IMF Managing Director Visiting Korea: "More Female Leaders Lead to Higher Organizational Performance"

"Women, Diversity Promotion is Important"
"You Must Show Your True Self"

Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF) (center in photo), is delivering the keynote speech at the special forum hosted by the Korea Chapter of the International Women's Forum, held on the 14th at the International Conference Hall of the Government Complex Annex.

"Financial institutions with a higher proportion of senior female executives and greater gender diversity in their boards tend to have lower non-performing loan ratios and greater financial stability. When there are more female leaders and gender-balanced decision-making, organizational performance can improve," said Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), during her keynote speech on "The Global Economy and Women's Empowerment" at a special forum hosted by the Korea chapter of the International Women Directors Association on the afternoon of the 14th at the International Conference Hall on the 3rd floor of the Government Complex Annex.

Georgieva, who is from Bulgaria, is the second female Managing Director in IMF history, following her predecessor Christine Lagarde (currently President of the European Central Bank).

She emphasized the need to prioritize direct support to help women balance work and family responsibilities. Policies such as childcare support and parental leave should be expanded to include part-time workers and self-employed individuals, and re-education programs and career retention support should be increased to help married women returning to the labor market enter high-wage sectors.

Flexible Labor Market as a Priority

She also identified a flexible labor market as a key priority. She stressed the importance of enabling more workers to use flexible working hours, as seen in Finland and Sweden, and reducing the costs of hiring and firing employees. Additionally, she mentioned the need to provide incentives for men to take parental leave and to shift the pay system from seniority-based to performance-based.

She added, "Empowering women can increase income and strengthen company competitiveness," and cited IMF research showing that if South Korea reduces the gender gap in working hours to the average level of peer countries through appropriate policies, per capita national income could increase by 18%."

Seo Young-kyung, a member of the Monetary Policy Committee, is asking a question to Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), during a panel discussion.

Following the keynote speech, a panel discussion was held with Managing Director Georgieva, Yum Yoomsoon, President of Citibank Korea, Seo Youngkyung, a member of the Financial Services Commission, Lee Boksil, Chair of the ESG Committee at Lotte Card, and Choi Sooyeon, CEO of Naver. During the panel, Seo Youngkyung introduced South Korea's ultra-low birthrate situation and inquired about long-term strategies to raise the birthrate.

Georgieva responded, "Countries like Sweden and Denmark have made parental leave very universal and encouraged men to take parental leave as well," adding, "Through policies that provide affordable childcare, women are supported to work longer while maintaining a good work-life balance."

Choi Sooyeon, CEO: "Only 2.4% of CEOs among Korea's Top 1000 Companies Are Women"

When Choi Sooyeon, CEO of Naver, asked about ways to promote female leadership in the AI era, Georgieva emphasized the importance of ensuring that corporate boards are not composed solely of male candidates. Choi highlighted, "Only 2.4% of CEOs among Korea's top 1000 companies are women, and among them, only 0.5% are women who are neither founders nor related by blood," stressing, "To move beyond perceiving female CEOs primarily as women rather than as CEOs, there must ultimately be more female CEOs."

In response, Georgieva shared a personal tip she learned through experience: "Women should never try to become like men. It is important to promote diversity as women. Believe in and show your authentic self," she said.

Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF) (center), is participating in a panel discussion with Bok-Sil Lee, Chair of the ESG Committee at Lotte Card, Yu-Myeong Soon, President of Citibank Korea, Young-Kyung Seo, Monetary Policy Committee member, and Soo-Yeon Choi, CEO of Naver (from left), at a special forum hosted by the Korea Chapter of the International Women's Directors Association held on the 14th at the International Conference Hall of the Government Complex Annex.

Georgieva cited an example from her time in charge of recruitment at the European Union. She said, "Male candidates met three out of five criteria and were considered the best fit, while female candidates met only three out of five criteria and did not meet the remaining two," adding, "Just as it is difficult to attract people who do not fight or actively step forward, women should abandon hesitation, believe in themselves, and act proactively."

She recalled her early days at the World Bank, saying, "When I first wore a floral jacket to work, I noticed there were no other women around and no one else wore floral jackets, so I considered changing into a black suit, but now I no longer wear gray suits," encouraging, "Show your authentic self." On this day as well, Georgieva wore a striking red outfit.

Georgieva candidly admitted that balancing work and life was not easy. She said, "There were many sacrifices in my personal life," and "There were many times I could not celebrate my children's birthdays because of work." She added, "However, we have an obligation to share time with friends and family," and emphasized, "The most precious time is the time I spend with my two grandchildren and my daughter," urging, "Please make sure to spend time with your family."

She also highlighted the importance of societal perspectives on women. She said, "When I previously worked at the World Bank, most senior positions were held by men, and when I visited offices of high-ranking politicians such as prime ministers on business trips, most people thought I was an interpreter (laughs)," adding, "The way I dealt with this was to ask male team members to introduce me." While social norms are unavoidable, she explained that rather than merely complaining, smiling and finding ways to overcome these challenges can lead to better outcomes.

When asked about measures the IMF takes to promote women's participation within the organization, she emphasized, "First, it is important to identify the categories where women face challenges." Georgieva gave a specific example: "In Washington D.C., the burden of childcare was a major challenge," and "We provided additional financial support to employees with children to cover childcare costs, which employees valued highly." She also said, "When women are a minority within an organization, it is difficult to form the desired dynamics," and "We supported men to actively participate in gender equality efforts and enabled women to consider career development through mentoring."