---

---

Strategies for South Korea's Economic Leap: Business Restructuring and Employment Structure Reform

---

1. The Importance of Business Restructuring

• Business restructuring is essential to maintain a nation's economic competitiveness and to capture emerging markets.
• South Korea must maintain its competitive edge in promising future industries like semiconductors, smartphones, and electric vehicles, but it faces intense competition from countries like China.
• Economic diversification can be achieved by creating opportunities for continuous growth and the emergence of unicorn companies not only in major corporations but also in small and medium-sized enterprises.

---

2. Lessons from Japan's Example

• Japan's One-Shot Act is effective for business restructuring, maintaining market competitiveness through collaborations between large corporations and business diversification.
• Japan overcame its economic recession in the 1990s, establishing a stable employment structure through expanding regular employment and reforming labor policies.
• Although it lost competitiveness in industries like semiconductors and shipbuilding, Japan showed the possibility of recovery by focusing on service industries and niche markets.

---

3. Changes in Employment Structure

• Advantages of the Japanese Approach: Introduction of flexible working hours for specific occupations and the establishment of a stable base for regular employment.
• Current Problems in South Korea:
  • High youth unemployment and the rate of non-regular employment are increasing income inequality.
  • Industrial structure is biased towards some high-wage occupations.
• Recommended Directions:
  • Long-term employment policies are needed to expand regular employment among the youth.
  • Consider flexible working hours limited to certain high-wage research positions, such as semiconductor or AI research fields.
  • Legal adjustments are necessary to ensure that extending employment for the elderly does not negatively impact youth employment.

---

4. The Need for Pro-Business and Pro-Labor Policies

• Collaboration between businesses and workers is essential for long-term survival in the global economy.
• A balanced system that eases regulations for businesses while respecting the rights of workers needs to be designed.
• For example, while supporting future growth industries like the "Semiconductor Special Act," present solutions for improving wage structures and working environments based on social consensus.

---

5. Preparation for a Super-Aged Society and Shift in Awareness

• Shift from simply addressing low birth rates to adopting a system that accepts "population decline."
• Respond to the decline in the economically active population by encouraging women's employment and the economic participation of the elderly, as Japan has done.
• Create systems and job environments where young people can stably enter economic activity.

---

< Summary >

The South Korean economy requires a comprehensive innovation of its current industrial and employment structure.

Using Japan's example as a cautionary tale, South Korea needs to pursue business restructuring and employment structure reform to expand regular employment.

It is imperative to maintain and expand competitiveness in promising future industries and achieve balanced economic growth through pro-business and pro-labor laws and systems.

In particular, policies to address the unemployment problems of young people in their 20s and prepare for a super-aged society and population decline are necessary.

• Crafted by Billy Yang

[More…]

• South Korea's Semiconductor Industry Competitiveness
• Policy Measures for Employment Structure Change

*YouTube Source: [경제 읽어주는 남자(김광석TV)]

– 반도체도 뺏길까? 중국의 무서운 추격, 한국의 ‘일본화’ 위기 | 경읽남과 토론합시다 | 박상준 교수 3편