The Bank of Korea has released its joint research with Japan's Waseda University that compares the two countries' youth unemployment rate.
South Korea and Japan had a similar youth jobless rate of around six percent in 2000, but as of 2017, South Korea's youth unemployment rate had soared to nearly ten percent,... while Japan's fell to four percent.
Using data from 30 OECD countries between 2000 and 2017, the central bank said the aging population, huge wage gap between large Korean conglomerates and SMEs and slowing growth led to a sharp rise in youth unemployment in South Korea.
On the other hand, Japan's work training programs, economic recovery and creation of higher quality jobs helped to reduce the rate there.
The findings recommend introducing work training programs, lowering the wage gap between large conglomerates and SMEs in South Korea to help lower youth unemployment and reduce the job mismatch in the country.