‘Labor market reform key to Korea’s economic growth’
Korea Forum 2019 delves into labor, regulation issue
Reforming the rigid labor market, resetting the role of large conglomerates and helping innovative new businesses are the three key tasks the nation needs to deal with for economic growth, according to experts.
Labor experts who took part in the Korea Forum 2019, Thursday, discussed major problems holding back the country’s economic growth.
The annual forum, co-hosted by The Korea Times and its sister paper the Hankook Ilbo, was held at the Shilla Seoul under the theme “Three hurdles in the third year of the Moon Jae-in presidency.” Prestigious politicians, experts and scholars, including 2011 Nobel Prize in Economics winner Thomas Sargent, participated in the event.
In the first session focused on labor market issues, former Labor Minister Kim Dae-hwan pointed out the country’s dual structure as problematic.
“The biggest problem our labor market faces is the dual structure, especially the widening gap between large and small companies, as well as the gap between regular and irregular workers,” Kim said. “If the dual structure is not addressed, social and economic inequality and inefficiency will get worse.” He also blamed the government for not being able to create jobs. “Government policies are not creating jobs. This is because most of the labor policies are for those who are already employed,” he said.
Kim advised the government to secure labor flexibility and increase productivity through various types of employment, shortened working hours and the improvement of job training.
Senior secretary for economic affairs Yoon Jong-won said the government has enhanced the job market, but there was still much room for improvement.
“Business indicators are good, but social and living standard indicators are at rock bottom,” Yoon said. “We need to simultaneously improve both the economy and social norms.”
In a welcoming speech, Korea Times and Hankook Ilbo Chairman Seung Myung-ho called for bipartisan efforts to tackle the regulatory and sociopolitical hurdles the country faces.
“We can no longer put off labor reform and the restructuring of industries. And this will require bold concessions and painstaking but forward-looking compromises among the parties involved,” Seung said.
In a congratulatory speech, Democratic Party of Korea (DPK) Chairman Lee Hae-chan said there need to be drastic changes to resolve social and economic inequality.
“Changes bring hardship, but before social and economic inequalities become fixed without leaving hope, we need to search for a resolution,” Lee said in the speech read by DPK Secretary General Yoon Ho-joong on his behalf. “We will try our upmost to stabilize the livelihood of the people as well as constructing a base for innovative growth.”
Sohn Hak-kyu, the head of the minor opposition Bareunmirae Party, criticized the government for its excessive market interventions.
“The President and the government need to aid companies, but stop interfering in their operations. This should be set as a basic economic condition,” Sohn said.
“The most important part for our economy is for the government to give freedom to companies in order for them to grow further.”