Publications & Documents

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.

Ce rapport est une édition spéciale du Tableau de bord de l’OCDE sur le financement des PME et des entrepreneurs, publication phare de l’OCDE. Il examine en détail les conséquences du COVID-19 sur l’accès des PME au financement, ainsi que les mesures prises en conséquence par les pouvoirs publics. Il apparaît qu’avant la crise, les conditions de financement étaient globalement favorables pour les PME et les entrepreneurs, qui bénéficiaient de faibles taux d’intérêt, de critères accommodants d’octroi des crédits et d’une offre de plus en plus diversifiée d’instruments de financement. Mais la crise du COVID‑19 a profondément bouleversé l’accès des PME au financement. Plus particulièrement, l’effondrement brutal du chiffre d’affaires des entreprises a provoqué de graves pénuries de liquidités qui ont mis en danger la survie de bon nombre d’entreprises viables. Ce rapport fait état d’une augmentation de la demande de prêts bancaires au cours du premier semestre de 2020, et d’une stabilité de l’offre de crédit grâce à l’action des pouvoirs publics. Parallèlement, on a observé un recul d’autres sources de financement, en particulier l’apport de fonds propres au stade du démarrage. Le rapport réunit des données sur le périmètre et l’ampleur des mesures prises par les gouvernements dans le monde, et en précise les principales caractéristiques. Il décrit les principaux enjeux stratégiques du financement des PME qui se poseront au cours des prochaines phases de la pandémie ; il s’agira en effet d’éviter le surendettement des PME, de promouvoir une gamme diversifiée d’instruments de financement, de stimuler la création d’entreprises et de renforcer la résilience des PME par des mesures structurelles.

Under Action 14, countries have committed to implement a minimum standard to strengthen the effectiveness and efficiency of the mutual agreement procedure (MAP). The MAP is included in Article 25 of the OECD Model Tax Convention and commits countries to endeavour to resolve disputes related to the interpretation and application of tax treaties. The Action 14 Minimum Standard has been translated into specific terms of reference and a methodology for the peer review and monitoring process. The minimum standard is complemented by a set of best practices. The peer review process is conducted in two stages. Stage 1 assesses countries against the terms of reference of the minimum standard according to an agreed schedule of review. Stage 2 focuses on monitoring the follow-up of any recommendations resulting from jurisdictions' Stage 1 peer review report. This report reflects the outcome of the Stage 2 peer monitoring of the implementation of the Action 14 Minimum Standard by Korea.