South Korea needs to enhance productivity

Citation

(2010), "South Korea needs to enhance productivity", International Journal of Productivity and Performance Management, Vol. 59 No. 3. https://doi.org/10.1108/ijppm.2010.07959cab.004

South Korea needs to enhance productivity

Article Type: News From: International Journal of Productivity and Performance Management, Volume 59, Issue 3

South Korea needs to intensify efforts to enhance productivity for small and medium-sized firms and other service-sector companies in order to improve the nation’s overall growth potential, the top economic policymaker said Wednesday.

“Since 2000, the US and Japan have seen their productivity improve but ours has fallen along with the potential growth rate,” Finance Minister Yoon Jeung-hyun said at a meeting with other economy-related ministers.

“Considering that it is tough to inject such a huge amount of capital (into the economy) as seen in the 1970s and 1980s, it is imperative to raise productivity to ensure a higher potential growth rate,” he added.

He especially pointed out that the nation’s service sector and small and medium-sized companies have lower productivity than others, largely, he said, owing to regulations that hamper competition.

His emphasis on productivity comes as South Korea’s potential growth rate has been declining over the past years, raising the urgency of restructuring by the government of the nation’s economic structure to stimulate growth.