A senior economist at the Organization for Economic Cooperation and Development(OECD) has cited low labor productivity, stringent regulations and wage inequality as reasons South Korea’s economy is seeing limits in growth.
 
Randall Jones, head of the OECD's Japan and Korea Desk, made the assessment on Monday during a meeting organized by the Korea Economic Research Institute and the Korean Economic Association to mark the 20th anniversary of South Korea's entry into the Paris-based bloc.
 
Jones pointed to stringent regulations as an obstacle to economic growth, saying South Korea has the fourth highest product market regulation(PMR) indicators after Turkey, Israel and Mexico among the 35 OECD members.
 
Jones also cited South Korea’s low labor productivity which is only half that of the OECD’s top 17 countries.

As key tasks for South Korea to resolve to stimulate its economy, he cited low productivity of the service sector, long working hours and the aging of society which he said is the fastest among OECD states.
 
As a way to improve productivity, Jones proposed that South Korea further open up its market for foreign direct investment, reduce government guarantee for loans to small firms and promote venture capital investment.  
 
PMR indicators were devised by the OECD to enable countries to compare data on the status of product market regulations and market structures.