By Judith Ugwumadu | 14 January 2015
South Korean President Park Geun-hy said lawmakers have a ‘golden opportunity’ this year in which to boost the economy and push through public sector reforms.
Park, the first female leader of the country, discussed her three-year plan for economic innovation earlier this week at Cheong Wa Dae, the executive office and official residence of the South Korean head of state.
In a speech in the capital Seoul, which marked the country’s 70th anniversary of liberation, Park said the government would take advantage of the opportunities to make 2015 a year of hope.
‘This year represents a golden opportunity to concentrate our strengths on reviving the economy and improving innovation in the country.’
She said the government would correct improper systems and practices in the ‘lax’ public sector and in the market and create an economy with a strong foundation.
Park said the plan would be led by structural reform in four major areas: the public sector, the labour market, education and finance.
‘Since the global financial crisis, the global economy has been in great transition, and international competition is getting [fiercer],’ she said. ‘To overcome these challenges, we laid out a three-year plan for economic innovation.’
The plan, published by the Ministry of Strategy and Finance yesterday, outlined how Korea would improve economic fundamentals and balance domestic consumption. It stated that it would lead the way on structural reform with public institution reform.
The aim, according to the report, is to improve public sector debt, curb public institution excess, boost real productivity, introduce a ‘one-strike out’ policy for subsidy corruption by strengthening systems and increase penalties and pass public employee pension reform by April.
It also urged public institutions to take the lead with labour market reform by increasing performance-based salaries and promoting peak wages.
The report requires the joint cooperation of the Ministry of Strategy and Finance, the Ministry of Employment and Labour, the Fair Trade Commission, the Ministry of Land Infrastructure and Transport, the Ministry of Agriculture, Food and Rural Affairs, and the Ministry of Oceans and Fisheries.
The government acknowledged that the public sector played a large part in the lives of the Korean people and as such said it would start with ‘public sector reforms and then move on to labour market, education and finance reform’.
