AS SOUTH Korea heads towards deregulation in 2009, the race is on for the finance industry to find the most talented individuals who can increase the competitiveness and efficiency of their organisations. As a major financial hub of north-east Asia and the third-largest economy in the whole of Asia, the lack of experienced financial experts has become one of the biggest business challenges. Demand for talented personnel in South Korea is exceeding supply several times over.
As a short-term solution to the problem, finance companies have been buying in talent from outside, mainly from the West. Although this can speed up the talent process, it can be at a high cost to their business. To attract talented foreigners or, indeed, Koreans who have trained abroad and gained a taste for the lifestyle and wages offered by the West, businesses are being forced to offer similar salaries.
This short-term focus was initiated by the currency crisis in 2000, where companies became far more ‘economic’ with their long-term investment in employees and, instead, employed those with the necessary skills from outside the company.
Lee Sang-jin, an executive at Shinyoung Investment Management, said on FT.com: “The asset management industry has grown so rapidly over the past four years that experienced managers are in short supply.” He adds that, “The problem will last for the next three to five years and there is no quick fix. Financial companies should pay more attention to developing their own professionals with a longerterm vision.”
