Deputy Prime Minister Unveils Outline of 'Dynamic Economy' Framework for Economic Policy
Enhancing Social Mobility through Expansion of Working-Age Population
Choi Sang-mok, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance, is giving a lecture on the theme of "Dynamic Economy - Sustainable Growth Strategy" at the Ministry of Economy and Finance Press Corps Workshop held on the 26th at the NH Nonghyup Life Sejong Education Center.
Choi Sang-mok, Deputy Prime Minister for Economy and Minister of Strategy and Finance, identified increasing the economic participation rates of youth and women and establishing growth ladders for small and medium-sized enterprises (SMEs) as the core of this year's major economic policy pillar, the "Dynamic Economy." To this end, plans are being considered to extend spousal parental leave days and increase the criteria for reflecting the hiring rate of high school graduates in public institution evaluations. The government plans to announce policies to enhance social mobility, including measures to improve work-family balance conditions and expand economic participation among women and youth, starting next month.
On the 26th, Deputy Prime Minister Choi held a workshop with the Ministry of Strategy and Finance press corps at the NH Nonghyup Life Sejong Education Center, stating that expanding social mobility must be the foundation of a dynamic economy. The Dynamic Economy is an economic structure promoted by the Yoon Suk-yeol administration, where social mobility circulates positively, the middle class strengthens, and mid-sized enterprises expand.
Deputy Prime Minister Choi cited the inherent dynamism in the DNA of the people and companies as the background for Korea's continuous economic leap since the 1960s. He said, "Our people and companies have dynamic DNA," pointing to examples such as the educational zeal of our parents who packed school uniforms in bundles for their children’s education even during the Korean War and the efforts of entrepreneurs who transformed the industrial structure from traditional textile industries to cutting-edge semiconductor industries as facets of our people's and companies' dynamism.
He also pointed out, "Innovation is declining due to various regulations, technological levels remain at about 80% of advanced countries like the United States, and the unbalanced growth strategy centered on manufacturing is facing limits, all of which are shrinking the dynamic aspects of our economy."
Deputy Prime Minister Choi emphasized that the goal of the Dynamic Economy is to create an economy where policies and systems are well-designed to allow the inherent dynamism to be properly realized. His vision is to build an economic structure where social mobility circulates positively, quality jobs and growth ladders for SMEs are created, and mid-sized enterprises expand.
In particular, he plans to restore the ladder of social mobility by raising the economic participation rates of youth and women. Deputy Prime Minister Choi said, "While changing the class structure from 20-80 to 30-70 is important, I believe it is more important to increase the possibility that the 80 can become 20." To this end, he is considering strengthening incentives for companies hiring women with career interruptions and extending spousal parental leave from the current 10 days of paid leave.
He noted that Korea’s economic participation rates for women and youth lag behind those of OECD countries, and this reality could lead to a decline in economic dynamism. Deputy Prime Minister Choi assessed, "It will take a long time to overcome the low birthrate problem, and in the short term, increasing the economic participation rates of women and youth will increase the working-age population, which will become the growth engine to raise the potential growth rate."
To increase youth economic participation, measures include strengthening employment service support to activate job seeking and employment after graduation and improving the system to raise the hiring rate of high school graduates in public institutions from the current 8%. To support customized asset formation, enhancements to benefits related to Individual Savings Accounts (ISA) are also under consideration. Deputy Prime Minister Choi said, "We are considering creating an integrated type that combines functions divided by industry sectors or lifting the one-account-per-person restriction."
The government has repeatedly emphasized that expanding social mobility must be the foundation of the Dynamic Economy. Since his appointment, Deputy Prime Minister Choi has presented the Dynamic Economy as a key keyword, emphasizing guaranteeing fair opportunities and raising social mobility. The government’s comprehensive roadmap related to the Dynamic Economy is expected to take shape in the second quarter of this year. Major tasks such as social mobility improvement measures and establishing growth ladders for SMEs will be announced sequentially next month.
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