Bank of Korea Gov. Rhee Chang-yong speaks during the opening ceremony of a research institute on population and talent issues at Yonsei University in Seoul, March 21. Yonhap

Bank of Korea (BOK) Gov. Rhee Chang-yong on Friday called for reforming Korea's college entrance system in order to nurture talents capable of leading innovations.

Rhee made the point during the opening ceremony of a research institute on population and talent issues at Yonsei University in Seoul.

"Leading technological innovation and nurturing talent with creative problem-solving abilities are crucial for Korea to become a first mover in the world. But the current exam-focused education system limits the opportunities for young people to demonstrate their creativity," Rhee said.

"The college entrance system should focus on fostering talent who are not afraid of challenges, and have diverse backgrounds and experiences, rather than raising students who are more inclined to follow their parents' instructions and conform to given demands," he added.

The governor also called for structural reforms with longer-term, fundamental solutions to address the low birth rate and various other demographic challenges, citing intense education competition, a tough job market and unstable housing market conditions for young people as major issues.

"If the fertility rate remains at 0.75, Korea will inevitably face prolonged negative economic growth after 2050, and our potential growth rate may approach zero percent by the late 2040s, down from the current 2 percent level," Rhee warned.

Following the ceremony, the Economic Research Institute under the BOK and Yonsei University's research institute signed a memorandum of understanding (MOU) to cooperate on demographic and talent-fostering issues, the BOK said. (Yonhap)