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Ko, Hye Won (KRIVET)
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2000s
1990s
1980s
1960~70s
• Recovery from the recession caused by
the recent global financial crisis
• Knowledge-based economy
• Introduction of a more advanced system of
managing the economy
• Technology-intensive economy
• Promotion of heavy chemical industry-leading to creation
of middle class and high social mobility
• Expansion of the public welfare system
• Capital-intensive economy
• Strong support for exporting companies
• Labor-intensive light industry economy (supply of skilled workers
through institutionalization of vocational education system)
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• Since 1952, Korea’s GDP multiplied by 33 times reaching approximately 833 billion
US dollars in 2009
• Economy had grown steadily by above 8% until the recent Financial Crisis
• Unemployment peaked in the early 1980s and has since declined
• Contribution of agriculture and fisheries to employment fell from 50.4% in 1970 to
6.6% in 2010. In contrast, employment in the service industry surged from 35% in
1970 to 76.4% in 2010.
• Total employed population grew approximately 2.4-fold in the same period
Trends in Employment
Breakdown by Industry
Economic growth rate and
Unemployment rate (%)
12.0
10.4
5.2
10.0
8.0
9.3
4.6
8.8
100%
5.0
80%
4.0
60%
3.0
40%
2.0
20%
4.0
-1.9
0.2
0.0
1.0
-2.0
1980
1990
2000
25,000
20,000
13,683
15,000
9,617
10,000
5,000
0%
0
1970
1980
1990
2000
2010
2009
-4.0
0.0
Economic
Growth Rate
23,829
21,156
18,085
3.7
6.0
1970
30,000
4.4
4.5
2.0
6.0
Unemployment
rate
SOC & Other Services
Mining & Manufacturing
Agriculture, Forestry, Fisheries
Total number of employees
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• State-driven growth strategy for economic and social development
• Focus on fostering a few selected industries and state-led skills development
• From elitist to universal higher education
Phase 1
1960~75
Phase 2
1976~96
Phase 3
1997 and
onwards
- Unlimited supply of workers
- Labor-intensive industries
- Demand for low-skilled workers
College Enrollment Rate
- Emerging worker shortage
- Full-fledged economic development
focusing on heavy chemical industries
- Emphasis on quality of labor force
- Rise in unemployment since the
financial crisis
- Change of growth paradigm:
quantitative expansion to qualitative
deepening
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• Export-led growth strategy based on low-wage labor
• Main role of VT: training simple-skilled workers to support Five-Year Plans
Five-Year Plan
Development Strategies and
Environment
Skills
Development Strategy
1st
1962~1966
• Building the foundation for industrialization
• Unbalanced growth
• Export-driven growth led by light industry
• High unemployment rate
• Lack of infrastructure and VET teachers
for training workers
• Initial training for low-skilled workers
• Industrial Education Promotion Act
2nd
1967~1972
• Building the foundation for industrialization
• Unbalanced growth
• Export-led growth
• High unemployment rate
• Underdevelopment of rural regions
• Vocational Training Act
• Five-year Science and Technology
Promotion Plan
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Five-Year Plan
3rd
1972~1976
4th
1977~1981
Development Strategies and
Environment
• Improvement of the industrial
structure
• Growing dependence on imports
• Inflation, worsening balance of
payments and economic recession
• Promotion of technology-intensive
industries
• Export-oriented growth
• Balanced growth between rural
and urban areas
• Shortage of workers skilled in
advanced technologies
• Rise in wage of technical workers
Skills
Development Strategy
• Amendment of Industrial Education
Promotion Act
• National Technical Qualification Act
• Specialization of technical high schools
• Introduction of vocational programs in
general high school curriculum
• Establishment of Air & Correspondence
High School
• Initial training for low-skilled workers and
measures to promote employment stability
• Establishment of schools affiliated with
companies
• Admission quota raised for engineering
departments in junior colleges
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• Past development strategy based on massive inputs of workforce became
ineffective due to rising income, wider penetration of higher education, and
emergence of China.
• Economic boom led by the ‘three lows’ (low interest rate, low oil price and low
exchange rate) and growing demand for workforce in the manufacturing industry
led to dramatic rise in wage levels.
• Graduation quota system introduced in 1980 led to quantitative expansion of
school education.
• Supply-oriented policies were needed to respond to increasing demand for
highly-educated talents following the economic development
Five-Year Plan
Development Strategies and
Environment
Skills
Development Strategy
5th
1982~1986
• Establishment of economic stability
• Fostering knowledge and information
industries
• Demand for democracy and social welfare
• Needs for transiting to a private sectordriven economy
• Plans for strengthening VT
• Plans for reinforcing vocational high
schools
• Long-term plans for advances in science
and technology
• Establishment of open universities
6th
1987~1991
• Deepening of industrial structure
• Opening and globalization
• Democratic and labor movements
• Decline of export competitiveness due to
appreciation of Korean Won
• Basic Plan for Promoting Vocational
Training
• Reform of high school VET system
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• Labor shortage in 3D(hard, dangerous, dirty) industries
• Structural change of labor market in youth unemployment, layoffs, and
prevalence of irregular workers since Asian financial crisis in 1997
• Decrease of Korea’s overseas market share due to China’s export-oriented
economic development
• Four main directions of the educational reform in 1995: greater openness,
stronger moral and values education, IT education, and globalization
Plan
Development Strategies and
Environment
7th
1993~1997
• Transition to low-cost efficiency economy
• Relocation of production base
manufacturing industries leaving Korea
• Launch of WTO and globalization
• Asian financial crisis
• Rising education levels of individuals,
• Labor supply and demand mismatch
• Growing youth unemployment
Skills
Development Strategy
• Employment Insurance Act (vocational
competency development programs)
• Act on the Promotion of Worker
Participation in Vocational Training
• Approval for outsourcing employee
training to junior colleges
• Granting junior college degrees to junior
college graduates
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• Achievement of high growth rate and economic recovery in early 2000
• Focus on nurturing global and creative talents
• Introduction of HRD Act in 2001
• Launch of Brain Korea 21 project to enhance education information disclosure
system and competitiveness of higher education institutions and regional
universities
Plan
Development Strategies and
Environment
Skills
Development Strategy
Kim, Dae-Jung
Government
1998~2002
• Recovery from Asian financial crisis
• Parallel development of democracy
and market economy
• Balanced growth
• SME VT consortium
• Reform of vocational high school system
• Comprehensive plan for junior college
development
Roh, Moo-Hyun
Government
2003~2007
• A mature democracy
• Balanced development based on the
idea of co-existence
• Peace and prosperity in Northeast
Asia
• Act on the Vocational Competency
Development of Workers
• First Basic Plan for Lifelong Competency
Development
• Sector HRD Councils
• VE System Innovation Plan
Lee, Myung-Bak
Government
2008~present
• Low carbon emission for green growth
• Moderate practical policies toward
populace
• Stronger public education to become
the global talent power
• VET account system(Voucher)
• National training for strategic and
backbone industries
• High School Diversity 300 Project
• Korean-styled Meister Schools policies
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Shift in Workforce Structure caused by Technological Advances and
Industrial Evolution
1960s~70s
Post-graduates
& Undergraduates
Junior College
Graduates
1980s
1990s
2000s
Engineer
Engineer
(high-lvl)
Engineer
(high-lv.)
Engineer
Engineer
(mid-lvl)
Technician
Engineer
(mid-lv.)
Technician
Technician
Vocational
High school
Graduates
Low skilled
worker
Low skilled
worker
Core Workforce
Single-skilled
worker
Main Industry
Level of Technology
Technician
2010
Engineer with
management
capabilities
Engineering
Technologist with
management
capabilities
Engineering
Technician
Low skilled
worker
Low skilled
worker
Low skilled
worker
Multi-skilled
worker
Technician
Mid-level
engineer
Manager/High
Skilled Worker
Laborintensive
Capitalintensive
Techintensive
Knowledgebased
Industry
Convergence
Tech
adoption
Tech
improvement
Tech
development
Tech
innovation
Convergence of
Knowledge and
Technology
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• Formal school education
: primary schools - junior high schools - high schools - universities
• Technical and Vocational Education and training (TVET)
VE: vocational high schools, junior colleges(including polytechnics)
VT: public and private training providers, in-house training centers
Paradigm Shift in TVET
Economic Growth
(1970~1996)
Post-Asian Financial Crisis
(1997~1999)
Low Economic Growth
(2000~ )
Focus
Initial training
Re-training
Upgrade training
Target group
School graduates
Unemployed
Employed
Key training
providers
Schools, training centers
Diverse training providers
Diverse training
providers
Areas
covered
Simple skills
Specially designed for
specific companies or
industries
Convergence of
information and skills
Services
delivered to
trainees
Vocational training
Vocational training,
employment search
Career development
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Key Changes in Vocational Education in Korea
Labor-intensive
Industries
(1960~mid 1970s)
Capital-intensive
Industries
(mid 1970s~mid 1990s)
Knowledge-based
Industries
(mid 1990s~)
HR in
Demand
Low-skilled workers
Technicians
Engineers and
scientists
Level of
Vocational
Education
High school level
Junior college level
University level
Related
Policies
Expansion of
secondary education
(emphasis on
vocational training)
Expansion of junior
colleges and colleges
sector
Strengthening of
school-industry
research
collaboration
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Challenges:
 Disparity between industries and VET institutions
 Inadequate consideration of the learner’s aptitudes and
choice
For Improvement:
 Establishment of linkages between school and labor market
 Incentives for youth in the vocational track of education
 Effective integration of theory-based curriculum and
practical training
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An abundant, appropriately-skilled workforce has been a major factor in
the rapid development of the Korean economy. The availability of the
right workers to support industrialization and economic diversification is
the product of the sustained success of Korea’s skills development
efforts.
First, the link between skills development and Korea’s economic agenda
has received consistent, institutionalized emphasis and attention from
the very top levels of government. Indeed, skills development has been
integrated into Korea’s economic development strategy since the
elaboration of the first Five Year Economic Development Plan in 1962
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Second, Korea’s skills development system has adapted to respond to
each stage of economic development, enabling it to satisfy the skills
demands of the labor market while also improving the quality of the
skills of the workforce. As the economy developed, the government
shifted its focus from basic training in skills needed by the manufacturing
sector to providing both basic and advanced training in a much broader
range of skills. Also, as the economy developed, the emphasis of skills
development shifted from the training of new recruits to in-service
training and upgrading of existing skills.
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Third, the government made funding for vocational education and
training providers conditional on meeting system-wide standards for
programs, facilities, and instructors. This top-down approach has allowed
the government to adjust the system to meet evolving economic
development needs and emerging economy-wide skills constraints. The
homogeneity that this system of national standards created also
simplified monitoring of institutional performance and created a simple,
open system.
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Fourth, early identification of the skills demands of industry and
addressing these demands through appropriate policy is essential for a
successful skills development system. During the early stage of
industrialization which focused on heavy and chemical industries, Korea
instituted manpower planning, whereby the government estimated the
required number of skilled workers needed by priority industries and
took steps to calibrate the training system accordingly. This approach has
evolved over time. The government no longer carries out detailed
manpower planning but now annually conducts the Workforce and
Training Demand Survey to measure skills mismatches at the regional
level.
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Fifth, the skills development system is an effective means to bring those
working in the informal sector, who are not protected by social safety
nets, and other vulnerable groups into the formal sector. The large-scale
training for the unemployed in response the Asian financial crisis helped
contribute to a rapid reduction in the unemployment rate after the crisis.
A large portion of the training for the unemployed in the wake of the
crisis was focused on the information and communication technology
(ICT) industries, which has helped facilitate Korea’s success in this sector.
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