Gangwon Province Holds September Economic Study... In-Depth Discussion on Global Economic Issues

In-depth Discussion on Global Economic Issues
Such as Korea's Productivity and the Federal Reserve's Monetary Policy
Special Lecture by Jang Yongseong, Monetary Policy Board Member of the Bank of Korea,
Held at Liberty Hall, Gangwon Research Institute

Gangwon Special Self-Governing Province (Governor Kim Jin-tae) held its September Gangwon Economic Study at 2:00 p.m. on the 24th at Liberty Hall, Gangwon Research Institute, under the theme "Why is Korea's Productivity Only Half That of the United States? The Federal Reserve's Monetary Policy."

A panoramic view of Gangwon Provincial Government Building. Provided by Gangwon Provincial Government.

About 70 participants, including representatives from related organizations such as Gangwon Technopark, Gangwon Economic Promotion Agency, Gangwon Credit Guarantee Foundation, economic associations, and public officials, attended the lecture to deepen their understanding of global economic issues.

Jang Yongseong, a member of the Monetary Policy Board at the Bank of Korea, who delivered the lecture, identified the inefficiency in talent allocation as the root cause of Korea's low productivity. He emphasized, "When it comes to the talent pool, Korea is in no way inferior to the United States," adding, "Our low productivity stems not from a lack of talent, but from issues in resource allocation."

He further explained, citing the high academic achievement and intelligence quotient of Korean students, that "talent is not being utilized efficiently due to factors such as seniority-based promotion, school and regional ties, blood relations, and the job rotation system." In contrast, he pointed out that the United States "continues to entrust responsibilities to those who perform well, thanks to a talent-based promotion and placement system," highlighting the need for Korea to improve its approach to talent utilization.

Regarding global economic issues, he analyzed that "the interest rate policy of the Federal Reserve is more about following the market than leading it," and noted that "the structural imbalance in the global capital market, based on U.S. consumption and Chinese savings, is likely to persist for the time being."

Kim Manho, Director of Economic Affairs at Gangwon Special Self-Governing Province, said, "The lecture provided an easy and comprehensive understanding of global economic trends and offered a valuable opportunity to consider the direction Gangwon Province should pursue going forward."

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