IMF chief calls for fixing gender inequality in Korea

International Monetary Fund (IMF) Managing Director Kristalina Georgieva delivers a keynote speech during a special forum hosted by the Korean branch of Women Corporate Directors (WCD) at the Government Complex in Seoul, Thursday. Yonhap

With the right policies to reduce the gender gap in number of hours worked to the average across peer countries, Korea could increase its per capita income by 18 percent, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Thursday.

"Empowering women can lead to higher incomes and stronger companies," Georgieva said.

"The good news is that you are part of a rising tide. Women's labor force participation in Korea has increased by 6 percentage points since 2011, from 49 percent to 55.5 percent. The bad news is that despite progress globally, gender gaps are not closing. And Korea still has among the highest gaps for rich countries, with 18 percent fewer women working than men, and receiving 31 percent lower wages."

Georgieva introduced these numbers during her speech at a special forum hosted by Women Corporate Directors (WCD) Korea, themed "Empowering Women in the Global Economy."

The event, held at the Government Complex in Seoul, was attended by 80 female executives and CEOs, as well as 60 leaders from domestic financial firms — predominantly men — and also Finance Minister Choo Kyung-ho.

Bank of Korea Monetary Policy Board member Suh Young-kyung, right, asks a question to International Monetary Fund (IMF) Managing Director Kristalina Georgieva during a special forum hosted by Women Corporate Directors (WCD) Korea at the Government Complex in Seoul, Thursday. Courtesy of Bank of Korea

Bringing in an example from women's golf, where 33 of the world's top 100 players are Korean, Georgieva emphasized the importance of a supportive environment. "Just as corporate sponsorship of athletes and tournaments fosters a pipeline of talented golfers, corporate and government action is needed to advance women in every field," she said.

Georgieva then outlined three areas to elevate Korea's performance.

First, she proposed expanding support to help women balance work and family responsibilities. This includes broadening existing policies to encompass part-time, temporary and self-employed workers, who are predominantly women. Second, she recommended making the labor market more nimble, for instance by guaranteeing flexible working hours to a broader range of workers. Third, she suggested updating social norms, such as transitioning from seniority-based to performance-based pay systems.

In the ensuing panel discussions, notable figures including Citibank Korea CEO Yoo Myung-soon, Bank of Korea Monetary Policy Board member Suh Young-kyung, Lotte Card ESG Committee Head Lee Bok-sil and Naver CEO Choi Soo-yeon exchanged views on management transformation in the global environment.

"Among the top 1,000 corporations in Korea, only 2.4 percent have women in leadership positions, and a mere 0.5 percent are female CEOs without familial ties to the founders," Choi said. "To shift the perception of female CEOs from being seen primarily as women to being recognized first and foremost for their leadership, it's crucial to increase the presence of women in these roles."

Participants watch a promotional video during a special forum hosted by Women Corporate Directors (WCD) Korea at the Government Complex in Seoul, Thursday. Seated in the front row are prominent figures from domestic financial firms. Yonhap