Publications & Documents

The economic development of Korea is widely considered as a success story. Yet, as the country joins the ranks of the world’s most advanced economies, its rapid pace of development has not fully reached every part of its territory. The pace of urbanisation, particularly around Seoul, has placed mounting pressure on the capital’s quality of life, while in rural regions the country’s success has felt distant. To address these regional disparities, successive governments have pursued a policy of balanced national development, with major initiatives aimed at spreading economic opportunities throughout the country while at the same time transferring authority and resources to regional and local governments, to increasingly empower them to navigate their own path forward. This study takes stock of these efforts in the context of rural development and finds evidence of progress in several areas, yet opportunities remain in others. The study includes advice and recommendations on multi-level governance, rural-urban linkages and other issues drawn from the experience of OECD countries on how Korea’s efforts in pursuit of inclusive growth may be further strengthened to improve the well-being of the country's rural regions.

Skills are central to the capacity of countries and people to thrive in a rapidly changing world. Recovering from the COVID-19 pandemic will require countries to co-ordinate interventions to help recent graduates find jobs, reactivate the skills of displaced workers and use skills effectively in workplaces. Megatrends such as globalisation, climate change, technological progress and demographic change will continue to reshape work and society. Countries should take action now to develop and use more effectively the skills required for the world of the future and at the same time make their skills systems more resilient and adaptable in the context of change and uncertainty. The OECD Skills Strategy provides countries with a strategic approach to assess their skills challenges and opportunities. The foundation of this approach is the OECD Skills Strategy framework allowing countries to explore how they can improve i) developing relevant skills, ii) using skills effectively, and iii) strengthening the governance of the skills system. This report applies the OECD Skills Strategy framework to Southeast Asia, providing an overview of the region’s skills challenges and opportunities in the context of COVID-19 and megatrends, and identifying good practices for improving skills outcomes. This report lays the foundation for a more fully elaborated Skills Strategy for Southeast Asia.

This report, commissioned by the Korean Ministry of Trade Industry and Energy and written jointly by the International Energy Agency and the Korea Energy Economics Institute, examines current conditions and future opportunities to ensure electricity security and system flexibility with higher shares of variable renewable energy in Korea. The report examines the objectives from the 9th Basic Plan for Long-term Electricity (BPLE) in terms of energy demand and variable renewable energy deployment, and provides options to maintain the country’s current high level of electricity security, while integrating increasing shares of solar PV and wind. Taking into consideration the existing institutional and market structure, the analysis first looks into how flexibility needs may evolve in Korea’s power system and suggests technical options to satisfy these requirements making use of flexible generation, storage, demand-side flexibility and grids. The report then looks at key aspects of operational security and long-term planning, both recognising current progress in terms of grid and market code updates as well as suggesting improvements to the long-term planning process, through for example integrated resource planning. The report suggests market design improvements that can be implemented within the current framework, considering price formation mechanisms and integration with the existing emissions trading scheme. Finally, the report examines key aspects of climate and cyber resilience, suggesting improvements that can be integrated into long-term planning to ensure resilience across the whole value chain.

In recent years Korea has stepped up efforts to reduce inequalities in recognition that a fairer economic model is also the most sustainable one. In order to support this new policy direction, the OECD has carried out novel analysis of inclusive growth building on its Framework for Policy Action, developed by the OECD to improve the prospects of the groups left behind. The Inclusive Growth Review of Korea applies, for the first time, the Framework at the national level. Using a dashboard of indicators, the Framework presents policy recommendations to sustain and more equitably share the gains of economic growth by investing in people left behind, supporting business dynamism and inclusive labour markets, and building efficient and responsive governments. In addition, the Inclusive Growth Review of Korea finds that digitalisation risks to compound the disparities of Korean labour markets, and calls for renewed efforts to reduce the lack of opportunities for up- and re-skilling of the working-age population (Chapter 2). To improve the business environment, Korea should address the unbalanced growth across sectors and firm size and unequal distribution of productivity gains across population groups (Chapter 3).

Korea is a top player in emerging digital technologies, with an outstanding digital infrastructure and a dynamic ICT sector. The COVID-19 outbreak highlighted the importance of digitalisation to contain the spread of the virus, by allowing quick testing and tracing of infected people, and spurred the development of the 'untact economy'. Remote access both facilitated physical distancing and mitigated the economic impact of the crisis by enabling more people to continue working. Digital technologies offer opportunities to raise firms’ productivity and the population’s well-being. However, wide productivity gaps between large firms and SMEs and between manufacturing and services weigh on economy-wide productivity, which is far below the OECD average. A wide skills gap between youth and older generations prevents an increasing share of the population from taking part in and enjoying the benefits from a digitalised economy. This paper suggests ways to narrow the digital divide by enhancing the diffusion of digital technologies among firms and among individuals. Increased participation in quality ICT education and training for students, teachers, SME workers and older people is key to address the lack of adequate skills and awareness of digital benefits or dangers (online security, cyberbullying, addiction). Promoting innovation networks between SMEs, academia and large firms through vouchers or platforms can support SMEs’ R&D and commercialisation of innovative goods and services. Waiving stringent regulations through regulatory sandboxes can help identify and alter regulations that hinder the adoption and diffusion of digital technologies.

Social protection systems use a range of entitlement criteria. First-tier support typically requires contributions or past employment in many countries, while safety net benefits are granted on the basis of need. In a context of volatile and uncertain labour markets, careful and continuous monitoring of the effectiveness of income support is a key input into an evidence-based policy process. This paper proposes a novel empirical method for monitoring the accessibility and levels of safety net benefits. It focusses on minimum-income benefits (MIB) and other non-contributory transfers and relies on data on the amounts of cash support that individuals in need receive in practice. Results show that accessibility and benefit levels differ enormously across countries – for instance, in 2015/16, more than four out of five low-income workless one-person households received MIB in Australia, France and the United Kingdom, compared to only one in five in Greece, Italy and Korea, three countries that have since sought to strengthen aspects of safety-net provisions.

The International Energy Agency (IEA) regularly conducts in-depth peer reviews of the energy policies of its member countries. This process supports energy policy development and encourages the exchange of international best practices. The Korean government is committed to substantially increasing the share of renewable energy sources in the electricity supply, gradually phasing out coal and nuclear power from the energy mix, significantly improving energy efficiency, and fostering the country’s nascent hydrogen industry. Many of these measures will help Korea advance its energy transition and improve its energy security, a high priority given the country’s limited domestic energy production. The government’s pledge of a Green New Deal as part of its Covid-19 economic recovery package in July 2020 is a significant step towards accelerating Korea’s energy transition. Achieving the ambitions of the Green New Deal will require addressing regulatory and institutional barriers, introducing more flexible energy markets, and making use of the country’s expertise in advanced technologies and innovative capacity. In this report, the IEA provides recommendations for further improving Korea’s policies to help the country guide the transformation of its energy sector towards a secure and sustainable future.

The work of early childhood education and care (ECEC) professionals is the major driver of the quality of an ECEC system. As evidence accumulates on the strong benefits of investing in early education, countries need effective policies to attract, maintain and retain a highly skilled workforce in the sector. This report looks at the makeup of the early childhood education and care workforce across countries, assessing how initial preparation programmes compare across different systems, what types of in-service training and informal learning activities help staff to upgrade their skills, and what staff say about their working conditions, as well as identifying policies that can reduce staff stress levels and increase well-being at work. The report also looks at which leadership and managerial practices in ECEC centres contribute to improving the skills, working conditions and working methods of staff. The OECD Starting Strong Teaching and Learning International Survey (TALIS Starting Strong) is the first international survey that focuses on the early childhood education and care workforce. It offers an opportunity to learn about the characteristics of ECEC staff and centre leaders, their practices at work, and their views on the profession and the sector. This second volume of findings, Building a High-Quality Early Childhood Education and Care Workforce, examines factors that influence the skills development of ECEC professionals, their working conditions and well-being at work, and leadership in ECEC centres.