Korea’s fin min, c.bank chief to jointly deal with demographic crisis
Se-Min Huh
5 HOURS AGO
South Korea’s finance minister and central bank chief on Monday agreed to deal with the world’s lowest fertility rate, the most urgent task, to maintain the long-term growth momentum of Asia’s fourth-largest economy.
Minister of Economy and Finance Choi Sang-mok and Bank of Korea Governor Rhee Chang-yong discussed structural reform measures for the sustainable economy such as steps to counter weakening growth potential due to the falling birth rate and aging population, the concentration in the Seoul metropolitan area and low social mobility.
“To solve the demographic crisis, the most urgent task, we will seek opinions from the Bank of Korea and find measures together,” Choi told reporters in the ministry.
Rhee said the country needs new structural steps to cope with the declining population growth.
“We have reached a limit in leading the economy by repairing the old economic structure little by little,” Rhee said.
That was far lower than the rate of 2.1 per woman needed for a steady population and well behind the rate of 1.24 in 2015 when concerns about issues such as the cost of housing and education were lower.
BALANCED REGIONAL DEVELOPMENT, INFLUX OF FOREIGNERS
Rhee stressed the country needs to seek balanced regional development to solve the demographic crisis.
“It is hard to achieve the intended target with dispersed investments in regions amid the falling population in terms of investment efficiency and sustainability,” he said. “It is necessary to shift the paradigm of balanced regional development to focus on non-Seoul metropolitan areas.”
Choi, also the country’s deputy prime minister, emphasized the influx of foreigners.
“We need to actively attract global talents to enhance the competitiveness of national industries and deal with the population issues by establishing an open talent ecosystem,” Choi said.
Rhee was the first BOK chief to visit the finance ministry. None of his predecessors made such a visit, considering the central bank’s independence from the government.
Rhee focused more on structural problems dragging the South Korean economy instead.
He discussed with Choi various topics such as service sector development, measures to bolster economic activities for young and old people, as well as steps to support families in raising birth rates.