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PRODUCTIVITY

Productivity Research

Productivity Survey and Research

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Productivity is a solid foundation that leads society toward a better direction. It is the base of national policy, motivates industry growth, and transforms the level of corporate management. To make a better country, KPC continues to study productivity. KPC is working as a think tank to improve national productivity with creative research on productivity

Productivity Survey and Research

KPC analyzes the productivity status at the national, industrial, and corporate levels and studies social and economic phenomena that affect productivity such as employment, aging, R&D, and capital investment.

  • Effect of productivity change on international competitiveness
  • Impact of unemployment on labor productivity
  • Trend comparison of Korea, US and Japan of Green Productivity
  • Impact of company’s dynamics on employment, output and labor productivity
  • Impact of Population Aging on Economic Growth and Labor Productivity
  • Measurement of the ripple effects of manufacturing industry’s labor productivity by business type
  • Productivity improvement plan for lifeFriendly service industry
  • Productivity partnership project between large companies and SMEs
  • Motivating plan for SMEs’productivity innovation

Productivity Statistics

KPC produces and releases six productivity statistics annually in order to accurately recognize the productivity status of Korea. KPC publishes not only the labor productivity index that is the nationally approved statistic and the added value analysis statistics of listed companies, but labor productivity statistics including analysis of labor productivity by industry size and business type and international comparison of labor productivity as well. Also KPC provides total factor productivity statistics such as international comparison of total factor productivity and analyses of total factor productivity by company size and region.

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Labor productivity index

The Labor Productivity Index is a statistic that quarterly measures and reports the labor productivity index of whole economy and industries in Korea. The labor productivity index can be divided into the labor productivity index using the industrial production index and the value added labor productivity index using the added value of the national accounts. Statistics on the industry corresponding to the major classification and the middle classification of the standard industry classification are offered. The quarterly labor productivity indices are published and distributed in the Korea Statistics Portal of the National Statistical Office, e-Nara Index, the Bank of Korea’s Economic Statistics System, and the Productivity Statistics Database of KPC.

Value Added Analysis of Listed Companies

Value added analysis of listed companies is the nationally approved statistics (No. 344002) which is annually published by analyzing the added value creation, distribution status, and management performance of listed companies (KOSPI and KOSDAQ) in Korea. As this statistic, which is produced using financial data of Korean representative companies, can be used not only for identifying the overall performance of the domestic industry but also as a benchmarking data of competitors for each company, this statistic data is a useful base for establishing and implementing a productivity innovation strategy.

Labor Productivity Analysis of Manufacturing Industry
by Business type and Company Size

Labor productivity analysis of manufacturing industry by business type and company size is a statistic that is released annually by measuring the labor productivity by the size of company (business) in the subdivided sector of the manufacturing industry according to the standard industry classification. The gap in labor productivity between large companies and SMEs, which can be identified through this study, is being used as important data for SME-related policy studies. Specifically, KPC provides data of OECD member countries for people to refer to and compare, which allows them to identify the productivity gap between larger companies and SMEs that is significantly larger than that in major developed countries.

International Comparison of Labor Productivity

The international comparative study on labor productivity is annually conducted to compare and analyze the labor productivity by country and industry among OECE member countries (35 countries in 2017) including Korea; to identify the productivity of Korea; and to suggest directions for productivity improvement. Information of GDP, the number of employees, and the total working hours collected from OECD statistics is used as basic data, and as for the conversion rate of added value for international comparison, the results of applying the purchasing power parity index (PPP) are presented as key statistics.

International Analysis of Total Factor Productivity

The international comparative study of total factor productivity compares and analyzes the total factor productivity by country and industry that is derived from the basic databases of whole economy and industries based on the KLEMS methodology. In the KLEMS methodology, input factors to measure total factor productivity are classified into capital (K), labor (L), energy (E), raw materials (M), and service (S). In this study, KPC measures the total factor productivity of 10 European countries (using EU KLEMS data) and analyze and present the trends annually.

Total Productivity Analysis of Manufacturing Industry
by sub industry, Company Size, and Region

The total factor productivity analysis of manufacturing industry by sub industry is carried out annually by adding the analyses by company size or region, and KPC produces and publish the total factor productivity statistics of manufacturing industry sub-classified industry by the standard industry category. Using the <Mining and Manufacturing Survey> and <Economy Census> of the National Statistical Office, and the <National Accounts> of the Bank of Korea, KPC provides the total factor productivity trend of the manufacturing industry by business type, that of large companies and SMEs by each business type, and that of Korea’s 16 cities and provinces or regions classified ascapital area, Chungcheong area, Honam area, Gyeongbuk area, Gyeongnam area, and Gangwon area.

National Productivity Award

KPC, together with the Ministry of Trade, Industry and Energy, runs the National Productivity Award annually, the only productivity-related award in Korea, which means that it finds and reward excellent companies and meritorious individuals who have contributed to the nation’s economic development through productivity improvement at industrial sites. The National Productivity Award was launched in 1962 as the first private productivityrelated award in Korea. It was promoted to the government award in 1987 and has awarded over 900 government prizes until now.

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The award winners of the National Productivity Award can benchmark the international management system model, get free evaluation criteria researched and developed by KPC for many years and introduce the advanced management innovation tool through the evaluation result report and the PMS linkage program. Moreover, understanding and applying evaluation standards of accomplishment letters allows companies to form a common consensus for corporate growth and reinforce the capability to innovate continuously.

Award-winning Company Case

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    Shinhan Financial Group Co., Ltd.
    (’16 Gold Tower Order of Industrial Service Merit)

    Shinhan Financial Group has realized the best productivity and sustainability in Korea by practicing the ‘Warm Finance Sharing the Future with You.’ Shinhan achieved the highest productivity in financial field, including the industry’s number one net profit for 8 straight years and the number one productivity per person. Furthermore, Shinhan ranked 18th among the top 100 domestic companies in ‘Global 100 Companies of Sustainable Management’ announced at the Davos Forum in 2016, and Shinhan Bank gained outstanding results both in customer and external evaluations such as number one ranking in all five domestic customer satisfaction surveys for 2 straight years. Shinhan adopted ‘Smart Worktime’ including telecommuting and flexible working hours for the first time in the financial industry to support work-family balance. And in 2015, it launched a Start-up Program to foster and support FinTech companies, leading the Fourth Industrial Revolution by providing legal, patent, management consulting services to 33 companies and directly investing KRW 1.73 billion.

International Cooperation

KPC is carrying out various exchange and cooperation activities of productivity with the APO member countries including the training project through APO. The invitation training program, which is a general type, invites participants from all APO member countries and shares Korea’s best practices in various fields such as SME innovation, productivity, quality, and management.

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Major Achievements

  • Operating 20-30 APO programs per year
  • Exchanging over 200 human resources per year

Major Program

Field Subject Location
productivity Productivity measurement training Japan
Conference on Productivity Analysis and Policy Sri Lanka
Growth Education Policy of National Productivity Improvement United States of America
SME Workshop for SMEs’ Integrated Productivity Management Taiwan
SME Development Research Team Iran
Conference on SMEs’ ICT Innovation India
Innovation Innovation ecosystem inspection team United Kingdom
Innovation leadership at Public sectors Taiwan
International Conference on 4th Industrial Revolution Japan
Agriculture Asia Smart Agriculture Forum Taiwan
Future food research team United States of America
Workshop on low temperature distribution management of agricultural products Fiji