Skills Development and Korea’s Experiences October, 2006 Korea University of Technology and...
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Transcript of Skills Development and Korea’s Experiences October, 2006 Korea University of Technology and...
Skills Development and
Korea’s Experiences
October, 2006
Korea University of Technology and Education
1. History of Vocational Training Policies in Korea
Economic Development Plans Started in 1962
Massive demand for skilled workers, but – Lack of funds available – Lack of vocational training facilities – Lack of training experts & experiences
Background
■ Beginning Stage in the 1960s and 1970s
Major Policies
Vocational training system established since 1967 – Training criteria determined to promote various programs Government-led training to provide skilled workers – Founding public vocational training institutions – Funding by ADB & IBRD loans Compulsory in-plant training adopted since 1976 – Training levies imposed on non-complying firms Institution to train instructors established in 1971
■ Beginning Stage in the 1960s and 1970s
Further Issues Technical difficulties in – Designing and operating training institutions – Supplying qualified instructors
Foreign technical assistance required to solve those difficulties in short period
– German technical assistance played an essential role
(also ILO, Belgium, Japan etc.)
■ Beginning Stage in the 1960s and 1970s
Changes in industrial structure: – Labor-intensive → technology-intensive – Mass production → flexible production
Increasing students in higher education, decreasing trainees
Increasing need for upgrading training levels
Background
■ Growth in the 1980s
Major Policies
Focus shifted from simple-skilled to multi-skilled – Longer training periods – Upgrading & refresher training emphasized – Training for white collar workers & supervisors
Integration of training criteria & skill test criteria
Financial subsidies increased to activate non- government training
■ Growth in the 1980s
Further Issues
How to improve efficiency of training facilities to better meet industrial demand?
– Policy emphasis changed from quantity to quality – Adjustment of training criteria & testing criteria to
the industrial needs – Integration of public training institutions
■ Growth in the 1980s
Focus of training to be changed, to enhance competitiveness of firms
– Initial training → upgrade training for employed – Public training → in-plant training – Target : manufacture workers → all workers
Financial crisis : 1998-2000
Background
■ Transition period in the 1990s
In-plant training system incorporated into Skills Development Program under Employment Insurance System in 1995
– Compulsory training → EI contributions / subsidies – Extended to all workers, all industries to cover
lifelong skills development Safety net for unemployed – Unemployment measures based on training for unemployed
Founded Korea University of Technology and Education in 1992 for upgrading of instructors & HRD experts
Major Policies
■ Transition period in the 1990s
Background
Growth of IT, BT, etc. Lifelong workplace → lifelong occupation Polarization of labor market; more
opportunities for skilled workers, less opportunities for disadvantaged
■ Innovation in the 2000s
Major Policies Closer link among business, school, research
& government in R&D, skills development programs
– Universities’ growing roles in providing industry needs-oriented manpower & skills development programs
Continuous skills development across working life
– Organized learning at workplace – Worker’s voluntary skills development – University–industry cooperation programs increasing at national and regional levels Special programs to improve skills of
disadvantaged
■ Innovation in the 2000s
Companies with 300 employees or more (1976)
→ companies with 150 or more (1992) Non-compliers to pay training levies Funds from the levies used for training expenditure
– Trainees : 2,180,000 (’76 ~ ’98)
2. Financing of Skills Development■ Compulsory Vocational Training (1976-1998)
3 programs in EI financed by EI fund – Unemployment benefits, job security & skills development Skills development program : – Contributions : 0.25% ~ 0.85% of total wage, depending on company size Support for employers & employees by
EI fund – Trainees : 2,460,000 (’06)
■ EI Skills Development (1995~)
Timely supply of workforce for each phase of industrial development
(light → heavy/chemical → high-tech industry)
Abundant quality workforce as a driving force behind the rapid economic growth
3. Implications
Driving Economic Growth
Policy responsive to changes in industrial structure
– Basic training in manufacturing → Basic & Upgrade training in overall industries
Private sector-led initiatives – Public training → Private & Voluntary training with
govt. support
Flexible Policy Responses
Large-scale training for the unemployed during the financial crisis
– Support for living & re-employment of the unemployed
Expanded training in IT sector facilitated transition to an information-based society
Tackling Mass Unemployment
One-stop services at PES (Job Center)
Closer link among unemployment benefits, job placement & skills development under EI system
Active Labor Market Policy