IMF Chief: South Korea needs service, labor market reforms( Xinhua) 19:58, December 05, 2013 SEOUL, Dec. 5 (Xinhua) -- International Monetary Fund (IMF) Managing DirectorChristine Lagarde said here Thursday that South Korea needs to enhance its economicdynamism through service and labor market reforms.
Speaking at a press conference, she said, "I am convinced ( South) Korea can enhance itseconomic dynamism by making its growth more broad-based and inclusive - lesssegmented and more welcoming of women - and making the services sector more dynamic,competitive and productive."
Lagarde noted that a good reform must include temporary workers who do not have thebenefit of ideal security, training, as well as young people and women, saying better childcare benefits and vocational trainings for young people are needed. "Deregulation in theservice industry should be taken place because it is much less productive than themanufacturing sector, which is parallel to none," she added.
With implementation of the right package of reforms, she said, South Korea could keepgrowth at 3.5 to 4 percent over the next decade in spite of population aging.
Lagarde said the fourth-largest economy in Asia is more resilient than it was five years agoat the start of the global financial crisis, as policymakers have used the time wisely to makesure banks have healthy capital buffers and lower short term external debt, whiledeploying macroprudential policies proactively to tame financial risks.
During her visit beginning Wednesday, Lagarde met South Korean President Park Geun-hye, Deputy Prime Minister and Finance Minister Hyun Oh-Seok and other senior officials.
Lagarde will then pay a two-day visit to Myanmar, wrapping up is her first tour to threeAsian countries since she took office. The first leg of the visit brought her to Cambodia
（Editor：GaoYinan、Zhang Qian） Related reading
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