for youth and startup entrepreneurship." He believes that easing building regulations by the government and local authorities is essential to facilitate the construction of such large buildings.
Lee also expressed the need for the government to eliminate various regulations in finance, healthcare, and the environment, and to dismantle existing industrial cartels to allow young people to enter these sectors. He analyzed that groups holding established power, such as large corporations and public enterprises, aim to enhance productivity using AI while maintaining existing jobs, which fails to create new employment opportunities.
Additionally, Lee stated, "We need to identify roles within major public enterprises that can be transferred to startups. This will allow new companies to establish themselves in the market and discover innovative businesses and services."
Lee plans to present specific recommendations for expanding youth employment in the AI era to the government and businesses during a special lecture at the 2026 GGGF.
* This article has been translated by AI.
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