Korea needs to reform gov't, education sectors: McKinsey consultant

South Korea should reform its government and education sectors to remove uneasy business regulations and foster high quality talent in preparing for demographic shifts in the world, a global business consultant said Thursday.

"If I argue, (the biggest head wind that South Korea faces is) regulation for stickiness," Dominic Barton, global managing director of McKinsey & Co., said in a breakfast meeting in Seoul.

"There are lots of traditions that need to be challenged, about hierarchy, about the government."

He took the example of South Korea's prosecution, which he claimed had contributed to the country's growth in the past by sweeping away any corruption and irregularities but has become a force that makes business players feel scared of change and innovation.

He also called for education reform in South Korea as fostering future skilled workers is the most important thing in leading a global trend as the world's population is getting older.

"I think we need a dramatic change in how we educate," said Barton. "How you do the education, what you educate people on. It needs to be modernized."

The South Korean government is recently pushing for labor and education reform in a bid to make the labor market flexible in the time of aging societies.

Barton also agreed with the urgency of demographic issues as a declining workforce will undermine productivity in the business field.

"The biggest headwind I think is demographics, which is going to be a big factor," he said, adding that the average age of each industrial sector is rising and machines will replace vacancies left by retiring workers.

Still, South Korea has strong tailwinds to become a leading country in the world, especially in the information technology industry, he said.

"Korean consumers love technology; they lead the power of usage," he said. "They are the biggest driver in changes of consumers. They are not only individual consumers but business consumers." (Yonhap)