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Government squeezes more jobs out of the financial sector

Government squeezes more jobs out of the financial sector

Posted June. 07, 2019 07:32,   

Updated June. 07, 2019 07:32


Controversy has been stirred by news that the Financial Services Commission decided to announce score cards of financial businesses on their contribution to job creation. Opponents argue that pushing them to hire more employees runs against the status quo where the wider use of online or mobile financial transactions requires the financial field to improve the employment structure by reducing employees on the payroll. In particular, they point out the irony that financial authorities call for more jobs in a similar way that boosts employment in the public sector while emphasizing soundness and efficiency.

August will see the announcement of eval‎uations on job creation by commercial and regional banks according to the FSC’s Thursday press release. The financial agency plans to expand the range of those subject to eval‎uation to include other types of financial agents. It said that the role of the financial sector has to be strengthened to help reach the job-centered economy in government policy, adding that financial jobs are preferred by young job seekers due to quality working conditions and high pays. The FSC intends to keep a close eye on how well employment is maintained amid the fast-changing financial industry with new technology at play.

The FSC will share the results of eval‎uations on job creation for commercial and regional banks and announce good examples for each sector in collaboration with the Financial Supervisory Service, the Korea Institute of Finance and the Korea Labor Institute. Given that it may be hard to compare each bank uniformly, they plan to announce the overall score of the banking sector.

Meanwhile, the FSC has come under criticism for holding back financial innovation, not encouraging the streamline of corporate management. Critics maintain that a forcible increase in financial jobs will rather lower labor productivity at a time when non face-to-face transactions increase to reduce demand in the labor force due to AI and other new technologies.

As a solution, the government should attempt to lessen regulation to increase jobs in new industries, rather than forcing the financial sector on quantitative job growth. University of Seoul Professor Yoon Chang-hyun assessed that growing new industries and relieving regulation will automatically lead to greater job creation, adding that pushing for job creation is likened to putting the cart before the horse.

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