Welfare Solutions for Jobless Growth in the AI Era: Seoul Stepping Stone Income

SEOUL, South Korea–(BUSINESS WIRE)–#AI–The Seoul Metropolitan Government announced the overall outcomes of the three-year Seoul Stepping Stone Income Project (SSIP) at the Seoul International Forum on Stepping Stone Income 2025 (SIFSI 2025) on Tuesday, December 23. Alongside world-renowned economics and welfare scholars, the city government presented policy effectiveness evaluation and discussed the future direction of income security systems.

Held at the Dongdaemun Design Plaza (DDP) in central Seoul, the forum featured a keynote speech by 2024 Nobel Laureate in Economic Sciences, Professor James A. Robinson of the University of Chicago, followed by a special dialogue with Seoul Mayor Oh Se-hoon. The program continued with a presentation on the SSIP’s third-year progress report, the results of in-depth research on its alignment with existing welfare programs, and a discussion on future income security systems focused on care-vulnerable groups.

In the keynote session titled “Inclusive Institutions: The Social Foundations for Sustainable Prosperity,” Professor Robinson emphasized the role of government in economic growth, distribution, and welfare. He pointed out that the Korean society requires a “new social contract” with improved asset distribution and the restoration of social mobility, moving beyond the mere expansion of welfare. He also asserted that Seoul Stepping Stone Income could serve as a vital policy link in the process of establishing the new social contract.

In the subsequent special dialogue, discussions focused on the government’s role in responding to “jobless growth” driven by the advancement of AI. Professor Robinson noted that the world is currently underprepared for the social risks associated with the AI transition and stressed the need for full-scale discussion on the matter.

During Session 1, Professor Jungmin Lee of Seoul National University presented the “Seoul Stepping Stone Income Project: Third-Year Progress Report.” According to research, the average monthly income of participating households was KRW 250,000 higher than that of non-participating households. Furthermore, spending on essentials—such as transportation and groceries—increased, and both mental health and nutritional indices showed improvement. Conversely, while the labor supply of household heads decreased by an average of 11.4 percentage points, analysis indicated that the spare time was redirected into productivity-enhancing activities, including education, training, caregiving, and health and wellness. No significant reduction was observed in the labor supply of other household members.

In Session 2, researchers presented in-depth studies aimed at improving the implementation and alignment of the Stepping Stone Income with existing welfare programs. Topics included financing strategies, labor market impacts, integration with social services, and the potential for spatial expansion. The studies outlined mid-to-long-term fiscal requirement estimates, the necessity of parallel work incentives, the integration of social services to alleviate caregiving burdens, and unified or customized models for potential nationwide application.

Session 3 explored the proposition that care-vulnerable groups should be established as the core target of future income security systems. The researchers pointed out that existing systems do not sufficiently cover individuals with caregiving responsibilities within the working-age population. They suggested that in the new AI era, policy design must comprehensively offer support for both income and caregiving. Relevant international research shared during the session corroborated that income security has a positive impact on mental and physical health, housing and financial stability, and child education.

Seoul Mayor Oh Se-hoon stated, “Behind the bright prospects of the AI era lies the risk of jobless growth.” He added, “The Seoul Stepping Stone Income Project, which we have proactively pioneered over the last three years, serves as a crucial policy starting point to respond to these changes.”

Contacts

Seoul Metropolitan Government

Kyungmin Kim

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