“In a situation where growth due to inputs such as labor and capital has reached its limits, improving productivity across society will be the only support to sustain the dynamism of our economy.”Cho Dong-chul, KDI President
The Korea Development Institute (KDI), a government research institute, held the 2024 KDI Conference at the JW Marriott Hotel in Seoul on the theme of 'Reform measures for enhancing productivity of the Korean economy.' KDI discussed specific reform tasks to maintain the dynamism of our economy and announced policy directions to improve the productivity of the Korean economy.
Through an opening address, Cho Dong-chul, KDI President, noted, “Our country, which has grown so rapidly that it is called the ‘Miracle on the Han River,’ has been experiencing a continuous decline in growth rate since the 1990s,” and expressed the hope that “this conference will present key structural reform tasks in the framework of improving productivity across society, contributing to the healthy development of our society.”
Cho further emphasized, “Our society has faced great difficulties in promoting reforms to enhance productivity over the past 10 to 20 years,” and stressed, “If the benefits of reform across society exceed the expense, the reform can be justified.”
Cho stated, “KDI aims to emphasize the enhancement of productivity that has sustained the miracle of our economy,” and explained, “If we turn a blind eye to structural reforms, being only immersed in immediate outcomes, we might face a more difficult economic situation 10 to 20 years from now.” He added, “We intend to identify areas that need improvement to enhance productivity across society to sustain economic dynamism and explore directions for change.”
Nam Chang-woo, KDI Vice President, delivered a keynote speech on the theme 'For the future of the Korean economy.' Nam diagnosed, “The 'total factor productivity,' the driving force of our country's economic growth and the efficiency of economic structure, is rapidly declining,” and noted, “Labor productivity in service-related small and medium enterprises (SME) is very low.”
Nam continued by stating, “Enhancing the driving force of economic growth ultimately increases the possibility of securing social stability.” Nam proposed reform measures in three frameworks: ▲ rational allocation of production resources ▲enhancement of creative innovation ▲strengthening of solid social capital.
The first session is on the ‘rational allocation of production resources.’ Yang Yong-hyun, head of KDI's Regulatory Research Office, presents on ‘regulatory innovation strategy,’ Kim Min-seop, KDI research fellow, on ‘labor market reform,’ Lee Jang-won, senior research fellow at the Korea Labor Institute, on ‘modernization of labor-management relations,’ and Kim Min-ho, KDI research fellow, on ‘rationalization of corporate support.’ The panel discussion is chaired by Kim Yong-seong, a professor at Korea University of Technology and Education, with Kang Chang-hee, a professor at Chung-Ang University, and Oh Ji-yoon, a professor at Myongji University, participating.
The second session is themed ‘enhancement of creative innovation.’ Kim Hee-sam, a professor at the Gwangju Institute of Science and Technology (GIST), presents on ‘enhancement of social mobility,’ Kim Yi-kyung, dean of graduate school at Chung-Ang University, on ‘autonomy of secondary education,’ and An Jun-mo, a professor at Korea University, on ‘efficiency improvement of national R&D.’ The session is chaired by Ko Young-sun, president of the Korea Educational Development Institute, with Park Yoon-su, a professor at Sookmyung Women's University, and Jeong Yu-han, a professor at Dankook University, participating as panelists.
The third session covers ‘strengthening of solid social capital.’ Park Jin, a professor at the KDI School of Public Policy and Management, presents on ‘regional balance development measures,’ Cho Seong-ik, head of KDI's Industry and Market Policy Department, on ‘rationalization of large corporation discipline,’ and Lee Jin-guk, senior research fellow at KDI, on ‘modernization of inter-corporate transactions.’ The session is chaired by Cho Seong-wook, a professor at Seoul National University, with Yun Kyung-su, a professor at Gachon University, and Cho Im-gon, a professor at Kyonggi University, planned to participate as panelists.