KDI Holds Forum on OECD Korea Economic Report

'2020 OECD Korea Economic Report Forum' Held on the 11th

Participants are discussing at the '2020 OECD Korea Economic Report Presentation Forum' held at the Korea Development Institute (KDI). (Photo by KDI)

[Asia Economy Reporter Jang Sehee] The Korea Development Institute (KDI) held the '2020 Organisation for Economic Co-operation and Development (OECD) Korea Economic Report Forum' on the 11th.

The OECD evaluated that, amid the global economic recession, the Korean government has performed relatively well compared to other OECD member countries by actively responding to the novel coronavirus disease (COVID-19). However, it also noted concerns that recovery could be slow due to the global economic downturn.

The forum consisted of sessions on macroeconomic diagnosis and recommendations, as well as sessions on preparing for aging and the spread of digital technology. After presentations by the OECD Secretariat in each session, there was time for discussion among participants.

Christophe Andr?, OECD Korea Economic Officer, positively evaluated the Korean government's comprehensive support for households and businesses to prevent the economic recession caused by COVID-19.

He also positively assessed the expansionary fiscal policy and recommended its continuation for the time being. While maintaining an accommodative monetary policy stance, he emphasized the need to consider the use of unconventional monetary policy tools.

Additionally, he urged the resolution of labor market and inter-industry polarization issues and the development of policies related to aging. He pointed out that wage inequality is caused by the dual structure of the labor market and productivity gaps between large and small-to-medium enterprises, as well as between manufacturing and service industries, and stressed the need to address polarization problems.

Considering the high proportion of elderly population among OECD countries, he advised strengthening social safety nets such as expanding basic pensions and implementing job policies for the elderly.

Meanwhile, from the OECD side, Christophe Andr?, Vincent Kuhn, Head of the Economic Review Division of the Economics Department, economist Beom Jinwan, and economist Mathilde Park attended. On the Korean side, experts from major domestic research institutions including the Ministry of Strategy and Finance participated.

In his opening remarks, KDI President Choi Jeongpyo said, "Not only short-term economic response policies to overcome the COVID-19 crisis but also structural reforms for population aging and digital economy transition are necessary," adding, "A sustainable growth strategy must be established."