Korea: Keeping It Dynamic

IMF Blog, December 6, 2013

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Date of publication: December 6, 2013.
Arrival disrupted when dense fog caused the plane from Phnom Penh to be temporarily diverted from Seoul to Daegu.
Overall tone: energized and optimistic about Korea’s future and dynamism.
Emphasis on Korea’s rapid rise: "in a remarkably short period of time, Korea has risen from close to the bottom to close to the top—becoming the thirteenth most prosperous economy with an income per capita that is higher than the European Union average."

Korea’s recent and growing international roles highlighted:
- Held the annual presidency of the Group of Twenty advanced and emerging economies at the height of the global financial crisis in 2010.
- Host to the Green Climate Fund, whose aim is to help developing countries respond to climate change.
- Playing ever increasing leadership roles in other international institutions, including the IMF.
Soft power: the "hallyu" (Korean wave) spread through K-pop, Korean dramas, and technology (example: global popularity of Psy’s viral hit).

Core takeaway: to remain cutting edge, Korea needs to sustain inclusive growth and "give everybody the chance to develop their multiple talents and fulfill their rich potential."
Labor market inclusion:
- Special focus on providing more opportunities for young people and women, who "tend to be less included in the labor market than is the case in other Organization for Economic Cooperation and Development countries."
Youth concerns observed:
- Worries about growing inequality and social discontent.
- Specific fears cited: finding meaningful work, job security, and a living wage in an ever more competitive world.
Service sector challenge:
- Need for the services sector to "embrace more fully the dynamism that is the true hallmark of Korea," including tackling vested interests where needed.
Social safety net:
- Recommendation to strengthen the social safety net, with the assessment that "Korea can afford it."

Encounters with Korean women described as "some of the most talented, determined, and dedicated women anywhere in the world."
Specific leadership example: President Park Geun-hye noted as "the first woman elected to the highest office in Korea," whose life "has been dedicated to the service of her country."
Policy implication: ensure women have the chance to access and demonstrate their talents to support inclusive growth.

Emphasis on an enduring partnership between Korea and the IMF:
- Korea’s importance to the IMF underscored by the appointment of a Korean director of the Asia and Pacific Department.
Korea’s financial support to IMF programs:
- Korea committed "$15 million over five years" toward the IMF’s capacity building programs.
- Framed as "a strong display of global solidarity" to help other countries follow Korea’s development path.
IMF role offered to Korea:
- Provide international economic cooperation and a multilateral perspective.
- Offer a unique cross-country perspective on how different parts of the global economy fit together and can cooperate.

Sustain inclusive growth to keep Korea at the cutting edge of the global economy.
Expand labor market opportunities for young people and women to reduce exclusion relative to other OECD countries.
Strengthen the social safety net, which Korea is judged able to afford.
Increase dynamism in the services sector and address vested interests that impede it.
Deepen and sustain partnership between Korea and the IMF for mutual benefit and global cooperation.

Christine Lagarde, "Korea: Keeping It Dynamic", December 6, 2013.

韩国：继续保持活力
- 韩国：继续保持活力 (Markdown version)
- 韩国：继续保持活力 (PDF)
iMFdirect 블로그 홈:한국: 역동적인 성장을 지속, 2013년 12월 6일
- iMFdirect 블로그 홈:한국: 역동적인 성장을 지속, 2013년 12월 6일 (Markdown version)
- iMFdirect 블로그 홈:한국: 역동적인 성장을 지속, 2013년 12월 6일 (PDF)