[Initial Insight] The Late Arrival of the Female Wave at Bank of Korea

Corporate Female Executive Ratio Remains Single Digit
Lee Chang-yong Governor Pushes for Female Talent Recruitment

[Asia Economy Reporter Seo So-jeong] The Bank of Korea has belatedly joined the wave of female empowerment by raising the proportion of female promotions at the director level to 20% in its recent personnel reshuffle. Among the 73 promoted employees, 18 were women, accounting for 24.7% of the total, marking an all-time high.

In particular, the proportion of promotions to managerial positions at levels 1 to 3 exceeded 20% for the first time, creating an encouraging atmosphere among female employees at the Bank of Korea. This is the result of Governor Lee Chang-yong, who took office this year, strongly supporting the appointment of female talent.

There have even been cases of rapid promotion from team leader to director in recognition of work ability. However, when looking closely, the number of female managers remains very low. Including this reshuffle, only four women have been promoted to level 1 so far.

Finding women at level 1 or above in the Bank of Korea’s organizational chart is like "picking stars from the sky." It is even more difficult to find female managers in key positions such as the Monetary Policy Department and the Research Department. Compared to the current trend where female CEOs born in the 1980s appear on major domestic internet portals, the Bank of Korea is far behind.

Voices of self-reflection are also emerging within the Bank of Korea. A senior executive recently met with reporters and, when asked whether the issue was the small number of women or the lack of opportunities for growth, answered "both." The honest reply was that it is difficult for women to seize opportunities for advancement in a highly congested personnel system and a closed organizational culture nicknamed ‘Han-gwon-sa (Bank of Korea Temple).’

However, there is hope that this atmosphere may change in the future. As the trend of ESG (Environmental, Social, and Governance) management strengthens and social calls for expanding female executives grow, the proportion of female promotions at levels 1 to 3 is gradually increasing at the Bank of Korea. The higher ratio of women among new hires is also a positive change. According to the new employee status (G5) over the past five years, there were 191 men and 102 women, showing an increase in the number of women.

Im Ji-won, a former Monetary Policy Committee member who retired in May, expressed pride that the proportion of female aides rose sharply from 0% four years ago to 60%. As the first economist to serve on the Monetary Policy Committee, Im appointed the Bank of Korea’s first female aide in 2018 and steadily increased their numbers.

Reflecting this atmosphere, the recent roundtable on ‘Women in Economics’ held last month in conjunction with U.S. Treasury Secretary Janet Yellen’s visit to Korea was highly enthusiastic. Female Bank of Korea employees showed serious interest as they asked Yellen, the first American woman to hold the titles of Federal Reserve Chair and Treasury Secretary, for ‘career management tips.’ Yellen encouraged them with practical advice, emphasizing the importance of finding a partner who can share household chores.

Although times have changed, the proportion of female executives in major domestic companies remains in the single digits. For example, among Samsung Electronics’ 1,083 executives last year, only 60 (5.5%) were women. In the ‘Glass Ceiling Index’ released by the British weekly The Economist in March, South Korea ranked last among 29 countries. Glass shines brighter when it breaks. Following criticism of the initial cabinet lineup as ‘Seo Onam’ (Seoul National University, 50s, male), the Yoon Seok-youl administration, facing recent approval rating declines and calls for personnel reform, should take this message to heart.