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| Heo Kyung-wook, right, a professor at the Korea Development Institute, and other panelists discuss ways to tackle the nation's economic slowdown during the Korea Forum 2016 at the Lotte Hotel in central Seoul, Wednesday. From left are Lee Il-houng, president of the Korea Institute for International Economy Policy; Yoon Won-seok, Korea Trade-Investment Promotion Agency executive director; Park Hong-jae, Hyundai Motor vice president; and Heo. / Korea Times photo by Seo Jae-hoon |
By Kim Jae-won
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| Former Finance Minister Yoon Jeung-hyun / Korea Times photo by Hong In-ki |
At the Korea Forum 2016, hosted by the Hankook Ilbo, the sister paper of The Korea Times, at the Lotte Hotel in Seoul, Yoon said labor reform is also essential for the country to attract more foreign investment and prevent companies from moving their operations overseas.
"The Korean economy is struggling with low growth of less than 3 percent, and the social conflict is acute due to the widening income gap between the rich and poor," Yoon said. "We are at a critical juncture. How we cope with these challenges is crucial. It could be an opportunity or a crisis."
He stressed the importance of drastic, consistent corporate restructuring and bold deregulation to revitalize the economy.
Yoon said that implementing meritocracy in the labor market was one of the key factors in reform to boost efficiency in the workplace. The lifelong bureaucrat criticized the nation's strong unions, calling them "aristocrats" in the labor sector.
He also pointed out that Korea should reform its education system to nurture students more creatively, driving them to lead economic growth in the era of a "fourth industrial revolution."
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Yoon said that the government should allow colleges to have more authority in their admissions and management, paving the way for them to offer quality education services to students.
"The Korean education system fails both in the levels of quantity and quality," he said. "In the era of knowledge and information, we need creativity and excellence."
His remarks came as the country is suffering from low economic growth — failing to reach 3 percent. The Bank of Korea predicted Tuesday that Asia's fourth-largest economy would expand 2.8 percent this year, cutting its forecast from 3 percent three months ago. Last year, the nation's gross domestic product (GDP) increased 2.6 percent.
Yoon, who was in charge of the nation's fiscal policy under the Lee Myung-bak administration in the early 2010s, said that Korea should adopt more competition in its education system, as he believes this will help students become more creative.
Yoon also argued that the country needs to increase its tax burden to expand welfare. Korea's total tax revenue as percentage of GDP reached 18 percent in 2014, far lower than the OECD average of 26.1 percent, according to OECD data, Yoon said. That of France marked 45.2 percent while Sweden's figure reached 42.7 percent.
The former finance minister raised the governance issue, arguing the country needs to give more authority to the cabinet while reducing the powers of parliament. He also said Korea needs to adopt "Protestant's ethics" such as honesty and diligence, which can fuel economic growth.
He regretted that the country is losing spirit of community and the governance by the law which destroys the society. Yoon said that people should learn that freedom is not free, taking their own responsibility to support the community.
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