Inclusive growth review of Korea : creating opportunities for all.

Foreword
Acknowledgements
Executive summary
	Korea’s balanced response to the Covid-19 pandemic has addressed the health emergency, while limiting the damage to the economy and people’s livelihoods
	Korea’s economic performance in the last decades has been impressive, but the growth model has left many behind
1 Progress towards inclusive growth in Korea
	Introduction
	Inclusive growth trends in Korea
		Sharing equitably the fruits of growth
		Equal opportunities and foundations of future prosperity
		Understanding the drivers of inequalities through the Productivity-Inclusiveness Nexus
		Building efficient and responsive governments
		Megatrends are shaping challenges and opportunities for inclusive growth tomorrow
	A vision for an innovative and inclusive nation
		The trajectory of Korea’s policy developments towards inclusive growth
		The current administration is putting inclusive growth in the spotlight
		Getting ready for the future of work by addressing labour market dualisms and social protection as part of the administration’s pillar on inclusive growth
		Supporting business dynamism with the administration’s innovation policy package
		Main achievements
		Stepping up efforts to promote inclusive growth through a coherent people-first strategy
	Key dynamics to steer policy action on inclusive growth
		Investing in people and places left behind, creating opportunities for all
		Supporting inclusive labour markets and business dynamism
		Governing a complex and multi-dimensional inclusive growth policy agenda
		Effective engagement with citizens
	Monitoring progress with a dashboard of inclusive growth indicators and tracking the impacts of policies on distributional outcomes
	Conclusion: Making inclusiveness happen in Korea
	References
		Annex 1.A.
	Notes
2 The future of work and skills
	Introduction and key findings
		Breaking down labour market duality
		Helping workers to successfully navigate a rapidly changing labour market
		Adopting specific policies for under-represented and disadvantaged groups
		Preparing for future opportunities and challenges in a rapidly changing labour market
		Implementing the above comprehensive policies to meet work and skills challenges
	Korea’s future of work challenges: What does the international comparison suggest?
		New technologies
		Population ageing
		The global population will increase and migration pressures are likely to grow
	Policy requirements for a more inclusive and productive future of work in Korea
		Tackling labour market dualism
			Challenges
			Policy insights
				Provisions governing the duration of contracts for fixed-term workers
				The remedial process to redress discrimination
				Generating a shift from protecting jobs to protecting individuals
				Using the minimum wage as a tool to smooth the wage differential between non regular and regular workers
				Making the most of collective bargaining…
				…and of social protection
		Providing opportunities for up- and re-skilling during working life
			Challenges
			Policy insights
				Strengthening training and know-how agreements
				Measurement and recognition of acquired skills
				Removing obstacles to the take-up of training
				Portability of training right and skills
	Policy options for strengthening the inclusion of under-represented groups
		Women
			Policy insights
				Strengthening the use of maternity and parental leaves
				The availability of high quality childcare
				Facilitating women’s return to work after an absence from the labour market
				Enhancing workplace flexibility to improve work life balance
				Towards an education environment that supports fertility
		Youth
			Policy insights
				Increasing the effectiveness of career guidance
				Promoting upper secondary vocational education
				Fostering collaboration with employers
		Older workers
			Policy insights
				Making work more rewarding for older workers and tackling old-age poverty
				Addressing wage rigidities and mandatory early retirement
				Strengthening public employment services and active labour markets
				Tackling working conditions
		Immigrant workers
			Reinforcing options to access better quality jobs
				Strengthening the attractiveness of Korea to qualified foreigners
	References
	Notes
3 The future of doing business
	Summary and key policy insights
	Reconciling growth and inclusiveness in Korea: main challenges
		Imbalances in the Korean business environment
		The inclusion challenge
		An uncertain international environment
		Towards a virtuous circle between productivity, business dynamism and inclusiveness
	Addressing the productivity gaps
		Different types of productivity gaps
			Productivity disparities between industries
			Productivity disparities between SMEs and large firms
			Productivity disparities between laggards and frontier firms
		Productivity gains are not shared equally among workers
			Wage gap between large manufacturing firms and services SMEs
			Rising wage gap between top firms and laggards in manufacturing
		The challenge of digital adoption for small firms in Korea
		Leveraging the full potential of technology, human capital and skills for inclusion
		Policy insights
			Policy insight #1: Encouraging a rebalancing of productivity growth towards services
				Create a level playing field between manufacturing and services
				Introduce product market reforms in lagging service sectors
				Reduce barriers to international trade and inward foreign direct investment
			Policy insight #2: Creating a better environment for SMEs to work with large firms and be more productive
				Prevent large firms from capturing the productivity gains of smaller firms and encourage co-operation between large and small firms
				Strengthen business-academia ecosystems and support the development of start-ups within universities
				Address the skill shortage of SMEs and facilitate the diffusion of technologies that can boost their productivity
				Review and assess existing programmes and support aimed at fostering women’s entrepreneurship and encourage the acquisition of STEM skills
	Promoting business dynamism
		Heterogeneity in the SME landscape
		Barriers to scaling-up
		Policy insights
			Policy insight #3: Unleashing the growth of SMEs
				Address size contingency and transfer of ownership in schemes supporting firms, labour laws, tax policy and in the credit market
				Support scale up of small firms
				Reduce the cost of experimenting and venturing in new activities
			Policy insight #4: Assessing, evaluating and streamlining existing SME support programmes
				Help start-ups and SMEs navigate a complex and potentially confusing landscape
				Assess, evaluate and streamline
				Provide support to all SMEs rather than cherry-picking specific activities or types of firms
	Re-thinking the global value chain strategy of Korea
		Global value chains in the midst of rising protectionism
		Maintaining the central position of Korea in GVCs
		Increasing income derived from GVCs
		Addressing the impact of GVCs on inclusiveness
		Policy insights
			Policy insight #5: Designing a more inclusive GVC strategy
				Improve the connectivity of Korean firms to diversify exports
				Promote inclusiveness in GVCs by increasing the participation of SMEs and encouraging a rebalancing of GVCs towards services
				Mitigate the impact of protectionism and facilitate the reorganisation of GVCs
	Conclusion and priorities
	References
	Notes