CCR Magazine

FICO webinar
You are here  :Home arrow News arrow Korea needs new reforms to boost productivity, employment and growth, OECD says
Contact Us Newsletter Signup RSS Feeds

Latest News Headlines

Headlines

 
Commercial Credit News

Headlines

 
Korea needs new reforms to boost productivity, employment and growth, OECD says PDF Print E-mail
Monday, 16 May 2016
Korea needs to boost productivity, increase employment and stoke economic activity as part of efforts to reverse current trends toward slower growth and low inflation, according to a new report from the OECD. 

The latest Economic Survey of Korea, presented today in Sejong by Randall Jones, Head of the OECD’s Korea/Japan Desk, underlines that further reforms will be needed to boost the country’s growth rates, which have slowed versus historical rates, although remaining above the OECD average. The Survey projects GDP growth of 2.7% this year and 3% in 2017.

Recent reform proposals delivered to the G20 - as part of the government’s Three-year Plan for Economic Innovation - have great potential for boosting productivity and employment. Swift and full implementation of the reforms could add up to 3% to GDP within ten years, the Survey said.

Korea’s productivity growth has slowed markedly in recent years, curbing the rise of incomes and limiting advances in well-being. This calls for ambitious reforms to strengthen competition, raise efficiency in low-productivity services and overhaul the SME sector, where policies aim to ensure the survival of small firms, rather than higher productivity and growth.

The gains from Korea’s high level of investment in R&D are limited by structural weaknesses in the innovation system. Regulatory reform, relaxation of the barriers to trade and investment that and strengthening the R&D links between academia, business and government are all required, the Survey said.

The Survey discusses a range of policies for addressing the challenges of increasing employment and improving social cohesion. Removing the substantial obstacles to the employment of women, youth and older people will be key to sustaining the size of the labour force as the working-age population peaks in 2016.

Labour market dualism is the major cause of Korea’s wage and income inequality and high relative poverty. Breaking it down, and expanding the social welfare system, would improve social inclusion, the Survey said. In particular, the Basic Pension should be focused on the elderly with the lowest incomes to reduce poverty.
 

 Forums International Ltd

Forums International Ltd

 Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.

Find out more here.

latest issue

CCR Cover

The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.

Read the latest issue online

CSA

subscriptions

CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.

As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.

Subscribe to CCR Magazine

CCR World Magazine


 

Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.

Find out more

GTS Media Ltd
81 Cambridge Road
Southend-on-Sea
Essex
SS1 1EP

Registered in England No: 05483197