79924 Republic of Korea SABER Multiyear Country Report WORKFORCE DEVELOPMENT 2013 Status Strategic Framework Strategic Framework was assessed at the established level for 1970 and 1990 and reached an advanced level by 2010. These results reflect active 2010 apex-level leadership on the part of the government that consistently maintained a close alignment between Korea’s economic development 1990 priorities and workforce development (WfD) policy; the integration of robust surveys of skills demand and supply into the policymaking process; and the clear delineation of legal roles and responsibilities for government and non- 1970 government stakeholders involved in setting strategy for WfD. System Oversight System Oversight was assessed at the emerging level in 1970, progressed to an established level by 1990 and reached an advanced level in 2010. 2010 These results reflect strong oversight of the WfD system through the consistent enforcement of appropriate accreditations standards for all providers receiving public funding; a credible and comprehensive system of skills testing and certification; and an education system that creates multiple 1990 pathways in and out of vocational education at both the secondary and post-secondary levels. The system has steadily improved with respect to facilitating lifelong learning and using criteria for allocating WfD funds to both incentivize efficiency in resource use and ensure alignment of WfD 1970 with economic development priorities. Service Delivery Service Delivery was assessed at the emerging level in 1970 and 1990 and progressed to an established level in 2010. These results reflect the finding 2010 that Korea has taken numerous measures to foster links among individual training providers, research institutes and industry; to encourage diversity in training provision by supporting private providers and companies that train 1990 workers; and to make extensive use of data collection and analysis to both identify strengths and weaknesses in service delivery and, especially in the 1970 past two decades, incentivize provider performance. THE WORLD BANK Table of Contents Executive Summary ……………………………………………………………………………………………………………….. 3 Introduction …………………………………………………………………………………………………………………………………….. 5 Country Context ………………………………………………………………………………………………………………………………. 7 Overview of Benchmarking Results ………………………………………………………………………………………………….. 14 Detailed Results | Dimension 1 ……………………………………………………………………………………………............. 18 Policy Goal 1 | Articulating a Strategic Direction for WfD ……………………………………………………………. 19 Policy Goal 2 | Prioritizing a Demand-led Approach ………………………………………………….................... 23 Policy Goal 3 | Strengthening Critical Coordination …………………………………………………………............ 26 Detailed Results | Dimension 2 ………………………………………………………………………………………………………… 29 Policy Goal 4 | Diversifying Pathways for Skills Acquisition …………………………………………………………. 30 Policy Goal 5 | Ensuring Efficiency and Equity in Funding ……………………………………………………………. 34 Policy Goal 6 | Assuring Relevant and Reliable Standards …………………………………………………………… 37 Detailed Results | Dimension 3 ………………………………………………………………………………………………………… 40 Policy Goal 7 | Fostering Relevance in Training Programs …………………………………………………………… 41 Policy Goal 8 | Incentivizing Excellence in Training Provision ……………………………………………………… 45 Policy Goal 9 | Enhancing Accountability for Results .…………………………………………………………………. 47 Annex 1 | Analytical Framework of SABER-WfD ………………………………………………………………………………. 50 Annex 2 | Benchmarking Scores ………………………………………………………………………………………………………. 51 Annex 3 | Acronyms…………………………………………………………………………………………………………………………. 52 Annex 4 | Documents ………………………………………………………………………………………………………………………. 53 Annex 5 | Informants ………………………………………………………………………………………………………………………. 56 Annex 6 | Benchmarking Rubrics ………………………………………..…………………………………………………………… 57 Authorship and Acknowledgements ………………………………………………………………………………………………… 66 SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 2 Executive Summary Skills as a key element of rapid economic development in the Republic of Korea The Korean economy has enjoyed sustained rapid growth since the 1960s. Over the past few decades the dominance of state-led economic planning has given way to greater reliance on market forces to drive economic growth and diversification. Workforce development has “The Korean received close attention during this entire period, providing employers with the skills government necessary to support Korea’s transformation from being one of the poorest countries in the recognized very world in the 1960s to its status today as a developed country with an advanced, knowledge- early on the based economy. The demand for skills has been consistently met through coordinated action importance of within government and collaboration with industry, research institutions and other WfD for economic stakeholders. This report highlights the reforms taken between 1970 and 2010 that have development. By made WfD a key part of Korea’s economic growth strategy over the past four decades. the 1960s, the country’s Methodology The study benchmarked policies and institutions for workforce development (WfD) in Korea President was and identified measures that helped strengthen the system. It relied on a new diagnostic tool convening weekly (SABER-WfD 1) and a wide range of primary and secondary evidence to make the assessment, meetings with focusing on the three Functional Dimensions of WfD polices and institutions identified in the ministers to SABER-WfD tool: strategic framework; system oversight; and service delivery. By discuss WfD documenting the status of these policies and institutions in 1970, 1990 and 2010 the study strategy, a tracked the progressive development of the Korean WfD system over a 40 year period during practice that has which the economy grew rapidly. WfD institutions, policies and practices related to the first continued to the Dimension, already strong in 1970, became stronger in subsequent decades, while significant present day.� and steady gains were achieved in the other two Dimensions as well, especially after 1990. Key reform elements at the strategy level The Korean government recognized very early on the importance of WfD for economic development. By the 1960s, the country’s President was convening weekly meetings with ministers to discuss WfD strategy, a practice that has continued to the present day. Over this period, leaders passed key reforms to institutionalize the roles of government and non-government leaders in setting and implementing WfD strategies. One example is the creation of the Vocational Training Review Committee in 1967 to facilitate stakeholders’ implementation of reforms. From 1961 to 1995, Korea’s powerful central planning agency, the Economic Planning Board, played a critical role in setting economic development strategy and coordinating the actions of government ministries and agencies, including actions related to WfD. From the 1970s, strategy making has benefited from the availability of robust information on labor market conditions generated by government research institutions such as the Korea Education Development Institute (created in 1972), the Korea Employment Information Service (created in 1979) and Korea Research Institute for Vocational Education and Training (created in 1997), institutions that were established to provide information and analysis to inform the development of economic and WfD initiatives. In recent years, the strategic focus of the system has benefited from the creation of the Human Resource Development Forum and Regional Human Resource Development Committees, which gave non-government leaders a regular, institutionalized role in reviewing WfD policy and discussing its implications. Reforms to improve the oversight of the education and training system Institutions and policies for oversight and governance of the WfD system developed steadily over time. Stringent standards for facilities and curriculum combined with robust employer participation in governing and funding the system have created effective incentives for high quality industry-relevant training provision by both public and private providers. The National Education Curriculum, first defined in 1963 and most recently revised in 2009, sets system-wide standards for curricula, facilities and equipment used in vocational education. Korea’s Vocational Training Standards, first issued in 1976 by the Ministry of Labor, perform a similar function for continuing vocational training. Early reforms included the passage of the National Technical Qualifications Act in 1973 and the introduction of a training levy system in 1976. More recent reforms include steps to increase information about job opportunities in the form of the CareerNet and WorkNet websites; the introduction of the Academic Credit Bank in 1997 and the Individual Training Account system in 2008 to encourage lifelong learning; the transformation of the training levy 1 The tool is part of the World Bank’s initiative on Systems Assessment for Better Education Results (SABER). It includes several policy domains, among them WfD. More information on all SABER domains may be found at: http://www.worldbank.org/education/saber. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 3 into a system of training grants financed by a payroll tax and its integration in 1995 into the Employment Insurance System; the development of National Competency Standards starting in 2002; and the use of performance-based allocation of funding to intensify the incentives for providers to offer job-relevant training services. Reforms to improve management of training institutions and programs The government actively oversees service delivery by both public and private providers. To ensure the relevance and quality of programs, it put heavy emphasis on fostering collaboration and linkages among technical vocational education and training (TVET) providers and employers. Such measures were institutionalized early in Korea’s development push, for example, in the form of the Department of Cooperation between Schools and Industry, which was created in 1973 to increase opportunities for workplace training for students; and through the Vocational Training Research Institute, which was created in 1981 to advise training providers on how to tailor programs and curricula to regional labor market demand. Recent initiatives to strengthen the role of firms in creating and governing training provision include: the formation of the Consortium for HRD Ability Magnified Program (CHAMP) in 2001 to enhance vocational training opportunities for working adults; and the creation of Meister High Schools in 2010 to offer high school graduates an attractive career pathway through vocational education. In addition, systemic measures to strengthen service delivery have been put in place, including: new procedures for awarding grants from the government-funded Job Skills Development Program that are designed to increase competition among training providers; the use of the Job Posting and Bidding System to hire the heads of training institutions on a competitive basis and to attract candidates with industry experience; and increased attention to monitoring institutional outcomes and performance. Reflections on lessons from the Republic of Korea The Korean experience is an example of an effective government-led model for WfD. The highest levels of government leaders have consistently asserted WfD’s importance as a “The government’s means to provide an appropriately skilled workforce for advancing strategic economic large investments development objectives. The government’s large investments in gathering robust and in gathering accurate data on current and future economic conditions and their skills implications have robust and been instrumental in aligning WfD to economic development goals. This has been achieved accurate data on both through the creation of numerous dedicated governmental and quasi-governmental current and future research institutions and think tanks as well as by maintaining strong formal and informal government links to industry. Also necessary is a collaborative approach to WfD. The economic government recognized industry, training providers and labor unions as essential partners conditions and in activities ranging from implementing strategic reforms, to system oversight, to their skills collaborating in ensuring that providers deliver desired outcomes. In the face of rapid implications have economic change and ambitious economic development targets, Korea has, for most of the been instrumental past several decades, relied on a centralized approach to governing the TVET system. All in aligning WfD to training providers operating in the country must complete a rigorous accreditation process economic and depend to varying degrees on government subsidies to finance their operations. The development government’s insistence on detailed spending plans and adherence to a national curriculum goals.� have given it considerable influence over TVET providers. In response to increasing economic diversification and the need for more flexibility from the WfD system, the government’s approach has evolved and it now relies increasingly on market competition and funding incentives for providers to achieve targets for WfD. In the coming years, Korea’s WfD system faces new challenges, among them the need to foster flexibility and creativity among workers, to manage the persistence of strong social preference for academic rather than vocational education, and to expand participation in lifelong learning as the population ages. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 4 Introduction The Republic of Korea vaulted in less than three incentives and information signals affecting the generations from being one of the poorest countries in choices of individuals, employers, training the world to becoming a member of the Organisation providers and other stakeholders; and for Economic Co-operation and Development (OECD). (3) Service Delivery, which refers to the diversity, This economic transformation has attracted organization and management of training considerable admiration and inquiry. One of the key provision, both state and non-state, that deliver factors for Korea’s success was the provision of skills to results on the ground by enabling individuals to support industrialization and economic diversification. acquire market- and job-relevant skills. (see This report takes advantage of a new World Bank Figure 1). diagnostic tool to examine the development of the From the perspective of the line ministries, typically Korean system for workforce development (WfD) from education and labor, strategy is about sensing, 1970 to 2010. The findings are intended to document influencing, and responding to the external good practices, lapses and key breakthroughs and environment for WfD; oversight is about governing the generate insights that can be used to enrich dialogue on activities of all stakeholders with a direct interest in WfD policy in the World Bank’s partner countries. WfD activities; and delivery is about managing the activities of those responsible for training provision. A New Diagnostic Tool The tool, known as SABER-WfD, is a product of the These three Dimensions constitute a closed policy- World Bank’s initiative on Systems Approach for Better making loop and, when taken together, allow for Education Results (SABER), which focuses on several analysis of the functioning of a WfD system as a whole. policy domains, including WfD. 2 SABER-WfD aims to Each Dimension is composed of Policy Goals (see Figure document and assess a country’s policies and 2) spanning three broad areas: governance, finance and institutions in light of global good practice. The tool is information. Each of the Policy Goals is in turn further based on an analytical framework 3 that identifies three defined by three tangible Policy Actions, making a total Functional Dimensions of WfD policies and institutions: of nine Policy Goals and 27 Policy Actions. (1) Strategic Framework, which refers to the praxis Figure 2: Analytical Framework of SABER-WfD of advocacy, partnership, and coordination in relation to the objective of aligning WfD in critical areas to priorities for national development; (2) System Oversight, which refers to the arrangements governing funding, quality assurance and learning pathways that shape the Figure 1: Functional Dimensions of WfD Policies Source: Tan et al. 2013. 2 For details on SABER see http://www.worldbank.org/education/saber Source: Tan et al. 2013. See Annex 1 for more details. 3 For an explanation of the SABER-WfD framework see Tan et al 2013. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 5 The SABER-WfD tool uses the foregoing analytical aggregation in the data; naturally, the composite scores framework to create a structured data collection are rarely whole numbers. instrument (DCI) for gathering information on a country’s policies and institutions for WfD. For each of Note that in order to conform to standardized the 27 Policy Actions, the DCI poses a set of questions presentation of reports under the overall SABER relating to the corresponding aspect of the WfD system. initiative the dimension-level SABER-WfD categorical Each question is answered by choosing from a list of ratings shown on the cover of this report are based on closed options corresponding to stages of development. the corresponding composite scores which have been The choice is substantiated either by documentary converted to the relevant categories. 5 In the rest of the evidence or by information supplied and corroborated report, the composite scores are presented in the form by knowledgeable and credible informants (see Box 1). of a dial, as shown in Figure 3, in order to retain the As in the other countries selected for this pilot phase, detail they reflect. the collection of data using the SABER-WfD instrument was led by Principal Investigators (PIs). 4 Box 1: A Note on Documentary Sources This report is based on data collected through a desk study Data Processing and Scoring. For each of the 27 Policy drawing on various documents for the years 1970 to 2010. Actions, the information gathered by the PIs is scored The most important of these are: according to standard rubrics. These rubrics  Statistical Yearbook of Education correspond to four stages of maturity in policy and  Statistical Yearbook of Employment and Labor institutional development for WfD: (1) latent, (2)  100 Years of History for Vocational Education and emerging, (3) established and (4) advanced. A Training in Korea by Lee Moo-Kuen summary description of the rubrics appears in Figure 3  The Changes and Tasks of Vocational Competencies while the details are explained in Annex 6. Development in Korea by Chung Taek-Soo  Study on the Establishment of a Development The scores on the Policy Actions form the basis for Cooperation Model of Korean Vocational Education scoring the nine Policy Goals. The approach involves and Training edited by Choi Young Real et al. the application of simple weights to aggregate the scores on the Policy Actions that relate to each Policy Complete information on all sources appears in Annexes 4 Goal, typically 1/3 for information relating to policy and 5. concepts and design and 2/3s for information relating to policy implementation. In the interest of parsimony in data collection, the SABER-WfD study accepts reviews and evaluations of policies and related follow- up actions as evidence of implementation. Finally, to obtain the scores for the three Functional Dimensions considered in the SABER-WfD framework, the scores for the Policy Goals that relate to each dimension are aggregated with equal weights. This algorithm yields composite scores on a 1-4 scale for every level of Figure 3: Rubric for Benchmarking WfD Emerging Established Some instances of Systemic good good practice practice Advanced Latent Systemic good Limited practice meeting Engagement global standards Source: Tan et al. 2013. 4 For Korea, the PIs were Ko, Hye-Won and Park, Yoon-Hee, who are 5 For a given composite score, X, the conversion to the categorical research fellows at the Korea Research Institute for Vocational rating shown on the cover is based on the following rule: 1.00 ≤ X ≤ Education and Training (KRIVET). 1.75 converts to “Latent�; 1.75 < X ≤ 2.50, to “Emerging;� 2.50 < X ≤ 3.25, to “Established;� and 3.25 < X ≤ 4.00, to “Advanced.� SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 6 Country Context The transformation of the Republic of Korea over the and has subsequently continued its upward trend, past five decades has often been described as an wiping out progress made during the previous two economic miracle. The country entered the 1960s as a decades. Poverty has also been on the rise 6: the poverty low-income, labor-surplus economy with scarce rate in urban areas is estimated at 14.4% in 2009, up resources; today, it enjoys one of the highest standards from 9% during the early 2000s. of living in the world and boasts globally competitive high-tech manufacturing and service industries. Figure 5: Income Gini Coefficient for Korea and Effective strategies for WfD played a crucial role in this Comparators, mid-2000s and most recent year transformation. To set the stage for documenting these strategies we highlight below key aspects of the country’s economic and social context and the OECD Total (34) institutional and financing arrangements for WfD. US Economic Trends Sweden Growth. Korea’s economy grew at an average rate of 6.6% p.a. from 1970 to 2010. During this period the Norway economy contracted twice, in 1980, due to political upheaval and again in 1998, in the wake of the Asian Korea financial crisis. The economy rebounded quickly in both instances, achieving growth rates of 6.2% in 1981 and Japan 9.5% in 1999. Sustained high rates of growth over many decades have resulted in a fourteen-fold increase Finland in Korea’s real per capita GDP between 1960 and 2010 (see Figure 4). Denmark Figure 4: Per Capita GDP, 1960 to 2010 (constant 2000 0 0.1 0.2 0.3 0.4 USD) mid-2000s latest year $18,000 Source: OECD Social Expenditure Statistics (database). $16,372 Note: The income Gini coefficient is a measure of the inequality of income distribution in an economy, where 0 corresponds to absolute equality and 1 indicates that all income goes to one person. Thus the higher the number, the more unequal the distribution of income. $11,347 $12,000 Demographics and Employment Demographics. Korea’s population, currently estimated at 48.6 million people, is aging rapidly. The fertility rate $6,895 has fallen sharply, from 5.0 births per woman in 1966, $6,000 to 1.6 in 1990, to only 1.1 in 2005; the latter rate is $3,358 significantly lower than the corresponding OECD $1,994 average of 1.7 and well below the replacement rate of $1,150 2.1. Mirroring the steep decline in fertility, the median age of the population has risen, from about 18 years in $0 1966, to 27 years in 1990, to 35 years in 2005. Koreans below the age of 20 now comprise less than a quarter of the population, compared with more than half in 1970 (see Figure 6). Source: World Development Indicators (database). Income Distribution. Current income inequality in Korea is on par with that in Japan, considerably lower than in the United States but higher than in most European economies (see Figure 5). Historically, 6 income inequality declined during the 1980s and 1990s. Poverty is here defined as the share of households whose inflation- However, it rose sharply after the Asian financial crisis adjusted income is less than half the median household income. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 7 Figure 6: Composition of Population by Age, 1970 to Figure 7: Composition of Workforce by Economic Sector, 2010 (%) 1970 to 2010, (%) 100% 80% 90% 80% 60% 70% 60% 40% 50% 40% 20% 30% 20% 10% 0% 1970 1980 1990 1998 2005 0% 1970 1980 1990 2000 2010 Agriculture, Forestry, Fishing 19 and under 20-29 Mining and Manufacturing 30-39 40-49 Service and Other 50-59 over 60 Source: Statistic Korea, Survey of Business Activities. Source: Statistics Korea, Population Census. sector jobs was 76.4% in 2010, up from 35.3% forty Employment. In 2010, an estimated 60.8% of Koreans years earlier (see Figure 7). Employment in the over 15 years of age were in the labor force and 58.6% primary sector dropped from 50.4% to 6.6% during the of them were employed. The unemployment rate was same period. With respect to the occupational thus only 3.4%, a rate lower than the corresponding structure of the workforce, the proportion of managers, OECD average. Low unemployment has been a feature professionals, and technicians more than quadrupled, of the Korean economy for decades, with from 4.8% in 1970 to 21.5% in 2010 (see Figure 8). unemployment seldom topping 4% since 1980. However, youth unemployment has been a persistent Figure 8: Composition of Workforce by Occupation, problem: joblessness among those aged 15-24 has 1970 to 2010 (%) averaged 9.2% between 1980 and 2009 (see Table 1). Unemployment has been a larger problem among male 60% youth than their female counterparts. 50% Demand for Skills Sector Growth. The Korean economy has undergone 40% considerable structural change, with implications for the demand for skills. The share of workers in service 30% Table 1: Youth and Total Unemployment, 1980 to 20% 2010 (%) Year Unemployment rate 10% Youth (15-24) Total 1980 11% 5% 0% 1985 10% 4% 1970 1980 1990 2000 2010 1990 7% 3% Management, Professionals, Technicians 1995 6% 2% Office and Administrative Staff 2000 11% 4% Sales and Service Workers 2005 10% 4% Agricultural Workers Other 2010 10% 4% Source: World Development Indicators (database). Source: Statistic Korea, Survey of Business Activities. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 8 Supply of Skills Figure 10: Educational Choices of Korean High School Skills Profile. In 1980, 51.3% of those in the labor force Students, 1990 to 2008 had not progressed beyond primary school. By 2010, this number had fallen to 10.9%, driven both by older 100% generations leaving the labor force and by the almost universal progression to high school among Korean 80% youths by 2000. The quality of the foundational skills acquired by those students entering high school is 60% excellent. Korean eighth graders, for example, have consistently obtained among the highest scores on the 40% OECD’s Programme for International Student Assessment (PISA) for mathematics, reading and 20% science (see Figure 9). The test was launched in 2000 in 29 countries and has been repeated thrice, with the 0% latest round taking place in 34 countries in 2009. 1990 1995 2000 2005 2008 Percentage share in vocational high schools Figure 9: Eighth Graders’ Mean PISA Math Scores for Percentage share in general high schools Korea and Selected OECD Countries, 2000 to 2009 Percentage of high school graduates continuing to tertiary education 560 Source: Ministry of Education, Science and Technology and Korean Educational Development Institute, Annual Education Statistics Report. 540 33.2% in 1990 to 79.0% in 2008. As a result, the 520 percentage of workers with a completed college education rose from 6.7% in 1980 to 38.9% in 2010. 500 This trend in progression to higher education is 480 especially noteworthy among students in vocational high schools (see Table 2). The Presidential 460 Commission for Education Reform (PCER) proposed 2000 2003 2006 2009 Korea, Rep. Finland Table 2: Destination of Graduates of Vocational Japan Denmark Institutions, 1970 to 2010 (%) Norway Sweden USA Source: OECD Educations Statistics (database). Vocational High Junior Colleges Schools Enrolment in vocational high schools grew in the early Further Employ- Further Employ- 1990s, thanks to the government policy to achieve a Education ment Education ment 50:50 balance between general and vocational tracks. 1970 10.1 67.1 23.5 37.4 It has fallen off in subsequent years, however, due to a 1975 6.7 45.1 20.3 40.3 confluence of factors including the decline of the 1980 11.4 51.1 - - school-aged population and the growing pursuit of 1985 13.3 51.8 - - academic tracks in preparation for higher education. In 1990 8.3 76.6 - - 2008 about 26% of high school students attended 1995 19.2 73.4 - - vocational schools (see Figure 10). 2000 42.0 51.4 - - 2005 67.6 27.7 - - Today, a large majority of high schools graduates tend 2010 71.1 19.2 3.6 55.6 to go on to tertiary education rather than enter the Source: Ministry of Education, Science and Technology and Korean labor market. By the 1990s social demand for higher Educational Development Institute, Annual Education Statistics education was high due to an increasing income gap Report Note: “Further Education� includes both junior colleges and between high school graduates and college graduates, universities for the vocational high schools column and universities for improved living standards, and shrinking family sizes the junior colleges column. These numbers do not sum to 100% as a result family planning. Accordingly, the share of because students fulfilling military service requirements and who are students progressing to tertiary education rose from unemployed are not represented here. No data are available for junior colleges from 1980 to 2005. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 9 the Second Educational Reform Program in 1996, 480,000 foreign workers had found jobs under the which included vocational education reform. The main system in 84,000 small firms. objective of this vocational education reform was to establish a “Lifelong Vocational Education System� in Training Provision order to realize a “Lifelong Learning Society.� The Skills training in Korea takes two main forms: (1) reform created options for vocational school graduates vocational education, delivered in secondary and and incumbent workers to acquire further education tertiary institutions and administered by the Ministry beyond high school; it also eased regulatory barriers to of Education, Science and Technology (MEST); and (2) establishing colleges. The impact of the reform was to vocational training, administered by Ministry of increase the number of vocational high school Employment and Labor (MOEL), which targets workers graduates who continue on to post-secondary outside of the education system and takes place education: nearly three quarters of them did in 2010, primarily in training centers. Polytechnic colleges, up from just 10% in 1970. Correspondingly, the share under the MOEL also offer some training services. of vocational high school graduates entering the labor force fell to just 19% in 2010. Vocational Education. Korea’s education system has a 6-3-3-4 structure, corresponding to six years of With the introduction of a lifelong vocational education primary education and three years each of lower- and system, junior college education was also expanded. upper-secondary education, followed by up to four Junior colleges offer 2- to 3-year post-secondary years of post-secondary education (see Figure 11). programs in a variety of subjects including, but not Vocational education begins at the upper-secondary limited to, vocational ones. Students who complete level, where it is primarily offered in dedicated junior college attain an associate degree. Graduates of vocational high schools; however, general high schools junior colleges tend to view their degree as a gateway also run some vocational courses. into the labor market as opposed as a step towards university education. According to data for 2010, 55.6% At the tertiary level, both junior colleges and of junior college graduates entered the labor market polytechnic colleges offer vocational education while only 3.6% enrolled in a 4-year university (see programs, with junior vocational colleges enrolling the Table 2). The remainder were continuing their search majority of students. As of 2010, Korea had 145 junior for employment, still in the process of applying for colleges across the country (see Table 3). further study or were completing military service Approximately 26% of students pursuing post- requirements. secondary education in Korea are enrolled in junior colleges. Of these students, 30.7% are enrolled in Mismatch between Demand and Supply In the wake of the Asian economic crisis of 1997-8, Figure 11: Structure of the Korean Education System, young people found it harder than ever before to make 2010 a smooth transition into the labor market. In the past decade, unemployment among young people has Elementary and Middle School consistently been more than twice the overall (9 years) unemployment rate. Privately- financed Tutoring Despite high unemployment among young people, small- and medium-scale enterprises (SMEs) continue General Vocational High to complain of labor shortages. The problem is High School School especially serious among SMEs in sectors with a (3 years) (3 years) traditional concentration of so-called “3D� (Difficult, Dangerous and Dirty) jobs, but it has spread to other industries such as construction, food service, cleaning, and healthcare. The expansion of higher education has Junior Polytechnic aggravated the situation by drying up the supply of College and College Collegea University Koreans who are willing to take up “3D� jobs. (2-3 years) (4+ years) Korean employers have responded by recruiting Source: Authors’ construction. foreign workers. The government introduced the a Polytechnic Colleges are administered by the MOEL. All other Employment Permit System in 2004. As of May 2012, schools are administered by the MEST. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 10 Table 3: Number of Vocational Institutions and divided into training for the employed and pre- Enrollment, 1975 to 2010 employment training (see Figure 12). The focus of vocational training has shifted in recent years from Vocational High basic training for new employees to supporting skills Junior Colleges Schools upgrading and lifelong learning for incumbent workers. Students Students Schools Schools (1,000) (1,000) Key Government Bodies. The two key Ministries 1975 479 475 101 63 responsible for WfD (Education and Labor) have undergone considerable transformation in structure 1980 605 764 128 165 and function during the course of Korea’s economic 1985 635 886 120 242 development. Table 4 provides an overview of these changes. 1990 587 811 117 324 1995 762 911 145 570 A unique feature of the development of Korea’s WfD 2000 764 747 158 600 system is the key role played by a central planning agency called the Economic Planning Board (EPB). 2005 713 503 158 530 Created in 1961 and headed by the Deputy Prime 2010 692 466 145 464 Minister, the EPB served as a hub for creating and Source: Ministry of Education, Science and Technology and Korean coordinating the implementation of national Educational Development Institute, Annual Education Statistics Report. development plans and played an important role in engineering programs, 25.0% in social studies, 16.8% allocating resources, directing the flow of credit and in arts and sports, and 27.5% in other programs such as assuring the alignment of WfD policies to economic healthcare and education. Table 4: Ministries Responsible for Vocational Vocational Training. Vocational training in Korea is Education and Vocational Training, 1948 to 2010 provided by training centers under the direction of the Name of Ministry MOEL. Vocational training funded by the MOEL is Year Scope of Responsibility or Office Figure 12: Korea’s Vocational Training System, 2010 Vocational Education Ministry of Culture ▪ Culture 1948 and Education ▪ General education (MOCE) ▪ Vocational education Ministry of ▪ General education 1990 Education (MOE) ▪ Vocational education ▪ General education Ministry of ▪ Vocational education Education and ▪ Establishing, overseeing, 2001 Human Resource and coordinating human Development resource development (MOE&HRD) policies on a national level Ministry of ▪ General education Education, Science 2008 ▪ Vocational education and Technology ▪ Science & technology (MEST) Vocational Training a 1948 The Labor Bureau ▪ Labor affairs a 1963 The Labor Office ▪ Labor affairs ▪ Industrial relations Ministry of Labor 1981 ▪ Industrial safety & health (MOL) ▪ Vocational training ▪ Employment (including Ministry of vocational training) 2010 Employment and ▪ Industrial relations Labor (MOEL) Source: Authors’ construction. ▪ Industrial safety & health a Includes special programs for SMEs Source: Authors’ construction. b a Includes targeted training for farmers and fishermen Office within the Ministry of Health and Social Affairs SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 11 development strategy. As part of the process of Vocational Training Framework Act of 1976. In 1974, elaborating successive Five-year Economic the government issued a decree which imposed in- Development Plans, the EPB instituted a manpower plant training obligations on large enterprises in six key planning system at the national level and undertook industries. This sharp shift in policy, from a system of major updates of this system every five years. While training subsidies to one that required large the Ministry of Education and the Ministry of Labor enterprises to train workers, was motivated by the were responsible for setting policies for the vocational government’s strong desire to improve productivity in education and training system, the EPB exercised the export-oriented industries, as well as concerns oversight over these policies and, at times, adjusted about the long-run fiscal sustainability of the training them to promote coherence with other aspects of subsidy system. The decree met with vehement economic policy. In the late 1980s, the EPB’s direct role opposition from the industrialists affected, however. in coordinating the efforts of the line ministries began The 1976 Vocational Training Framework Act was a waning. In 1994, it was merged with the Ministry of compromise agreement. It introduced a training levy Finance to form the Ministry of Strategy and Finance. system which required all companies employing more By this time, the task of coordinating the actions of than 300 workers in selected strategic industries to multiple government ministries, which the EPB had provide in-plant training to new workers. Any company performed so well in the past, appears to have been that did not comply was required to pay into the institutionalized, obviating the need for an agency Vocational Training Promotion Fund an amount dedicated to this task. equivalent to the cost of providing such training. This obligation was expanded to companies with 150 or Financing Skills Development more employees in 1992. As indicated earlier, two ministries in Korea are From 1976 to 1995, the financial resources for the responsible for WfD: the Ministry of Education for vocational training system came both from the vocational education and the Ministry of Labor for Vocational Training Promotion Fund and from the vocational training. central government’s annual budget allocations. In 1994, the year before the Fund was integrated into the Vocational Education Employment Insurance System (EIS), it provided 112.2 Korea spent 7.6% of GDP on educational institutions in billion Korean won (54.9%) of the total 204.3 billion 2008. The budget for the vocational education is Korean won (301.17 million in constant 2005 USD) supported by tax revenue. MEST’s education budget invested in vocational training that year. provides funding for primary and secondary school education and national universities; some support for Employment Insurance System (1995-present). In 1995, private universities and for administrative and the levy system was replaced with a system of grants research organizations is also provided. Due to the for on-the-job training for most companies with fewer unavailability of data, it difficult to determine exactly than 1,000 and greater than 70 full-time employees. what proportion of the government’s educational These firms were instead required to pay a payroll tax, expenditure goes to vocational education. which was used to finance the Job Skill Development Program (JSDP) under the EIS. Under the JSDP, the government used proceeds from the payroll tax to Vocational Training provide subsidies to support firms’ training programs Vocational Training Act of 1967. This Act stipulated as well as to provide reemployment training to that in-company training programs that met certain unemployed workers and to provide subsidies to standards and conditions pertaining to instructors, individuals pursuing continuing education. The JSDP facilities and curriculum would be eligible to receive was well-received by employers, many of whom government support. To foster a culture of training and complained that the types of training mandated under productivity improvement among enterprises, the the levy system were too restrictive. Accordingly, government initially focused on 16 large enterprises by applications for reimbursement for training-related giving them training subsidies, with the hope that large expenses rose in the early years of the program (see enterprises would increase training to incumbent Figure 13). Mandatory participation in the JSDP workers and hire fewer skilled workers directly from program was scheduled to be expanded to all SMEs and that SMEs, in turn, would increase the employers by 2002, however this expansion was amount of training provided to workers. moved up to 1998 in response to the rapid rise in unemployment and concomitant strain on social safety nets caused by the Asian financial crisis. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 12 In 2009 roughly 80% of public funds for skills entrants, vulnerable groups (e.g., North Korean development were channeled through the EIS, with the defectors, sole proprietors, and people undergoing JSDP being the primary mechanism. Budgetary rehabilitation) and for training in skills needed by key contributions make up the other 20% and are usually industries. earmarked for training for unemployed labor market Figure 13: Threshold for Participation in and Claims Made to the JSDP, 1995 to 2004 100 100 90 90 Number of firms (1,000s) (Number of employees) 80 80 70 70 Size of firms 60 60 50 50 40 40 30 30 20 20 10 10 0 0 Size of firm above which participation in Employment Stabilization and Vocational Competency Development Programs was required Number of firms making claims to the JSDP Source: Authors’ construction; Keum et al. (2006). Note: The dip in the number of firms making claims to the JSDP in 2002 is due primarily to the use of a different method for classifying firms in that year. Funding for firms through the JSDP remained fairly constant from 2000 onward. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 13 Overview of Benchmarking Results The SABER-WfD benchmarking results reveal that Figure 15: Benchmarking Results – Policy Goal Level Korea’s WfD system steadily progressed between 1970 and 2010 under sustained leadership by and support from the government. Overview of Results Figure 14 shows the results for Korea for the three Dimensions in the SABER-WfD framework. 7 Korea’s Strategic Framework for WfD scored at an established level in 1970 and jumped to a highly advanced level in 2010. System Oversight progressed more steadily, but from a lower initial level of development. This aspect of the system was emerging in 1970 and reached an advanced level of system development by 2010. Service Delivery has lagged behind the other two Dimensions, with the system moving from emerging to established. Progress in this aspect of the system, as in the others, was more modest before 1990 but accelerated considerably in the most recent study period. Figure 14: Benchmarking Results – Dimension Level 1–Latent; 2–Emerging; 3–Established; 4-Advanced Strategic System Oversight Service Delivery Framework Landmarks in the Journey of Reform Note: The above composite scores are the same as the categorical ratings shown on the cover of this report. They have been converted using the Strategic Framework. The SABER-WfD benchmarking rules indicated in footnote 4 on page 6. exercise indicates that Korea has a very advanced system with respect to this Dimension. Strategic WfD As discussed in the introduction, each Functional issues enjoy the sustained attention from apex-level Dimension is composed of Policy Goals spanning three leaders in government, industry, training providers and broad areas of governance, finance and information. research institutions. These stakeholders coordinate Each of the Policy Goals is in turn further defined by their actions, both formally in several government- three concrete Policy Actions, making a total of nine convened fora and also through extensive informal Policy Goals and 27 Policy Actions. Figure 15 shows the exchange. Employer input and extensive data benchmarking results for each of the Policy Goals. The collection are used to continually reorient the system to scores for the Policy Goals are averages of the align it with emerging skills demand. underlying Policy Action scores. The approach involves Apex-level commitment to creating appropriate WfD the application of simple weights to aggregate the strategy, as well as extensive evaluation of skills scores at the Policy Actions level, typically 1/3 for demand and supply and the practice of convening information relating to policy concepts and design and stakeholders to jointly discuss strategy have been areas 2/3s for information relating to policy implementation. of sustained good practice since before 1970. In The results for each Policy Action are presented and subsequent periods, Korea’s sustained support for WfD discussed in the Detailed Results section of this report. has grown in sophistication and scope. These practices represent a strong and abiding acknowledgment of the importance of WfD to Korea’s economic development agenda by the highest levels of government. 7 See Annex 2 for the full results. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 14 Korea’s success story in this Dimension is one of has been a motive force behind the evolution of Korea’s gradual progress based on consistent and sustained WfD system into one of the best in the world today. A effort rather than any specific landmark reform. 8 Over groundbreaking initiative to establish a vocational the period under study the formality and importance of training system in Korea started with the promulgation non-government stakeholders’ contributions in apex- of the Vocational Training Act in 1967. It laid out the level dialogue has increased. In particular, the fundamental elements of the system, including public formalization of the roles of employers has contributed and enterprise training programs and skills testing. to encouraging productive employer input, making the Landmark reforms in the form of the National Technical process of setting strategic priorities increasingly Qualifications Act in 1973 and the introduction of a levy demand-driven. The information that fed into the system in 1976 helped drive the system’s rapid process of setting strategy also increased in scope and development. The former piece of legislation began a depth. By 1990 the number and quality of both regular process of creation of comprehensive national skills and special-purpose assessments was increasing, and standards assessed through standardized testing both in-house reviews and independent external protocols. From this strong foundation, both the skills evaluation of policies had become a routine part of the qualification framework and testing procedures strategic planning process. continued to evolve in line with national economic strategy and international best practices. The System Oversight The SABER-WfD benchmarking introduction of a levy system not only encouraged firms exercise indicates that on system oversight Korea to train employees but also was a crucial component of achieved an advanced level of system development in a successful multipronged government effort to 2010. Highly sophisticated systems of standards for increase partnerships between employers and trainers. accreditation and testing set high benchmarks for The levy system was simplified as a payroll tax and system performance and helped promote its credibility rolled into the Employment Insurance System in 1995, among employers. By 2010 employers had become thereby creating a dedicated fund from which the active participants in system governance and oversight. government offered grants for training to firms (which The system benefitted from high levels of employer may be provided by public and private training participation in setting funding priorities, designing institutions) and to unemployed individuals. and revising programs and curricula and in providing Additional important reforms included increasing material inputs and internship opportunities. The government support for lifelong learning through national Employment Insurance System provided a clearer and more numerous pathways for individuals to dedicated fund from which employers could draw to enter and leave the technical and vocational education support training of employees. Supported by the (TVET) system and changes in the processes by which activities of research institutes and think tanks, the budgets for WfD were set and reviewed that increased government actively reviewed and revised oversight both stakeholder input and the focus on achieving and governance structures to promote systemic efficiency in resource allocation. efficiency and effectiveness. Service Delivery. The SABER-WfD benchmarking Public and private providers are managed in almost exercise indicates that this Dimension was at an identical ways within the Korean system. Both receive established level by 2010. Formal links between considerable public funding, whose provision is vocational education providers and industry, mandated contingent on adherence to robust standards regarding by legislation, had become robust and widespread. curriculum, facilities and staff recruitment and Industry exercised an advisory role at the national level management. This creates a system where in curriculum design and setting funding priorities. accreditation standards are supported by hard Many employers have also established formal penalties for non-compliance, since it is neither legal relationships with providers in the form of internship nor financially practical for institutions to operate and work-based learning programs, training for without accreditation. The consistent enforcement of instructors, donations of used equipment and standards in line with economic development priorities membership on governing boards. The government and TVET providers both consulted extensively with quasi- 8 governmental think tanks and consultancies in the During the early years of Korea’s development the Economic areas of curriculum design, pedagogical methods and Planning Board, a unique and effective central planning body, played alignment of program offerings to skills demand. an important role in ensuring the coherence between WfD strategy and broader economic development strategy. See page 11 for more Providers were required to submit data on institutional details about this institution. performance and were subject to penalties for non- compliance. While providers were not required to SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 15 meet specific targets, these data were important inputs elaboration of the first Five Year Economic into both allocating resources to achieve systemic Development Plan in 1962. Korea’s experience shows efficiency and generating and disseminating knowledge the benefits that accrue to consistent, well-informed on effective practices and innovations in service and well-coordinated apex-level advocacy for WfD. delivery. Second, Korea’s WfD system has adapted to respond to Korea has consistently exemplified good practice in each stage of economic development, enabling it to collecting and maintaining data on service delivery. It satisfy the skills demands of the labor market while has invested considerable resources in cultivating the also improving the quality of the skills of the workforce. institutions and practices necessary to support these As the economy developed, the government shifted its activities. Those responsible for overseeing and focus from basic training in skills needed by the managing Korea’s system for service delivery benefited manufacturing sector to providing both basic and from a wealth of both macroeconomic and institution- advanced training in a much broader range of skills. level data and have effectively leveraged this to manage Also, as the economy developed, the emphasis of WfD service delivery and incentivize performance. Specific shifted from the training of new recruits to in-service performance incentives were not widely used in Korea, training and upgrading of existing skills. The structure especially before 2010. Instead, the government drew of the WfD system, which was driven by government- on its extensive analysis of skills demand and supply to subsidized private training in the initial stage (1960s manage overall system inputs and outcomes and through 1976) and government-led public training in provided guidance to providers in the form of the next stage, is again transitioning to a private-led directives backed up with the resources to fulfill them. paradigm marked by voluntary firm participation and government support. Systems for funding WfD have The biggest changes in service delivery were made in also changed to suit each stage of economic growth, the following two areas: more and deeper linkages with the government-led system of obligatory in-house among training providers, industry, and researchers at training supported by a levy being reorganized into the the institution level; and an increase in formality, private sector-led Employment Insurance System in regularity, and scope of assessments of provider and 1995. system performance. The first advance resulted in significant collaboration in the areas of internships, in- Third, the government made funding for vocational kind contributions and the introduction and revision of education and training providers conditional on training programs. The second advance represented an meeting system-wide standards for programs, facilities, increase in government regulatory capacity as it began and instructors. This top-down approach has allowed to use data that had been collected for the entire period the government to adjust the system to meet evolving in novel ways. Governance through system-level economic development needs and emerging economy- standards and directives began to be supplemented by wide skills constraints. The homogeneity that this more granular, rigorous monitoring and evaluation system of national standards created also simplified coupled with an increasing focus on providing monitoring of institutional performance and created a institutions and staff with performance-based simple, open system for student transfers. incentives. Fourth, early identification of the skills demands of Reflections on Lessons from Korea industry and addressing these demands through appropriate policy is essential for a successful An abundant, appropriately-skilled workforce has been workforce development system. During the early stage a major factor in the rapid development of the Korean of industrialization which focused on heavy and economy. The availability of the right workers to chemical industries, Korea instituted manpower support industrialization and economic diversification planning, whereby the government estimated the is the product of the sustained success of Korea’s WfD required number of skilled workers needed by priority efforts. There are several key factors behind this industries and took steps to calibrate the training success. system accordingly. This approach has evolved over time. The government no longer carries out detailed First, the link between WfD and Korea’s economic manpower planning but now annually conducts the agenda has received consistent, institutionalized Workforce and Training Demand Survey to measure emphasis and attention from the very top levels of skills mismatches at the regional level. Results from government. Indeed, WfD has been integrated into such surveys are used to provide information to job Korea’s economic development strategy since the seekers about where their skills may be in demand and SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 16 what additional skills it may be useful to acquire. 1970s and early 1980s, when vocational education However, no system-wide requirements for the use of enjoyed parity in stature with academic tracks due to information available through employment information the high demand for and high social value placed on services to improve programs and curricula have been technical skills. In response to this falling off, the established, leading some to argue that the link Korean government has recently taken measures to between training and employment service is still too increase the employment rate among vocational high weak. school graduates in an effort to increase the desirability of vocational education. These measures are beginning Fifth, the WfD system is an effective means to bring to drastically change secondary vocational education. those working in the informal sector, who are not For instance, the government has launched a “Work protected by social safety nets, and other vulnerable First - College Later� policy to encourage high school groups into the formal sector. The large-scale training graduates to enter the labor market and work for for the unemployed in response the Asian financial several years before going to college. A new type of crisis helped contribute to a rapid reduction in the specialized vocational high school, the so unemployment rate after the crisis. A large portion of called �Meister High School,� was also introduced in the training for the unemployed in the wake of the 2010 to help improve the stature of vocational crisis was focused on the information and education and address emerging strategic skills gaps. communication technology (ICT) industries, which has helped facilitate Korea’s success in this sector. Public To sustain economic development, it is essential to training for the industries identified as being of nurture, allocate and utilize human resources in a way strategic importance for future economic growth is that sustainably creates employment and supports high risky, but when it is carefully planned and monitored, it value-added activities. This involves training highly- can help both employed and unemployed workers, skilled technicians and experts who can work across a especially vulnerable workers. diversity of globally-competitive industries. Making opportunities for continued learning available for these Challenges for the Future individuals throughout their career to allow them to upgrade and acquire necessary skills is important. WfD Despite the many lessons to be learned from the policies for the future should, therefore, be designed in Korean case, Korea currently faces challenges in WfD. a way that provides systemic flexibility to quickly The rate of Korean high school students’ progression to respond to potential shortages of skills supply. The higher education is among the highest in the world. challenges of doing so may be one factor contributing to Many have pointed to the high social value placed on decreasing cost efficiency of the Korean system. These education by Korean society, dubbed “education fever,� demands require creative responses that may involve, as a major force behind this phenomenon. Korea’s among other things, more intensively tapping women spectacular progress in modernization and economic and older people as sources of talent to address growth since the 1960s is largely attributable to the challenges related to rapid aging of the Korean willingness of individuals to invest a large amount of population and increasing provisions for bridging resources in education. However, in light of many learning and work to support a more robust lifelong families’ strong preference for academic higher learning system. education, vocational education has now become a second-choice option. This stands in contrast to the SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 17 Detailed Results Dimension 1 | Strategic Framework9 Policy Goal 1 Articulating a Strategic Direction for WfD Policy Goal 2 Prioritizing a Demand-led Approach Policy Goal 3 Strengthening Critical Coordination 9 The composite scores shown in the dial are the same as the categorical ratings shown on the cover of this report. They have been converted using the rules indicated in footnote 4 on page 6. The categorical ratings conform to the standard presentaion of results in the SABER intiative, while the presentation in the dials reveals more detail. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 18 Dimension 1 | Strategic Framework Policy Goal 1 Articulating a Strategic Direction for WfD 1970 1990 2010 The SABER-WfD benchmarking exercise indicates that First (1962-66) and Second (1967-71) Five Year Plans on Policy Goal 1 Korea progressed from established for the Promotion of Science and Technology, written levels in 1970 and 1990 to an advanced level in 2010. to guide the actions called for in the Economic These summary results reflect the scores of the three Development Plans, set expanding training in skills for underlying Policy Actions: the degree to which the key industries as a priority. Accordingly, the number of country prioritized WfD; the extent to which its technical schools was increased while the number of priorities were based on assessments of future agricultural and fisheries high schools was reduced. economic prospects; and how well its policies The curriculum taught in technical high schools was systematically took such analyses into account. also revised to better address emerging skills gaps. 1990: The system continued to benefit from the strong  Advocate for WfD as priority for foundations laid in previous years. Sustained economic development leadership from government, industry and labor continued through an institutional framework very This action scored at an established level in 1970 and similar to that in place in 1970. Protocols for making 1990, and reached an advanced level in 2010. policy decisions and channels for industry input Overview 1970 – 2010: By 1970 the Korean remained in place despite several changes in political government had already identified WfD as a key to the leadership. Korea needed more advanced skills as it success of its comprehensive Five Year Economic developed, so national plans placed more focus on Development Plans, the first of which was approved in teaching science and engineering in higher education. 1962. In subsequent periods, Korea’s sustained These plans also emphasized the need for continual support for WfD has grown in sophistication and scope. revision of vocational education curricula to keep pace Successive national-level strategic plans have guided with evolving skills demand. the reorganization of the WfD system to keep pace with 2010: The increased high-level formal input from non- the changing structure of the economy (see Table 5 on government stakeholders as well as the inception of the following page). 10 By 2010, the support for WfD in several research institutes that conducted regular national economic development strategies was assessments brought the system to an advanced level of augmented by the creation of institutionalized fora for development. widespread industry voice as well as several research bodies that hold evaluation and improvement of the The legal framework for WfD put in place in the 1960s WfD system as a primary mission. was updated with the passage of the Workers Vocational Skills Development Act (2004) and the 1970: The system benefitted from sustained advocacy Promotion of Industrial Education and Industry- by political leaders as well as high-level industry Academic Cooperation Act (2009). Under this support. The legal foundation for this collaboration framework, National Human Resource Development was established in the mid-1960s with the passage of meetings were held every two months. These meetings two key pieces of legislation: the Industrial Education were chaired by the President and attended by industry Promotion Act (1963) and the Vocational Training Act federations, trade unions and fourteen ministries. This (1967). broad set of stakeholders also collaboratively The First (1962-66) and Second (1967-71) Five Year developed the First (2001-05) and Second (2006-10) Economic Development Plans recognized the necessity General Plans for National Human Resources of training skilled workers to support Korea’s push to Development, which pursued 200 separate policy establish export-oriented light industry and made issues including training and developing human provisions for the necessary budgetary allocations. The resources with international competencies, improving national lifelong learning competencies, promoting social integration and educational and cultural welfare, 10 During the early years of Korea’s development the Economic and expanding human resource development (HRD) Planning Board, a unique and effective central planning body, played infrastructure. an important role in ensuring the coherence between WfD strategy and broader economic development strategy. See page 11 for more Formal assessments, sponsored by various ministries, details about this institution. were regularly conducted by government-affiliated SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 19 Table 5: Evolution of WfD in response to the Five Year Economic Development Plans, 1962 to 1997 Five Year Economic Development Plan Legislation and Reform Measures Period Key Reform Priorities Vocational Training Vocational Education • Building the foundation for • Basic training for low-skilled • Industrial Education Promotion Act FIRST industrialization workers (1962-1966) • Export-led growth driven by light industries • As above • Vocational Training Act • Five Year Science and Technology Promotion SECOND • Five Year Science and Plan (1967-1971) Technology Promotion Plan • Deepening industrialization • Special Measures for Vocational • Amendment of Industrial Education • Export-oriented growth Training Act Promotion Act driven by heavy and • Act on the Establishment of • Specialization of technical high schools THIRD chemical industries Vocational Training Promotion • Establishment of Air & Correspondence High (1972-1976) • Macroeconomic stability Fund Schools • National Technical • Introduction of vocational programs in Qualifications Act general high school curriculum • Promotion of technology- • Initiation of the requirement of • School-industry partnerships FOURTH intensive industries in-service training for employed • Admission quota raised for engineering (1977-1981) • Balanced, export-oriented workers and measures to departments in junior colleges growth promote employment stability • Macroeconomic stability • Plans for strengthening • Improving vocational high school • Fostering knowledge and Vocational Training performance FIFTH information industries • Long-term investment in science and tech. (1982-1986) • Balanced, export-oriented • Reform of higher education institutions growth • Creation of rules governing the foundation and management of open universities • Deepening industrialization • Basic Plan for Promoting • Reform of high school TVET system SIXTH • Fostering competition Vocational Training • Introduction of 2+1 system in engineering (1987-1991) • Increasing economic • Expansion of the scope of high schools openness industries obligated to conduct • Balanced growth training of employees • Transition to low-cost, high- • Employment Insurance Act • Employee training contracted to junior SEVENTH efficiency economy • Vocational Training Promotion colleges (1993-1997) • Establishment of a free and Act fair economic order Source: Authors’ construction. institutes such as the Korea Research Institute for implementation of reform aimed at maintaining a skills Vocational Education and Training (KRIVET) and the pipeline that accommodates evolving demand. Korea Education Development Institute (KEDI). 1970: The system has featured institutionalized  Evaluate economic prospects assessment of economic prospects since Korea’s first concerted push to spark economic growth in the early and implications for skills 1960s. Detailed manpower forecasts were conducted This action scored advanced in 1970, 1990 and 2010. to inform the first two Five Year Economic Development Plans. These forecasts were used to Overview 1970 – 2010: Economic analysis informed predict the magnitude of labor surplus or shortage for Korea’s First Five Year Development Plan in 1962 and industries across the economy. The government used has remained the leading edge of setting strategic WfD these forecasts as an input to the process of developing priorities up to the present day. The Korean the National Education Curriculum for Vocational High government’s research capacity and strong connection Schools (1963) and the Vocational Training Standards to both think tanks and employers have allowed setting for vocational training institutions (1967). strategic priorities to be a data-driven process. These priorities have been vigorously pursued through the SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 20 Both the Ministry of Labor (MOL) 11 and the EPB Table 6: Linking Vocational Education to Economic conducted regular labor force surveys to support their Strategy, 1960 to 2010 planning and policy work. The MOL also conducted Workers in Level and Key focus annual employer surveys to keep apace of emerging Economic Period high type of of policy skills gaps. Employers provided less formal input strategy demand training response through regular meetings with WfD authorities. High school Labor- and During the 1970s, the government put in place policies 1960s to intensive Low-skilled on-the-job Expand meant to effect a fundamental shift in economic mid-1970s Industries vocational structure towards the heavy and chemical industries. In training 1973, the government chose six strategic industries Mid-1970s Capital- including steel, nonferrous metals, machinery, Junior to mid- intensive Technicians Expand shipbuilding, electronics and chemicals. In order to college 1990s Industries develop the selected industries, the government Strengthen provided financial and economic incentives to Knowledge Engineers university- companies who followed the government policy. As Mid-1990s -based and University industry- large-scale investment continued, the manufacturing to 2010 Industries scientists research industries grew rapidly. This rapid structural change linkages further raised the demand for skilled workers and Source: authors’ construction. technicians. Primary responsibility for long-term economic The government responded by strengthening technical forecasting transferred to the Korea Development and vocational education at the secondary level. In Institute (KDI), a government-affiliated economic think addition, the government expanded public vocational tank established in 1971 that worked closely with the training centers and imposed training obligations on MOL and the EPB. The economy-wide analyses large enterprises in the strategic industries. It replaced conducted by KDI were used to develop an appropriate this arrangement with a training levy system in 1976 WfD strategy and complemented the manpower that required firms in the selected industries with 300 forecasts that were still being conducted in preparation or more workers to either train their employees or pay for writing the Five Year Economic Development Plans a levy into the Vocational Training Promotion Fund. (see Table 6). At the same time, the government introduced a scheme These analyses prompted a slew of significant reforms of “Specialization of Technical High Schools� to quickly including an increase in the number of public train the skilled workers needed in the priority vocational training institutions, the introduction of the industries. The government provided special Vocational Training Promotion Fund to increase in- administrative and financial supports to the schools. company training, and the establishment of the Under the scheme, there were 19 specialized technical Vocational Training Management Agency to supervise high schools, with a total enrollment of 13,920 in 1979. all public training institutions and skills testing and to provide support for firms’ training activities. 1990: The system continued to provide leaders with robust data and remained at an advanced level of 2010: Despite considerable institutional shuffling, the development. Korea’s economic development strategy system remained keenly attuned to employers’ skills in the 1970s and 1980s focused on cultivating heavy requirements and retained its capacity for self- and chemical industries. The MOL and the EPB both evaluation and improvement. Several organizations made monitoring the supply and demand of engineers invested considerable effort in measuring skills and technicians needed for these industries a priority. demand and supply, with KRIVET, the Korea Employment Information Service (KEIS), and the MOL all conducting regular employer and industry surveys, 11 and Statistics Korea conducting monthly labor force During the 1970s the body in charge of skills training was the surveys. These surveys were critical to both the Labor Office within the Ministry of Health and Social Affairs. conception and monitoring of high-level strategic plans However, since the bodies performing the functions of the Ministries of Labor and Education both underwent several reorganizations and such as the Framework Plan for Lifelong Vocational were renamed several times between 1970 and 2010, in the rest of Skills Development (2007) and the First (2001) and the report the generic Ministry of Labor (MOL) and Ministry of Second (2006) General Plans for National Human Education (MOE) are used for simplicity’s sake. Table 4 on page 12 Resource Development. provides details on the dates and substance of all changes to the name and function of the MOL and MOE. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 21  Develop policies to align skills of development. Government ministries, KDI, KEDI and demand and supply the Korea Vocational Training Management Agency- affiliated research institute all conducted regular and This action moved from an emerging level in 1970 an ad hoc assessments to understand the nature of the established level in 1990 and 2010. skills imbalances and prepare for the introduction or revision of major policies. In-house reviews were Overview 1970 – 2010: In 1970, policy design was conducted by ministries and government-affiliated mainly informed by limited in-house assessments of think tanks on an annual basis when developing the skills shortages, while the practice of reviewing policies vocational education and training plan for the following for impact was still emerging. By 1990 and 2010, the year. number and quality of both regular and special- purpose assessments had increased, and both in-house 2010: The system built on its good practices and reviews and independent external evaluation of remained at an established level of development. policies had become a routine part of the strategic Ministries and research institutes such as KRIVET and planning process. The increasing breadth, depth and KEIS continued conducting regular assessments to sophistication of this feedback loop are the main understand the nature of the skills imbalances in all impetus behind the system’s steady development. sectors. One finding was that unemployment and underemployment among youth and certain vulnerable 1970: The system for linking policy to rigorous populations was a persistent issue. The increasing assessments of economic prospects was still emerging importance of high-tech, green and knowledge-based in 1970. While the government developed policies industries also had created increased demand for new based mainly on in-house reviews that were not always technical skills as well as soft skills, creative thinking particularly rigorous, it was nonetheless able to and English-language skills. Establishing a reliable implement policies that helped alleviate critical skills pipeline for appropriately-skilled workers was also bottlenecks. impeded by the fact that as Korea grew wealthier, TVET suffered from the widespread public perception that it Surveys conducted by the EPB and the MOL revealed was a second-tier track. the limited availability of high quality training and instructors. In response, the government increased the In response, the government instituted a series of number of vocational schools, expanded vocational meaningful reforms across a range of policy domains education curricula and rapidly increased the including the establishment of Meister High Schools availability of short-term, employer-based and evening (see Box 5 on page 36) to help improve the stature of courses. It also established the Central Vocational vocational education and address emerging strategic Training Institute in 1968 under the MOL to train skills gaps. At the post-secondary level reforms focused instructors, administer qualifications testing and on improving the quality of junior colleges through publish training material to help standardize the specialization, increasing opportunities for work-based provision of TVET. learning, and instituting a performance-based government funding scheme based on a rigorous 1990: The scope, maturity and importance of skills formula that rewards institutions for successfully assessments to policymaking and their impact on policy placing graduates in jobs, the efficient use of fees and decisions grew in scope and maturity in the twenty other funds and the quality of faculty and students. years to 1990, yielding a system at an established level SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 22 Dimension 1 | Strategic Framework Policy Goal 2 Prioritizing a Demand-led Approach 1970 1990 2010 Policy Goal 2 examines employers’ engagement at the 2010: The advisory role played by business and strategic level, government incentive programs for industry deepened in the decade leading up to 2010 skills upgrading, and efforts to address future skills while the number of stakeholders conducting routine challenges. Results of the SABER-WfD benchmarking assessments to gauge skills demand proliferated, exercise indicate that Korea progressed from an yielding an established system attuned to changes in emerging level in 1970 to an established level in 1990 skills demand. and reached an advanced level in 2010. The government asked industry to review and recommend adjustments to the Framework Plan for  Promote a demand-driven Lifelong Vocational Skills Development before it was approach ratified in 2007. The high-level HRD Forum, sponsored This action scored at an emerging level in 1970 and by the MOL, and Future Human Resources Forum, improved to an established level in 1990 and 2010. sponsored by the MOE, both counted industry representatives among the ranks of invited Overview 1970 – 2010: Although formal structures stakeholders. These bodies regularly met to discuss, for engaging industry representatives on workforce review and propose policies related to HRD, research development were in place by 1970, these stakeholders and development and industry partnership with played a limited role in establishing and implementing universities and training providers. In the early 2000s, WfD priorities. In subsequent periods, they became the government introduced Sectoral HRD Councils more actively involved, albeit still in an advisory (SHRDCs) to increase the cooperation between capacity. The voice of industry has been further education and training providers and industry within amplified in the most recent period through a sharp key sectors, using, using the UK’s Sector Skills Councils rise in the number, quality and continuity of systematic as a model. In collaboration with SHRDCs, the assessments of skills demand. government developed vocational school curriculum, training standards and qualification standards. 1970: The system allowed for limited and occasional advisory input from business and industry. The Routine studies to gauge employers’ demand for skills Vocational Training Act of 1967 created the Vocational were conducted by government agencies, industry Training Review Committee and empowered it to associations, labor unions, think tanks, and even some assess and review vocational training programs and large firms themselves (e.g., the Samsung Economic skills certification. The Committee consisted of Research Institute). workers, employers, public servants, and vocational training experts and reviewed major issues and policies  Strengthen firms’ demand for pertaining to WfD, providing advisory inputs in setting skills to improve productivity and implementing WfD priorities. Meetings, however, did not take place very often. In addition to these This action scored at a latent level in 1970and 1990 and formal channels, the government solicited industry reached an advanced level in 2010. input through informal meetings. Overview 1970 – 2010: In 1970, there were few 1990: While few major changes to the system were incentives and services to support skills development made during the 1970s and 1980s, the amount and for technology upgrading by firms. The inception of a frequency of industry input increased, raising the level levy system in 1976 provided increased resources for of system development. The Vocational Training training while making employers more active Review Committee was largely unaffected by the major stakeholders. This positive first step was followed in Framework Act on Vocational Training, enacted in the most recent period by a significant increase in the 1976. The Committee continued to review major issues scope of incentive programs, in the services available to and policies pertaining to WfD, but provided advisory firms to help address critical skills constraints and, inputs in the setting and implementation of WfD most notably, in the robustness of procedures for priorities with more regularity and vigor than in the reviewing government support for addressing skills previous period. constraints. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 23 1970: The system featured limited financial incentives 2010: The rapid diversification of government support in support of skills development for technology along with the initiation of a robust system for annual upgrading. For example, in 1962 the government issued reviews of incentives pulled the system from the latent the Decree on Training the Unskilled Workforce, which level to the advanced level in less than twenty years. allowed firms in selected industries to pay newly-hired The scope of support financed through the Vocational unskilled workers less than the normal rate if the firm Training Promotion Fund increased markedly with the committed to train the workers. In addition, the Fund’s integration into the EIS in 1995. Financial Vocational Training Act stipulated that in-company support for training was extended to employed training programs that met certain standards and individuals through programs that reimburse conditions pertaining to instructors, facilities and the employees for training (employees were provided with curriculum would be eligible to receive government Individual Skills Development Cards as verification of support. While these in-company training programs employee status) and through the provision of student accounted for a major portion of total training, in 1970 loans. Proposal-based training grants over and beyond the total number of individuals trained was relatively what could be claimed through the insurance system low (see Table 7). were also made available to SMEs that formed consortia for providing training to workers. The Table 7: Number of Vocational Trainees by Five Year Vocational Training Management Agency was Economic and Social Development Plan, 1967 to 1992 reorganized as HRD Services of Korea and extended its Total services beyond consulting to providing funding for Persons Share of Total Trainees (%) training centers (see Box 2). Annual reviews of the Plan Year (1,000s) incentive programs were conducted by government- Public In-plant Authorized affiliated think tanks such as KRIVET. Many of the key Training Training Private recommendations generated by these reviews were Provider Provider Provider implemented. 2nd 1967 99 36.7 48.8 14.5 Box 2: HRD Services of Korea 3rd 1972 313 26.0 56.7 17.3 HRD Services of Korea is an autonomous organization affiliated 4th 1977 496 24.2 68.1 7.7 with the Ministry of Employment and Labor that provides the 5th 1982 273 44.3 42.0 13.7 following services in support of WfD: 6th 1987 313 36.3 37.0 26.5 • Consulting services and support for SMEs that wish to 7th 1992 1,007 15.0 70.3 14.7 train; • Support for establishment and management of 1967-1992 2,501 30.4 53.8 15.7 Polytechnics; Source: MOEL, Statistics of Vocational Training. • Evaluation of vocational training facilities; • Training for TVET instructors and HRD professionals; • Administration of the National Qualifications Testing 1990: The diversity of government support increased System; slightly, but the system made only limited progress and • Conducting research in support of the National Technical was hampered by the absence of protocols for Qualification Testing System and management of reviewing and revising government support. While associated information system. little progress in terms of system development was noted for this period, steps taken before 1990 laid the  Address critical challenges in groundwork for the system’s rapid improvement after 1990. For instance, the Vocational Training the future supply of skills Management Agency, a government entity, was This action scored at an advanced level in 1970, 1990 established to provide consulting services to firms and 2010. regarding employee training programs. The government also introduced a levy system in 1976. Overview 1970 – 2010: Routine evaluations to assess Under this system, companies with more 300 the future supply of skills were institutionalized as part employees were required to either provide in-company of Korea’s five year planning cycle. This advanced training or contribute to the Vocational Training system has proven agile and resilient for the entire Promotion Fund. The amount that SMEs were required period under study and has helped set the benchmark to contribute was kept significantly lower than the levy for good practice. It has been able to grow in line with on larger firms to provide them with extra support. the increasing dynamism, complexity and openness of the Korean economy, and has consistently been SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 24 effective at anticipating and prompting action to needed for heavy and chemical industries. KDI, in address emerging skills mismatches. cooperation with MOL and EPB analyzed the long-term economic prospects for the Korean economy. These 1970: By 1970 the Korean government was both economy-wide analyses were used to develop conducting national assessments of future skills supply appropriate vocational training strategies. across several industries and promptly implementing Assessments of the future skills supply were conducted policies based on the results, giving the system an to develop the Vocational Training Development Plan in advanced score. The Vocational Training Division of 1990. Implementation of important recommendations the MOL conducted annual surveys to collect and remained swift, in part because adequate funding was analyze basic data for the Second Five Year Plan for the usually made available and the goals and Promotion of Science and Technology by technology responsibilities for implementation were made explicit. level and industry. Together with the Technology Development Bureau within the EPB, these two bodies 2010: The scope of assessments expanded to take into focused on evaluating the supply and demand of account both regional variations in skills demand engineers and vocational technicians needed for the within Korea as well as international trends. KRIVET labor-intensive light industry. In addition, the Survey and KEIS conducted annual assessments as well as of Employed Technical Manpower conducted by the longer-term ten-year assessments for all five regions EPB (beginning in 1961) examined the current and the nation as a whole. In addition, the government workforce in order to evaluate economic prospects and made assessments of international skills demand and skills implications for all sectors. Goals for reform were its implications for the Korean economy in preparation made explicit by President Park and monitored by the for signing several free trade agreements. All these MOL and EPB. Under this strong leadership, most efforts have contributed to the introduction of major recommendations were implemented, often within WfD initiatives, such as the designation of flagship twelve months. Meister High Schools to produce the highly-skilled technicians needed by strategic industries and the 1990: The continued the good practices of the President’s “Low Carbon, Green Growth� strategy and previous period helped facilitate the Korean economy’s the concomitant “greening� of Korea’s training system. movement into strategic growth industries. The MOL, Goals for implementing these and other reforms are together with the EPB, focused on evaluating the supply made explicit and progress is monitored by the relevant and demand for engineers and vocational technicians government bodies. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 25 Dimension 1 | Strategic Framework Policy Goal 3 Strengthening Critical Coordination 1970 1990 2010 Policy Goal 3 examines the quality of coordination They continued to deliver coordinated action in mechanisms among WfD leaders, how formally roles support for WfD priorities. However, a reduction in the and responsibilities are defined, and the existence and quality of collaboration across government ministries quality of regular interaction among stakeholders facilitated by Human Resources Development charged with implementing WfD strategies. Results of Committee caused benchmarking rating to fall slightly, the SABER-WfD benchmarking exercise indicate that moving the system from an advanced to an established with respect to Policy Goal 3 Korea progressed from an level. This did not drastically impede the rapid growth established level in 1970 and 1990 to an advanced in system scope and complexity, however. level in 2010. These summary results reflect the scores for the three underlying Policy Actions. 2010: By 2010, formal mechanisms facilitating apex- level coordination and implementation of strategy had  Ensure coherence of key been reorganized and revitalized. Formal weekly strategic WfD priorities meetings between the President and relevant ministers continued. In addition, in 2010, the President convened This action scored at an advanced level in 1970, an the National Employment Strategy Council to bring established level in 1990, and an advanced level in together members of nine ministries and five industry 2010. federations to address high youth unemployment, skills mismatch and the scarcity of sought-after jobs. This Overview 1970 – 2010: Apex-level coordination of council reviewed existing strategic initiatives such as key strategic WfD priorities has been a strong point in Meister High Schools and allocation for WfD in the the Korean system since before 1970. The system has national budget and proposed changes. The work of benefited from leadership by no less authority than the the council, as well as work done in the more regular country’s President throughout the period analyzed. It presidential meetings, resulted in important strategic also benefitted from the existence of both formal and decisions. One example was the reorganizing the MOL informal channels for regularly convening leaders of to better focus its resources on matching skills supply government and industry to discuss and agree on to demand and improving the labor market outcomes strategic WfD goals and approaches. The sustained of technical training program graduates. The attention to WfD challenges has helped Korea to forge a government’s formulation of Korea’s “Low Carbon, WfD system that has kept pace with the country’s rapid Green Growth� economic development strategy and economic development and that has consistently concomitant investment in green skills also benefitted achieved positive outcomes. from the attention of both groups. 1970: The system featured several mechanisms that  Institutionalize the structure of effectively facilitated coordination among key leaders in defining strategic WfD priorities. Within the WfD roles and responsibilities government, the President met on a weekly basis with This action scored at an advanced level in 1970 and ministers whose portfolio included WfD. These apex- 1990, 2010. level meetings were instrumental in coordinating WfD strategy and laying the groundwork for coherent Overview 1970 – 2010: The Korean system has been strategy implementation. Achieving this coherence was among the best in the world with respect to this Policy the function of the Human Resource Development Action from 1970 to the present. Each period under Committee, which served as an institutionalized forum study has featured the passage of major legislation that for the relevant ministers to coordinate the actions has retained precise designation of roles and taken by their respective ministries to implement WfD responsibilities for a wide group of stakeholders while policies. allowing the system to shift priorities and functions in line with changes in the structure of the Korean and 1990: The formal and informal mechanisms for global economies. coordination remained largely unchanged from 1970. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 26 Table 8: Major Legislation Defining Responsibility for WfD Act Stakeholder Responsibility National • Making plans for vocational training and skills testing Government • Convening the Vocational Training Review Committee Vocational Industry Groups • Participating in the Vocational Training Review Committee Training Act (1967) Labor Unions • Participating in the Vocational Training Review Committee Employers • Conducting vocational skills development training for employees National • Making plans for vocational training and skills testing Government • Convening the Vocational Training Review Committee Framework Act on Industry Groups • Participating in the Vocational Training Review Committee Vocational Training (1976) Labor Unions • Participating in the Vocational Training Review Committee Employers • Conducting vocational skills development training for employees National and Local • Formulating policies to promote and support vocational skills Governments development activities • Convening the Employment Policy committee on Vocational Skills Development Training Providers • Endeavoring to have trainees receive vocational skills development training suitable for their aptitudes and abilities, by providing counseling concerning vocational skills Workers development training, offering employment guidance, and Vocational Skills establishing selection criteria Development Act Employers • Conducting vocational skills development training for (2003) employees Workers (trainees) • Acquiring vocational skills according to their aptitude and abilities and cooperating in vocational skills development activities Industry Groups • Participating in the Employment Policy committee on Vocational Skills Development Labor Unions • Participating in the Employment Policy committee on Vocational Skills Development Source: Authors’ construction. 1970: The Vocational Training Act of 1967 and the the funds from the government treasury, significant Industrial Education Promotion Act of 1968 assigned resources flowed to the MOL from the dedicated clear roles and responsibilities to the MOL and MOE, Vocational Training Promotion Fund, established in training providers and employers (see Table 8). Under 1974. these acts the WfD authorities were empowered to coordinate WfD stakeholders’ inputs for WfD plans, 2010: Another round of new legislation retained the formulate and recommend strategy and policies for crisp definition of roles and responsibilities laid out in WfD, compile and disseminate WfD information and the Framework Act on Vocational Training and the knowledge, formulate budgets, and request funding Industrial Education Promotion Act while providing from government authorities. A combination of similar clarity to a larger set of stakeholders. The government expenditure and international aid Workers Vocational Skills Development Act, passed in provided the MOL and MOE with adequate resources to 2003, and the Promotion of Industrial Education and perform these functions. Industry-Academic Cooperation Act, passed in 2009, included provisions for the MOL and MOE, training 1990: The system was reorganized but remained providers, employers and industry groups. As in past advanced. The Framework Act on Vocational Training periods, the annual reports published by the MOL and (1976) and the Industrial Education Promotion Act MOE provided the transparency necessary for other (1990) retained clearly defined roles for the MOL and stakeholders to effectively engage with the ministries. MOE, training providers and employers. In addition to SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 27  Facilitate communication and Table 9: Evolution of Mechanisms for Coordination of Priorities and Implementation, 1970 to 2010 interaction among all WfD Formal Bodies that Formal Bodies that stakeholders Year Define Strategic Coordinate Strategy Priorities Implementation This action scored at an emerging level in 1970, moving • President’s weekly to an established level in 1990 and to an advanced level meetings in 2010. 1970 • Vocational Training • Human Resources Review Committee Development Overview 1970 – 2010: Translating the strategic Committee priorities set by apex-level leaders into positive results • President’s weekly on the ground requires coordinated action from meetings stakeholders charged with implementing WfD policies. • Vocational Training 1990 • Human Resources The establishment of the Employment Policy Review Review Committee Development Committee in 2007, which was created to consolidate Committee the duties of several disparate committees under the • Employment Policy MOL including the Vocational Training Review • President’s weekly Review Committee Committee, reflects a larger process of steady growth in meetings • Human Resource the formality, sophistication and sectoral reach of the • National Development Forum 2010 mechanisms for coordination in Korea between 1970 Employment • Regional Human and 2010. As a result of this process, by 2010, the Strategy Council Resources system included several more stakeholder (once in 2010 only) Development representatives in both strategy evaluation and Committee implementation than in previous periods (see Table 9). Source: Authors’ construction. 2010: The establishment of the Human Resources 1970: The Korean system featured formal structures Development Forum and Regional Human Resource that fostered limited organizational linkages and Development (RHRD) Committees kept the system on information sharing among stakeholders. The its positive trajectory. Both the HRD Forum and the Vocational Training Review Committee, chaired by the RHRD Committees serve to involve leaders from Vice Minister of Health and Social Affairs and composed important WfD stakeholders in reviewing HRD policies of representatives from labor and industry and discussing their implications. While these organizations, public servants and vocational training arrangements were meant to promote ownership and experts, served an important role in fostering broad improve coordination of policy implementation, in stakeholder cooperation as well as a mechanism for practice these efforts fell short of achieving consensus translating strategic priorities set at the apex-level into on priorities. The efforts of these committees were coordinated action. complemented by coordination on a more strategic level facilitated by the Future Human Resources Forum. 1990: The Vocational Training Review Committee had This body convened representatives from the grown in efficacy and reach, a result that can be government as well as technical experts, journalists and attributed in part to its redefinition through the a broad spectrum of stakeholders in bimonthly Framework Act on Vocational Training. By 1990 meetings to discuss policies for innovation. employers from most sectors enjoyed representation. In addition to the Committee, information sharing also Information access and exchange between WfD occurred through informal seminars conducted by stakeholders became significantly easier with the government-affiliated agencies such as the Korea introduction of NHRD-Net in 2002. This website serves Vocational Training Management Agency. as a clearing house for information on workforce development in Korea including research reports and policies and strategies proposed by the ministries and. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 28 Detailed Results Dimension 2 | System Oversight12 Policy Goal 4 Diversifying Pathways for Skills Acquisition Policy Goal 5 Ensuring Efficiency and Equity in Funding Policy Goal 6 Assuring Relevant and Reliable Standards 12 The composite scores shown in the dial are the same as the categorical ratings shown on the cover of this report. They have been converted using the rules indicated in footnote 4 on page 6. The categorical ratings conform to the standard presentaion of results in the SABER intiative, while the presentation in the dials reveals more detail. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 29 Dimension 2 | System Oversight Policy Goal 4 Diversifying Pathways for Skills Acquisition 1970 1990 2010 Policy Goal 4 examines the diversity of programs and allowed graduates of 2-year junior colleges to apply ease of movement among them, whether or not the their credits toward a degree from 4-year colleges and system facilitates skills upgrading by providing universities made junior colleges a stepping stone to information on emerging trends and recognition of academic tertiary education. prior learning, and how well the system is able to adapt to changing skills demand. Results of the SABER-WfD 1990: The system continued to provide multiple benchmarking exercise indicate that Korea progressed pathways for transfer between vocational and general from an emerging level in 1970 to an established level education and remained at an established level of in 1990, and reached an advanced level in 2010. development. During the 1970s and 1980s, employers’ demand for technical skills was increasing. To meet this demand the government’s 1974 revision to the  Foster articulation across National Education Curriculum aimed to promote levels and programs vocational education by increasing the availability of vocational tracks to students in academic high schools. This action scored at an established level in 1970 and Some academic high schools started offering 1990, and reached an advanced level in 2010. vocationally-oriented courses while arrangements Overview 1970 – 2010: This aspect of the system was allowing students to take courses at dedicated already at an established level of development in 1970. vocational schools during their final year of study The system featured standardized procedures for proliferated. However, by the 1980s interest in transferring between vocational and general education vocational education was waning and these programs programs at both the secondary and post-secondary were met with limited enthusiasm from students. levels, creating multiple pathways and relatively few Enrollment in colleges and universities was also rising barriers for students to enter and leave vocational sharply. Efforts were made to encourage vocational education during the course of their studies. The high school students to pursue higher education to introduction of a system of financial incentives and increase the supply of high-level technical skills technical assistance to promote articulation among required by Korea’s increasingly technologically- vocational high schools and polytechnics in the period sophisticated economy. Many vocational high schools leading up to 2010 pulled the system from an started offering college preparatory tracks to gifted established to an advanced level of development. students. This initiative was supported by a system of 1970: The system’s standardized procedures for quotas, instituted in 1978, that mandated that at least transfers between vocational and general programs 10% of four-year colleges’ and universities’ incoming and from the secondary to post-secondary level reflect classes had to be drawn from vocational high schools, an established level of system development. High while a further 30% were to be taken from the junior school students were able to transfer between college system. This program achieved only limited academic and vocational high schools as long as space success, however, and was abandoned five years later. was available, and oftentimes were granted credit for 2010: A system of effective incentives was in place to coursework at their previous institution. There was support robust articulation between secondary and transfer in both directions in 1970 since vocational post-secondary vocational education, the so-called 2+2 education did not suffer from the perception of being a System, whereby curricula for the final two years of second-tier option at this time. In addition to the option vocational high school and for junior college were of transferring to a vocational high school, academic harmonized for selected vocations. Under this system, high school students interested in pursuing a vocational the MOE put in place grants and technical assistance to course of study could opt to take classes at public or bring together instructors from vocational high schools, private vocational education institutions in their final junior college professors, and industry representatives year and use the credit to fulfill graduation to coordinate vocational high school and junior college requirements at their present high school. curricula, with the goal that by minimizing curriculum At the post-secondary level, students were allowed to overlap and creating a common set of teacher transfer between academic and vocation institutions materials, students could progress more seamlessly through a standardized application system that from high school to junior college. An effort with a involved transfer exams, submission of academic similar goal, the Measures for Establishing the New transcripts and interviews. Formal arrangements that Education System, promulgated by the MOE in 1996, SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 30 encouraged junior colleges to provide courses for this void did not exist. Resources available to vocational high school students during their winter and individuals to assess skills gaps and identify training summer breaks. Students who completed these courses and job opportunities, whether public or private, were were granted credit upon enrollment in a participating sparse, meaning that individuals often relied on junior college. personal contacts and training providers for these services. The government did offer training and job  Promote life-long learning placement services to vulnerable populations such as school-leavers and soon-to-be discharged soldiers, This action scored at an emerging level in 1970 and which it supported on an ad hoc basis through the improved to an established level in 1990 and attained provision of funding, instructors, and training an advanced level 2010. materials. Overview 1970 – 2010: The system charted a positive trajectory from 1970, where arrangements to support 1990: Increased and systematic government support recognition of prior learning did not exist and for lifelong learning brought the system to an individuals had to draw primarily on personal established level of development. The MOL opened networks and ad hoc resources to evaluate their skills regional offices in 1981 that provided information to and find jobs, to 2010, which saw the introduction of job seekers and helped match individuals to national, online one-stop-shops for career guidance by appropriate opportunities. These centers benefitted both the MOL and MOE. Support for publicly-funded from the work of the National Employment Information training programs for disadvantaged populations grew Agency, whose core mandate was to provide in formality and magnitude, increasing the scope and information and analysis on the labor market to the accessibility of these programs. regional offices, employers and individuals. By 1990, school-based career guidance was in place to provide 1970: Individuals trying to upgrade or acquire new students with information regarding potential jobs and skills faced considerable barriers. The government had help match graduates with appropriate opportunities. not established a formal system for recognizing The extent of these services was limited, however, and previous training or academic achievement, and non- was usually provided by instructors rather than government organizations such as industry specialized career counselors. associations or training providers that could have filled Box 3: The Academic Credit Bank System Intended Beneficiaries Methods for Credit Accumulation · High school graduates who did not progress to · Completion of Standardized Curriculum post-secondary education · Acquire National Certificate or officially- · Former college or university students who recognized private certificates discontinued their studies · Pass Bachelor's Degree Exam for Self- · College or university graduates who wish to Education or courses for exam exemption commence studies in a different field · Complete a course of study at a credit- · Those wishing to earn formal credits for self- recognized school study and workplace training and experience · Complete training to acquire skills of · Those who have studied at private institutes or important intangible cultural properties junior colleges and wish to transfer into the university system Process for Acquiring a Degree Credit Accumulation Application Process Degree Acquisition Source: Authors’ construction. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 31 Government support for individuals to access training credit for individuals’ non-formal learning and work and upgrade skills throughout their working life had experience. These credits can then be applied toward also increased. By 1990 the MOL had created the earning an Associates or Bachelors degree. Another Vocational Training Management Agency. This innovative program was the Individual Training organization operated public training centers, trained Account (ITA) system, which was established in 2008 instructors and provided consulting services to private and facilitates continuing learning on the part of training providers. The MOL continued its targeted disadvantaged populations by both providing subsidies training programs for members of disadvantaged and documenting and consolidating learning done populations. These efforts were supplemented by the through the program. passage of the major Establishment Decree on Open High Schools in 1973, which created open high schools Korea’s system of public programs for disadvantaged to provide those who had not completed high school and vulnerable populations also grew considerably. For the opportunity to earn a diploma. example, the MOL devoted its efforts to vulnerable groups of people. The public-funded programs included 2010: In the two decades between 1990 and 2010 “Social Enterprises� (2010), Phases 1 and 2 of “The My Korea created a robust, comprehensive and innovative Work for Tomorrow Project for Youth� (2010 and 2011, system for lifelong learning that allows individuals to respectively), “Measure to Support the Self-Reliance of easily leverage prior learning for the acquisition of new the Beneficiaries of the Basic Livelihood Security skills, qualifications and jobs. The Career Information System� (2010), “Wage Protection Measures for Center, established within KRIVET in 1999, provided Construction Workers� (2011), “Comprehensive career guidance services to students, teachers, and Measures for Non-Regular Workers� (2011), the parents. The center initially focused on the provision of introduction of ITA system (2008), and the direct career services including face-to-face, telephone, implementation of “Successful Employment Package� and group services. In more recent years, however, the (2009). introduction of CareerNet, a web-based career information service has made the Center’s services more widely available. KEIS, under the MOL, operates a  Set policies and procedures similar online platform for dissemination of to renew programs employment information and resources called WorkNet. This action scored at a latent level in 1970, progressed to The MOL’s Job Centers provide in-person placement an emerging level in 1990, and reached an established services and employment counseling similar to those level in 2010. provided by KRIVET’s Career Information Center. Overview 1970 – 2010: The introduction, adjustment Korea’s innovative Academic Credit Bank System, and closure of vocational education and training established in 1997 (see Box 3), greatly improved programs have been centralized, tightly-managed individuals’ opportunities to have prior learning processes for the entire period under study. Neither recognized, a relative weakness of the Korean system in vocational schools nor training providers enjoy much previous periods. This system links non-formal flexibility in setting or altering their program offerings. learning with the formal education system by granting Courses and content are instead dictated by national- Box 4: Individual Training Account Under the Individual Training Account (ITA) system, an unemployed person is offered a certain amount of funding with which he or she is free to choose vocational training courses and providers from which to obtain services. Participants have their individual training histories recorded for integrated management. The subsidy of KRW 2 million (USD 1,800) is valid for one year from the date of opening the account as long as 20-40% of the training costs are paid by the beneficiary. Disadvantaged individuals are exempt from the requirement to use personal funds and may be subsidized in excess of KRW 2 million. In 2010, KRW 213 billion (USD 190 million) of the total budget of KRW 226 billion (USD 200 million) was disbursed, while 246,591 people – a number much higher than the projected 117,000 – benefited from the program. Starting from September 2011, the program was expanded to extend eligibility to non-regular workers (up to KRW 2 million per person) so that they may receive systematic training to change jobs. At-risk groups such as self-employed people, North Korean defectors, and foreigners married to Korean citizens were allowed to take specialized vocational training with an exemption from the training costs under the ITA. Source: MOEL. 2011. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 32 level curricula and standards, promulgated by the 1990: The system developed little in the two decades relevant ministry. The increase in the score reflects leading up to 1990. For vocational training, authority improvement in the openness and inclusiveness of over the introduction of programs was given to the ministries’ processes of review and planning. Vocational Training Review Committee within the MOL. However, programs were introduced in the same 1970: The Korean government introduced, adjusted, manner as in 1970, with a similar amount of and closed programs according to its own agenda and inflexibility. at its own initiative. All vocational high schools were required to teach according to the National Education 2010: While schools and training providers gained Curriculum, which was revised by an institutionalized little autonomy over decisions regarding program process with input from the government, industry introduction and closing, the process by which experts and researchers every eight years, on average. authorities made these decisions became more Vocational high schools were, in some instances, able to inclusive, especially for those training programs under implement supplementary courses to respond to local the MOL where authority for making decisions about industrial needs. Applications for such additions to opening and closing training programs was shifted to curriculum were vetted by the regional education the newly-created Council of Employment Policy. This authority. council was chaired by the Minister of Employment and Labor and included approximately 30 employer The arrangement was similar for training programs representatives. The Council adjusted programs every under the MOL, which published the Vocational five years when a new Plan of Vocational Training Training Standards. These detailed standards dictated Competencies Development was adopted. In addition to program offerings in accordance with national WfD industry input, the Council drew heavily upon research priorities. Training providers had to meet strict conducted by research institutes such as KRIVET and requirements in terms of content and were not allowed Korea University of Technology and Education (KUT), to introduce new programs. as well as by individual researchers, in making decisions about the introduction of programs. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 33 Dimension 2 | System Oversight Policy Goal 5 Ensuring Efficiency and Equity in Funding 1970 1990 2010 Policy Goal 5 focuses on the government’s role in During the early part this period, aid and concessional funding WfD, ensuring efficient and effective use of the lending, especially for the construction and expansion available funds, and in fostering partnerships that can of training facilities, played an important role in multiply the resources available for TVET. Results of supplementing the government’s budget for WfD. In the SABER-WFD benchmarking exercise indicate that the early 1970s demand for training was increasing Korea progressed from an emerging level in 1970 and faster than the government was able to construct and 1990 to an established level in 2010. equip training facilities. In response, the MOL decided to take out loans to finance such construction. With the support of the EPB and Ministry of Finance, the MOL  Articulate funding strategy took out long-term loans from the Asian Development Bank (ADB). These loans were disbursed over a three This action scored at an emerging level in 1970 and year period from October 1973 and were used to build 1990 and improved to an advanced level in 2010. five vocational training centers. Another fifteen training centers were subsequently built using loans Overview 1970 – 2010: For the entire period under from the International Bank for Reconstruction and study, the government set funding priorities in Development (IBRD). consultation with industry and provided systematic funding for training institutions supported by detailed 2010: The introduction of annual reviews of system- spending plans. Before 2010, however, these practices wide resource allocation and performance-based were rarely, if ever, reviewed. The introduction of funding for both education and training institutions annual reviews of funding strategy as part of the brought the system to an advanced level of budgeting process drove the system from emerging to development. In education, both high schools and advanced. junior colleges were evaluated according to metrics that took into account administrative processes, 1970: Priorities for funding for both vocational institutional performance and innovation in programs education and training, set by the MOE and the MOL, and practices. The government increased support to respectively, were drawn up in reference to long-term those institutions that performed well. strategic plans laid out by WfD leaders and involved industry input. The government committed to funding Responsibility for funding vocational education was all operational expenses for public vocational training devolved to regional authorities under the 2004 centers as well as both secondary and post-secondary Government Subsidies Improvement Plan. This public technical schools. These institutions submitted resulted in a diversification of the sources of public budget plans to the government, which the government funding, with other ministries beginning to support then approved. However, procedures for relevant parts of the vocational education system. It systematically reviewing and updating strategic also resulted in a sharp reduction in funds made funding priorities had not been established, leaving this available to schools by the MOE, something that was process to be driven more by broad goals than a focus not completely offset by the contributions of other on achieving efficiency in delivery. ministries. 1990: Procedures for funding vocational education and The MOL also increasingly tied funding of training training institutions remained largely unchanged. programs to performance. It also introduced a facility However, the strategic focus of the government, and for supporting innovation in training curricula where therefore funding priorities, had shifted. Special training providers that developed new curricula attention was paid to providing the skills required by pertaining to strategic emerging technologies and the heavy and chemical industries. Short-term industries could submit proposals to MOL, the best of vocational training was also increasingly focused on which were selected for special government support. supporting disadvantaged populations, especially In addition, it continued to provide broad-based unskilled workers and new labor market entrants who support for disadvantaged populations (see Table 10). had not completed secondary education. The system performed well in spite of the lack of regular evaluations of priorities, something which held back the overall level of system development SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 34  Allocate funds to achieve 1970: Priorities identified in longer-term strategies efficient results laid out by the Five Year Plan for the Promotion of Technology and Science and the Five Year Economic This action scored at a latent level in 1970 and 1990 and Development Plan guided the allocation of resources improved to an advanced level in 2010. for vocational education. Similarly, annual surveys conducted by the Vocational Training Division of the Overview 1970 – 2010: The Korean system has been MOL and the Survey of Employed Technical Manpower very good at advocating for alignment between conducted by the EPB served as the basis for strategic WfD priorities and funding allocation for the developing funding plans for vocational training. entire period under study. However, a culture of However, little concern was given to allocating funds to focusing on efficiency in achieving WfD objectives and achieve efficiency in resource use. The system also revising allocation decisions in light of reviews lacked mechanisms to provide timely and reliable developed much more slowly. By 1990, internal feedback on how funding decisions were linked to reviews of the WfD funding allocations had begun, but outcomes. it was not until the most recent period that annual reviews of funding allocations and the criteria on which 1990: A continued lack of procedures for determining they were based took root. how public funding for WfD was linked to outcomes, either on the system or program level, kept the system at a latent level of development. However, by 1990 the Table 10: Training Funded by the MOEL, 2010 MOE had begun conducting internal annual reviews of Target Group Types of Support the WfD funding allocations in preparation for setting the following year's budget. These first steps helped • Skills development training lay the groundwork for the rapid increase in system • Training on paid leave development after 1990. Incumbent Workers • Subsidy for employees’ enrollment in training courses 2010: System development improved markedly with • Loan for skills development the introduction of robust mechanisms for using the results of evaluations and reviews to inform decisions • Consortium for vocational training at about future allocation of public resources for WfD. SME Both the MOL and MOE began using formal reviews of Employees of SMEs • Subsidy for organized study at SMEs program funding to inform decisions about resource • Subsidy for better performance in allocation. This focus on achieving results with core works at SMEs efficiency was especially explicit in the MOL’s approach • Vocational training for the to funding training. For both ministries, the reviews unemployed with work experience used to inform funding decisions were published online. Unemployed Workers • Vocational training for the unemployed without work The findings of reviews and evaluations were taken experience seriously, and appropriate recommendations were implemented swiftly, often within one or two years. Disadvantaged For example, a review conducted by the MOE in the Farmers and • Vocational training for the local mid-2000s recommended that the criteria used to Fishermen; Low- unemployed income Individuals evaluate the performance of junior colleges be made more stringent. As a result the criteria according which Unemployed funding was disbursed were widened significantly to Individuals, Youths consider labor market outcomes of graduates, the rate who do not Progress • Training to foster technicians of return to industry partnerships, and the profiles of to Tertiary • Training for national basic industry both faculty and students, among other items. Education Vulnerable  Foster partnerships • Vocational training for rehabilitation Populations (e.g. This action scored at a latent level in 1970 and moved to North Korean • Vocational training for North Korean defectors an established level in 1990 and 2010. Defectors; Low- income Self- • Vocational training for disadvantaged employed) Overview 1970 – 2010: In 1970, no framework self-employed existed for industry to provide inputs in the WfD Source: Authors’ construction. system or access public resources for training. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 35 Arrangements to promote and facilitate partnerships training opportunities that each school sought. This were established shortly after 1970, pushing the scheme enjoyed the participation of many of Korea’s system from latent to established in less than two flagship conglomerates, such as Samsung and LG in the decades. One major advance was the introduction of a electronics sector. Korea’s innovative Meister High levy system, which created a dedicated fund from Schools also deepened partnerships between individual which the government provided financial resources for firms and schools. These schools, which each aim to training to firms, public and private training provide skilled technicians to a particular industry, institutions, and individuals. By 2010, both the teach curriculum and use testing standards that were technical education and training systems benefitted designed with industry input. Industry also provides from the existence of institutionalized frameworks for extensive internship and training opportunities to encouraging and organizing financial support and field- students and often hire graduates (see Box 5). based training. Box 5: Meister High Schools 1970: While stakeholders provided advice on funding strategy and allocation, no formal framework for In 2010, the Korean government under the leadership of President partnership in funding vocational education and Lee Myung Bak launched a new initiative to establish 21 special vocational high schools that would more effectively meet evolving training was in place. industry needs. With traditional vocational schools still preparing students for relatively simple, lower skilled jobs and the face of a 1990: Revisions to the Industrial Education Promotion strong preference for academic education, Korea faced both a Act in 1973 mandated that vocational high school critical shortage of students with advanced technical skills and students complete field practice as part of their persistent youth unemployment. Meister High Schools aim to graduation requirement. The same year, the MOE address this skills mismatch by cultivating highly skilled technical established the Department of Cooperation between workers who are ready to obtain employment directly upon Schools and Industries to collaborate with firms to graduation. expand the supply of such field-based training Strong partnerships with employers ensure that industry input opportunities. One example of early success was the permeates all aspects of Meister High Schools. Industry experts partnership established between the Korean Electric participate in curriculum revision and serve as principals and Power Company and the Sudo Electric Technical High instructors of several Meister High Schools. Other features include School. In addition to sending students for on-site the provision of in-house training programs for students and training, the school also received financial support and instructors, as well as equipment donations. This new initiative is equipment for training students on campus. The already showing signs of success: Partnerships have been forged company, in turn, was able to screen potential with a total of 1,330 partner companies as of July 2011 and of the employees, often offering the most promising students 3,600 current Meister High School juniors in 2012, over 50% have jobs after graduation. already accepted offers from industry partners for employment following their graduation. A levy system to encourage firms to provide training to Meister High Schools: Features and Student Benefits incumbent workers was established in 1976. This fund provided incentives to firms to train workers while creating a pool of dedicated resources that the government could deploy to support vocational training. Companies with more than 300 employees (this number was reduced to 200 in 1989 and 150 in 1992) were required to provide in-company training or pay into the Vocational Training Promotion Fund. The government used this fund to expand training opportunities by contributing financial resources to firms that train employees, public and private training institutions, and individuals. 2010: The system of partnerships in vocational education developed into an institutionalized network open to all firms interested in providing training inputs with the introduction of MOE’s One Firm, One School policy. Under this framework, schools and firms submitted applications to the MOE, which then Source: Kim, Yung-chul, and Young-gon Kim. 2012.; Park, Dong-Yeol. 2011. matched schools and firms based on the resources and SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 36 Dimension 2 | System Oversight Policy Goal 6 Assuring Relevant and Reliable Standards 1970 1990 2010 Policy Goal 6 is concerned with the quality of Education Curriculum was revised for the fifth time in accreditation standards for training providers, the the late 1980s by the MOE in consultation with strength of the skills testing and certification regime, stakeholders including professors and instructors in and the quality of procedures for assuring the the institutions as well as representatives of employers credibility of accreditation and skills certification. The and labor. The number of standards for vocational SABER-WfD benchmarking exercise indicates that with training had proliferated, growing from 139 items in respect to Policy Goal 6 Korea progressed from an 1969 to 360 items pertaining to curricula, duration of emerging level in 1970 to an established level in 1990 training, facilities and equipment by 1990. to an advanced level in 2010. 2010: After the seventh revision of the National Education Curriculum in 1997, the government  Specify accreditation standards adopted an ad hoc schedule of revision and adjustment to National Education Curriculum. This decision was This action scored at an emerging level in 1970, reached taken to allow more flexibility in light of Korea’s rapidly an established level in 1990 and an advanced level in developing economy. There was a period of gestation 2010. while the government deliberated how this was to be accomplished. Following this shift, the Curriculum Overview 1970 – 2010: Ensuring that providers met began to be reviewed both internally and by minimum standards of quality was an important policy independent parties. The first revision of the of the Korean government. Thus, from the earliest year Curriculum under this new regime was released in of the period under study, funding for all vocational 2007. schools and training institutions was made conditional on accreditation. The improvement in score between  Strengthen skills testing and 1970 and 2010 reflects a strengthening commitment by the government to keep standards relevant to the certification economic environment and, accordingly, the increasing This action scored at an emerging level in 1970 and frequency of reviews. reached an advanced level in 1990 and 2010. 1970: The National Education Curriculum, issued in Overview 1970 – 2010: Korea had instituted practical 1963 by the MOE, specified standards for content, skills testing in several occupations before 1970, but it facilities and equipment for vocational high schools. All was not until the passage of the National Technical vocational high schools, whether public or private, Qualifications Act in 1973 that a comprehensive system were required to teach according to this curriculum was put in place. By 1990, it had developed into a and meet its concomitant standards in order to remain world class practical skills testing system reflecting in operation. While the curriculum was reviewed by the global best practices with respect to content, testing ministry on a scheduled basis, reviews were very procedures, use of ICT and protocols for revising infrequent. standards to match changes in economic structure. The MOL issued, reviewed, and adjusted the standards 1970: Practical skills testing for 15 occupations for for vocational training in consultation with which standards could be easily adapted from foreign representatives of teachers groups, industry and systems was established by the Vocational Training Act academia. The Vocational Training Standards were of 1967 and implemented the following year. The reviewed and adjusted on an ad hoc basis, often in government provided training materials aligned to response to criticism from employers and training standardized competencies for these 15 occupations. It providers. These standards applied to all public also began work on a more comprehensive system for training providers and all non-state providers receiving testing, which it introduced in 1973. public funding. 1990: The passage of the National Technical 1990: The structure of the system changed little, Qualifications Act laid the foundation for the though by this time standards for both educational development of a national testing system with institutions and training providers had been revised standardized testing criteria focusing on both theory several times to keep them relevant to Korea’s rapidly and practice for most occupations. By 1990, a total of changing economic environment. The National 717 qualifications focusing on the engineer and SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 37 craftsmen division (682 qualifications) and service and testing and certification. By 2010, the testing system administrative division (35 qualifications) existed. The made extensive use of ICT. A centralized, online test MOL prioritized skills testing and certification for bank was maintained by HRD Services of Korea. In occupations in the key sectors, regularly updating or addition, Q-Net, a comprehensive online database of eliminating outdated qualifications to keep testing in skills qualifications and certifications, was launched in line with the skills demanded by industry. 2001. This database consolidated information on the types and levels of certification, statistics on aggregated Testing was administered and qualifications were test taker performance and was used to notify awarded by an independent third party, the Vocational candidates of their results. Training Management Agency. The government provided training materials aligned to standardized These procedures for skills certification have made a competencies to public training institutions and, by substantial contribution to workforce development in 1990, had adopted computerized scoring. Korea. However, ensuring the relevance of certificates to a dynamic labor market is a challenge. In this vein, it 2010: The system remained comprehensive and is worth noting that even in this advanced system, effective, retaining its advanced score. As of 2010, a certifications in some fields are not consistently used as total of 512 qualifications focusing on the technical and a criterion for hiring or promotion at companies. functional division (481 qualifications) and administrative division (31 qualifications) existed. In  Assure credibility of addition, the National Competency Standards (NCS) accreditation and of skills system, whose development began in 2002, sought to define and standardize the knowledge, skills and certification attitudes necessary to achieve different levels of This action scored at established levels in 1970, 1990, competence for various occupations. Between 2002 and 2010. and 2010, 250 occupational standards were developed (see Figure 16). These served as the basis for testing Overview 1970 – 2010: Procedures for ensuring the procedures. The MOL prioritized skills testing and quality and credibility of accreditation and skills testing certification for occupations in the key and emerging have been areas of consistent performance in the Korea sectors, namely those of electronics, ICT, and WfD system. The requirement that all vocational high environmental engineering. The Vocational Training schools and vocational training providers seeking to Management Authority, renamed HRD Services of receive public funding obtain accreditation has existed Korea in 2006, took over responsibility for overseeing since before 1970. The government has also taken an active role in managing skills testing centers to ensure Figure 16: National Competency Standards Developed by consistent and credible testing procedures for the Year, 2002 to 2010 entire period. 250 1970: Korea’s established system already featured sound mechanisms for assuring the quality and credibility of accreditation and testing. Vocational 200 education and training providers that received public funding were required to obtain accreditation. For 150 vocational high schools, the requirements for accreditation were laid out in the 1963 National Education Curriculum. Similarly, all training providers 100 who sought public funding were required to follow the 51 Vocational Training Standards, set by the MOL with 50 41 38 input from industry representatives and experts in 32 20 23 24 vocational training. In-company training institutions 12 9 seeking public funding were also required to obtain 0 authorization. Companies seeking to establish on-the- job training (OJT) programs were required to submit the information pertaining to budget, curricula, training Total Number of National Competency Standards methods, instructors and equipment, and duration and purpose of training, which were reviewed by the MOL. Number of National Competency Standards Developed Standards for practical skills testing were established Source: Kim, Sang-Jin. 2010. by the MOL with input from stakeholders including SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 38 employers, experts and teachers. Skills testing was the improve testing standards. In the early 2000s, both responsibility of the MOL. All testing centers were KRIVET and Korea Vocational Training Management either supervised or directly managed by the MOL and Agency (which became HRD Services of Korea in 2006) were required to meet standards pertaining to facilities, began developing new standards for skill certification equipment, protocols for testing. in parallel. KRIVET’s Korea Skills Standards (KSS) were eventually merged with HRD Services of Korea’s 1990: The structure of the system remained relatively National Occupational Standards (NOS) system to form unchanged in 1990. All institutions seeking public the NCS, and their development was continued by HRD funds were still required to comply with stringent and Korea. The process of developing the National comprehensive accreditations standards. Competency Standards (NCS) involved in-depth Responsibility for supervising and managing testing analysis of the occupational structure of the economy, centers had been passed to the Vocational Training Korea’s system for industrial classifications, the Management Agency, which continued to play a role designation of levels of certification and training similar to that of the MOL in 1970. content. This process resulted in a substantial reorganization of the qualification system for skills. 2010: The procedures for and terms of accreditation of WfD institutions remained unchanged, while the government undertook a major initiative to update and SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 39 Detailed Results Dimension 3 | Service Delivery13 Policy Goal 7 Fostering Relevance in Training Programs Policy Goal 8 Incentivizing Excellence in Training Provision Policy Goal 9 Enhancing Accountability for Results 13 The composite scores shown in the dial are the same as the categorical ratings shown on the cover of this report. They have been converted using the rules indicated in footnote 4 on page 6. The categorical ratings conform to the standard presentaion of results in the SABER intiative, while the presentation in the dials reveals more detail. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 40 Dimension 3 | Service Delivery Policy Goal 7 Fostering Relevance in Training Programs 1970 1990 2010 Policy Goal 7 is concerned with the strengthening of 1990: An enhanced Industrial Education Promotion Act training providers’ linkages with industry and research supported by several institutionalized bodies to institutions, the integration of industry inputs into the promote and guide collaboration helped create an design of training programs, and provisions for established system. In 1973, participation in work- enhancing the competence of administrators and based training became a requirement for vocational instructors in training institutions. Results of the high school students. The establishment of the SABER-WfD benchmarking exercise indicate that Korea Department of Cooperation Between Schools and progressed from an emerging level in 1970 to an Industries in the MOE helped schools fulfill this new established level in 1990 and 2010. obligation by encouraging companies to host students. Links between junior colleges and industry, while not subject to the same legal mandate, also proliferated  Link training, industry, and during the 1970s and 1980s. For junior colleges, these research institutions linkages were especially important for developing This action scored at an emerging level in 1970, an curriculum. Both high schools and junior colleges established level in 1990 and reached an advanced benefitted from donations of old industry equipment level in 2010. and manufacturer training on the use of new equipment. Similarly, both vocational high schools and Overview 1970 – 2010: Korea enjoyed steady junior colleges enjoyed a deepening informal progress over the forty years under study. While relationship with KEDI. This relationship was legislation to facilitate formal links between TVET symbiotic: schools and colleges benefitted from the providers and industry was put in place well before application of KEDI research on curriculum design and 1970, links were slow to form in practice. Progress pedagogy while KEDI researchers gained access to occurred first in linkages between vocational schools institutional data. and industry. Linkages between vocational training providers and industry, and links with research In terms of vocational training, institutions benefitted institutions were slower to form. Connections became from a formal relationship with the Vocational Training more robust, widespread and institutionalized as time Research Institute. This relationship, mediated through progressed, yielding by 2010 an advanced network that the institute’s host, the MOL, resulted in significant encompassed curriculum design, internship and work- shifts in curriculum and an increase in the variety of based learning programs, training for instructors and occupational training offered. Tracks available to donation of old industry equipment. students varied at the regional level, with the Vocational Training Research Institute recommending 1970: The Industrial Education Promotion Act of 1963 programs to fit local industrial needs. The institute also created a legal framework for formal links between set guidelines for programs at the national level in vocational schools and industry, but in 1970 response to national economic opportunities. For participation remained limited, reflecting a system that example, in preparation for the 1986 Asian Games and was still emerging. This act, which grew out of an 1988 Olympic games in Seoul, the institute interest in government to promote both work-based recommended the national expansion of programs for training for students and industry-educational traditional artwork and crafts. institution collaboration, applied to both high schools and junior colleges. To guide collaboration, the MOE By contrast, collaboration with industry remained less established and distributed guidelines on finding formal and less influential for institutions under the appropriate partners to each vocational high school MOL, though managers of training institutions did every year. While there were some notable occasionally consult with industry to determine partnerships among vocational training institutions training needs. One notable exception was skills under the MOL and industry, the MOL provided no development of instructors, where there was formal support and guidance, and as a result links were considerable collaboration between vocational training informal and much less common. Links with research institutions and industry, and the government actively institutions did not exist, either formally or informally, encouraged regular work-based training. for institutions under either ministry. 2010: The introduction of several cutting-edge forms of collaboration in vocational secondary education, along SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 41 with a deepening of collaboration across the board, Box 6: The Korea University of Technology and brought the system to an advanced level of Education Bridge Model development. In 1994, Korea introduced a 2+1 system The Korea University of Technology and Education (KUT) Bridge in some vocational high schools, which provided Model comprises a 3-way academia-industry partnership students with an opportunity to spend their final year involving a major enterprise (ME), its partner SMEs, and KUT. participating in on-the-job training at a relevant This innovative model is exemplified through KUT’s Employee industry site. This was followed by legislation in 2003 Vocational Education Program, which offers short-term courses that allowed firms to customize schools curricula to to employees of participating firms. With MEs constantly suit their skills needs in exchange for a formal pushing the technological and innovation frontiers, the commitment to a hire a certain number of graduates, university acts as a bridge to reduce technology gaps between and that set the stage for the creation of the first MEs and SMEs, and increase SME participation in training. This Meister High School in 2010 (see Box 5 on page 36). arrangement also improves while improving the relevance of KUT’s programs. Formal cooperation between junior colleges and industry has resulted in significant collaboration in The first “bridge� was established with Samsung Electronics, its terms of industry internships and training for students, subcontractors, and KUT in 2006. Samsung and KUT industry training for instructors, donation of old collaborated to build the Advanced Technology Education industry equipment to training providers, and Center and jointly conducted demand surveys to develop collaboration on industry-commissioned projects. relevant program curricula. Samsung contributes technical knowledge, equipment, and industry experts to co-teach Collaboration between vocational training institutions courses. Samsung’s subcontractors contribute employees to be and industry became more regular and more formal, trained in Samsung’s latest technology, and KUT provides with industry serving as an active partner in setting training facilities and operates the center. All parties also benefit from the partnership: Samsung’s subcontractors are contents and programs based on their own skills needs. better able meet its standards, the SMEs enjoy strengthened As in 1990, industry continued to provide training ties with Samsung, and KUT gains opportunities to co-teach opportunities to instructors as well as equipment. courses with Samsung’s experts. The Bridge Model’s success has led to its expanded application across 11 universities and One innovative advance in the area of continuing participation by 45 MEs and 2,268 SMEs. vocational training in this period was Korea’s consortium model for encouraging employee training Source: Lee, Wooyoung, Jinsoo Seol and Jinwoo Kim. 2011. in SMEs, known as the HRD Ability Magnified Program. Under (CHAMP), this program, a large company, public  Design training with training provider, employers’ organization, university, industry inputs or some combination therein could establish a training consortium to train workers at relevant SMEs. The SME This action scored at an emerging level in 1970 and would gain access to its partner’s facilities or reached an established level in 1990 and 2010. equipment for training purposes and the consortium Overview 1970 – 2010: Industry has always been well would receive a subsidy equivalent to the costs of the represented in setting national strategies, but its use of training facilities or equipment, remunerations influence has not always permeated much below this for training personnel and other operating costs. This level. Before the last decade, industry input into the program has been continuously expanded since its process of prioritizing and designing training programs introduction in 2003. In 2010, it had a budget of KRW was most often informal and advisory in nature. The 73.7 billion (USD 65 million), allowing 106,000 SMEs to decision to give industry representatives an active role provide training to 231,000 workers. The Korean in setting curriculum and student assessment Bridge Model, pioneered by Samsung and KUT, is a standards for Meister High Schools was a considerable notable example of such a consortium program (see advancement in a trend of increasingly close Box 6). collaboration between schools and industry that had developed during the most recent period under study. During the period between 1990 and 2010 both the HRD Research Center within KUT and KRIVET acted as 1970: The system was emerging, reflecting the fact that active research partners of vocational training industry played an advisory role in identifying, institutions. KRIVET also partnered with vocational prioritizing, and designing publicly-funded programs in education institutions, using its research to suggest vocational high schools and junior colleges through the changes to courses, curriculum and pedagogy. formal process of developing the National Education Curriculum. Experts from industry also had an advisory role in the design of program curricula through informal interaction with school management. The SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 42 arrangements were similar for vocational training. vocational education under the MOE and vocational Participation in the Vocational Training Review training under the MOL. As government employees, Committee within the MOL provided industry they were appointed by the ministry and enjoyed representatives an advisory role in the process of permanent contracts. The MOE exercised a rotation developing the National Vocational Training Plan and scheme, where heads and instructors were required to prioritizing publicly-funded training programs. move to a different institution every three to five years. Moreover, industry practitioners had an advisory role Since positions were awarded through a competitive in the specification of training equipment and materials process that took into the account individuals’ for publicly-funded programs. qualifications, performance in supplementary training courses and professional track record, this 1990: Industry retained an advisory role with respect arrangement allowed staffing to be tied to performance. to the governance of TVET institutions. However, the However, the system in 1970 was still quite rigid and extent of industry participation, and the number of seniority-based. Staff rotation was less regular among institutions that benefitted from industry input institutions overseen by the MOL, with heads given increased slightly, tipping the system from an emerging time-limited posts of varying duration and no rotation to an established level of system development. scheme in place for instructors. 2010: The introduction of Meister High Schools gave Heads and instructors in both ministries were industry a decision-making role in prioritizing relatively well-educated when compared to the general programs and determining curriculum. Designed population. This was in part due to a system of specifically to provide a curriculum customized to a licensing to ensure minimum levels of qualification certain industry’s needs, industry enjoyed decision- among staff. According to the Public Education Officials making power over these institutions’ development and Act of 1953, principals of all vocational high schools operation. Meister High Schools have a Curriculum were required to hold a principal license, which Committee on which seats are reserved for industry required at least a Bachelors degree from a four-year representatives. In addition, experts from the relevant college, minimum years of teaching experience and industry or industries are given reserved spots on the passing an in-service training exam. Instructors were schools’ Skills Qualification Committees, and thus play a also required to hold a degree or to have completed a pivotal role in ensuring that graduation requirements significant amount of coursework toward such a degree align with industry needs. Industry retained an active, from a four-year teaching college, or have earned a albeit advisory role in setting priorities and curriculum degree from one of 166 academic departments within for other vocational high schools as well. While also 26 universities designated by the MOE. This still advisory in nature, industry’s influence over junior requirement held for instructors in junior colleges as college curriculum increased, with representatives well, but these instructors were also subject to a consistently given places at the table when new requirement of having had two years of research programs or departments were being introduced or the experience. Instructors in vocational training providers curriculum of existing programs was being reviewed. were required to have a license, which was obtained by Industry input into vocational training programs stayed completing a course and passing an examination, much the same as in previous periods. though the requirement to take the exam was waived for skilled individuals in sought-after trades.  Improve competence of 1990: Practices for the recruitment and retention of administrators and instructors staff remained largely as they were in 1970. There had This action scored at an emerging level in 1970 and been few instances of review of these standards in the 1990, and progress to an established level in 2010. interim period, and the system remained at an emerging level of development. Overview 1970 – 2010: Procedures for recruitment and incentivizing excellence among teachers and heads As in 1970, staff already in the system had ample access of training providers was fettered by a rigid, seniority- to professional development opportunities. Instructors based system of promotion between 1970 and 1990. in vocational high schools participated in practice- The limited introduction of several innovative oriented in-service training for several weeks during measures for recruitment and retention improved the summer and winter breaks, and were required to level of system development in the most recent period. participate in week-long to month-long professional development seminars on an annual basis. Similarly, 1970: Recruitment and retention of heads and the Korea Council for College Education (established in instructors was handled in much the same way for both SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 43 1979) organized in-service training programs of hired under this system were initially given a four-year varying durations for instructors of junior colleges. contract, with the option for renewal based on performance. Individuals were evaluated through Instructors and heads of training providers under the formal reviews that took into account the opinions of MOL also needed to fulfill annual training requirements. teachers, superintendents and parents. These In addition, the Vocational Training Management measures were supplemented by a system of Agency organized site visits and opportunities to earn performance-based bonuses that rewarded successful new qualifications for instructors. They could also opt principals. to take one- to two-year sabbaticals for extended stays in advanced industrial countries such as West Germany, The Teacher Competency Development system Japan and Italy. These visits not only allowed introduced a similar level of rigor into the evaluation of instructors to gain proficiency with advanced vocational high school instructors’ performance. Under technology, but also facilitated the diffusion of such this system, instructors underwent annual reviews that technology in Korea. incorporated input from colleagues, students and parents. 2010: Two major policy reforms in the governance of vocational high schools, both introduced in 2010, Professional development programs for instructors in pushed the system to an established level of both vocational education and training institutions, and development. In 2010, the MOE opened a new system incentives to participate in them, became more robust. for the recruitment of heads of vocational high schools These programs aimed to increase the technical that operated in parallel to the traditional procedures. competency of instructors, in particular with regard to Under this new Job Posting and Bidding System, new and emerging technologies. Unlike previous positions were advertised openly and all instructors periods, routine evaluations that included participant with a minimum of twenty years of teaching experience, feedback on program content, facilities, and vice-principals with a combined fifteen years of implementation were conducted. teaching and administrative experience, and individuals working in industry with at least three Instructors in public training institutions under the years of relevant experience could apply. Those with MOL had to be licensed according to procedures laid industry experience were deemed to be particularly out in the Framework Act on Vocational Training. To desirable candidates due to the fact that their previous acquire a vocational training teacher license, which was experience allowed them to use their network to find required to become an instructor, candidates must hold employment opportunities for graduates and solicit a technical qualification, complete a vocational teacher industry feedback and advice. Salaries for such training license courses and pass the vocational individuals were allowed to deviate from the training teacher examination. The HRD Institute within established government pay scale to be competitive KUT provided in-service training programs for with market rates in the relevant industry. Individuals instructors to acquire new skills and qualifications. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 44 Dimension 3 | Service Delivery Incentivizing Excellence in Training Policy Goal 8 Provision 1970 1990 2010 Policy Goal 8 examines the diversity of training state providers and helped bring the system to an provision and the incentives to encourage private established level of development. Permission to providers to meet WfD standards and to motivate operate was awarded according to the same public institutions to respond to the evolving demand procedures in place in 1970 for both vocational for skills. The SABER-WfD benchmarking exercise education and vocational training institutions. indicates that Korea progressed from a latent level in 1970, to an emerging level in 1990 and 2010. 2010: As the most pressing challenges in WfD shifted from providing initial education to continuing and on- the-job training, the MOL promulgated the Worker’s  Promote diversity in training Skills Development Act in 2004. With the introduction provision of the JSDP, authorized by this act, training programs This action scored at an emerging level in 1970 and were diversified from their previous focus on reached an established level in 1990 and 2010. manufacturing to cover all industries and occupational areas. In addition, private training providers were Overview 1970 – 2010: Non-state education and allowed to compete with public providers for funding training providers, once established, are supported and through the JSDP, increasing the amount of funding run in the same manner as public providers. This available to encourage the entry of private providers extensive support has created ample incentive for and the competitive pressure faced by public and private providers to enter the market. In 1970, only private providers alike. non-profit institutions were allowed to operate. A relaxation of these restrictions in 1973 created a larger,  Incentivize private providers more diverse field of providers and helped the system reach an established level of development. to meet WfD standards This action scored at a latent level in 1970 and 1990 and 1970: The emerging system featured limited non-state improved to an emerging level in 2010. provider participation. However, by 1970 Korea had put in place a legal framework that facilitated the entry Overview 1970 – 2010: The Korean system is of non-state providers. Not-for-profit, non-state governed by standards that apply to all institutions, institutions seeking to offer pre-employment vocational regardless of whether they are public or private. In the education could do so by obtaining legal status as an midst of rapid, state-led industrialization, Korea made a education foundation and applying for a license to open strategic decision to govern the system through a school. These schools, while owned by a private entity system-wide standards for entry as opposed to and financed in part by private contributions, also packages of incentives targeted at institutions. This received substantial government funding. They were coincided with Korea’s focus on WfD as a tool to subject to the same government supervision and support economic development and may have reflected oversight, were authorized to issue the same diplomas, a recognition that a system of autonomous institutions were eligible for the same tax incentives and guided by incentives could be unwieldy in an government grants, and were allowed to collect student environment characterized by dynamic change and fees in the same way. limited managerial and oversight capacity. This arrangement kept scores for this Policy Action low for The arrangement for non-state training providers was 1970 and 1990. In the most recent period, changes in similar. Non-profit organizations were allowed to offer economic structure, increasing bureaucratic capability training programs with permission from the MOL. and the availability of ICT solutions have made a Permission was obtained by showing evidence of system of incentives and censure more desirable and meeting the established Vocational Training Standards easier to implement. that were used to govern public institutions. Firms wishing to establish their own in-house training 1970: No specific system of incentives existed. The facilities received permission to operate through the requirement that providers meet national standards to same procedures. operate, while helping to promote minimum standards of performance, was too general to provide specific 1990: The MOL’s 1973 decision to allow for-profit incentives for excellence. The government neither institutions to offer TVET broadened the field of non- SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 45 evaluated how these standards influenced provider graduates and employer satisfaction. This transition is performance nor consistently audited providers. reflected in the increase in score for 2010. However, 1990: The government paid limited attention to this the emerging score indicates that Korea continues to Policy Action and the system retained an organization use alternative channels to ensure good practice. similar to 1970. While vocational education institutions were required to submit reports either 1970: While the government was concerned with the once or twice annually that were reviewed by regional WfD system as whole providing enough skilled workers education authorities, these were not used to set to support economic development, mechanisms to targets or rigorously evaluate performance. promote sensitivity to industry demand for skills or to incentivize performance among individual institutions 2010: The system improved as a result of more pointed did not exist. Both the MOL and MOE were interested performance incentives and, in the case of vocational in the number of trainees so as to be able to match the training institutions under the MOL, regular number of employees needed for specific occupations, performance reviews. The MOE began publicly but no explicit targets were given to institutions. recognizing vocational high schools and junior colleges Nonetheless, the WfD authorities had a sense of which for exemplary overall performance and for the schools and training centers were performing well, and introduction of innovative or successful extracurricular considerable esteem was accorded to exemplary programs. This bolstered and formalized the esteem institutions. This system of esteem and informal garnered by successful institutions, something which recognition of excellence provided strong, if not served as a more informal motivation for success in rigorous, incentives to meet and exceed minimum previous periods. standards for quality. Successful and innovative training providers under the 1990: The Korean approach to monitoring and MOL were also given awards. In addition to this incentivizing performance changed little. Steps to measure, the MOL began implementing periodic audits promote demand-driven institutions were not taken and revoking the licenses of institutions found to be and the system remained latent. As in 1970, no specific deficient. The MOL benefitted from scrutiny of its targets were set and no formal evaluations of provider training standards by KRIVET, which began an performance were conducted. initiative to review the efficacy of performance incentives for vocational training providers in 2007. 2010: Increased attention to institutions’ performance by both the MOL and MOE prompted more pointed  Motivate public institutions to measures to improve institutional responsiveness to respond to demand for skills demand and brought the system to an emerging level of This action scored at a latent level in 1970 and 1990 and development. Both ministries began to focus more reached an emerging level in 2010. explicitly on indicators such as graduation rates, job placement rates, employer satisfaction, and student Overview 1970 – 2010: Korea opted to follow a path satisfaction. Performance along these indicators was of state-led industrialization and did not make a one input into a system of regular reviews of provider sustained effort to increase individual institutions’ performance. These reviews formed the basis for a sensitivity to industry’s skills needs until 2010. During number of steps meant to incentivize performance, early stages of this development there was fear that such as the previously-mentioned accolades for well responding to current skills demand could impede the performing institutions as well as the provision of pursuit of dynamic comparative advantage, and thus increased technical assistance for and, if necessary, the government took a very active role in setting closure of struggling institutions. The provision of curriculum and managing providers in accordance to discretionary training grants based, in part, on its Five-Year Development Plans. The government evaluation scores also helped incentivize performance. stepped back a bit after 1990, giving individual In addition, the introduction of the JSDP and the institutions more autonomy to respond to industry increased competition for public funding that it created demand. Consequently, it began measuring served as a mechanism for promoting the provision of institutional performance by setting targets for high quality, market relevant training services by public outcome indicators such as labor market outcomes of providers. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 46 Dimension 3 | Service Delivery Policy Goal 9 Enhancing Accountability for Results 1970 1990 2010 Policy Goal 9 is concerned with systemic monitoring and long-term future skills assessments, which and evaluation of the demand for skills, procedures for included enterprise surveys (see Box 7). In 2010, data collection and management, and level of attention KRIVET conducted a comprehensive analysis of to outcomes, efficiency and innovation in service vocational skills demands to promote more demand- delivery. Results of the SABER-WFD benchmarking driven training by vocational high schools at the behest exercise indicate that Korea progressed from an of the MOE. Sponsored by the MOL, KRIVET also emerging level in 1970 and 1990 to an advanced level conducted a survey of the skills demanded by emerging in 2010. green industries. The MOL conducted comprehensive annual, economy-wide enterprise surveys and  Strengthen monitoring and sponsored smaller-scale enterprise surveys conducted by KRIVET on an ad hoc basis. These data, along with evaluation the resulting reports, were made available on the This action scored at an established level in 1970 and relevant ministry’s website. In addition, Korea 1990 and improved to an advanced level in 2010. currently maintains two comprehensive websites with data and research on workforce development: HRD-Net Overview 1970 – 2010: Extensive data collection and and NHRD-Net, administered by the MOL and MOE, analysis has been a cornerstone of the Korean respectively. macroeconomic planning process from the 1960s, with considerable effort focused on measuring and Box 7: Examples of Surveys of Labor Demand projecting skills demand in an attempt to align WfD policies with economic development goals. Korea Labor Cost of Enterprise Survey (MOEL) improved on its already good practices in the most Measure labor demand to support recent period by both increasing the amount of data Purpose measures to try to address mismatches gathered and consolidating it into publicly-available national websites. A sample of 32,990 workplaces with 5 or Coverage more permanent employees 1970: The EPB instituted labor force surveys to monitor and evaluate the demand and supply of skills. Frequency Bi-annually The MOL employed these surveys, along with the Survey of Employed Technical Manpower conducted Current number of employees, number of Survey job openings, number of filled job by the EPB and annual surveys of the supply of skills items openings, number of unfilled job openings,, in economically important and technology-intensive reason for unfilled job openings industries conducted by the MOL’s own Vocational Training Division, to monitor and evaluate the demand and supply of skills. Both the MOL and EPB published Labor Force Survey of Establishments collected data relating to WfD publicly. (Statistics Korea) 1990: Monitoring skills demand remained a routine Provide basic data needed to analyze and integral part of the WfD planning process. Both the Purpose employment trends and labor conditions MOL and MOE began to issue reports on an ad hoc basis in support of policy development based on the data collected. Both ministries also 28,000 sampled establishments with one continued to rely on the labor force surveys conducted employee or more across all industries by the Office for National Statistics (previously the EPB) Coverage excluding the agriculture, fisheries and and the MOL continued to conduct annual surveys to forestry sectors supplement these efforts. Frequency Monthly 2010: Both the MOL and MOE collected and employed data more intensively than in previous periods. This, Number of workers, number of job along with the data’s consolidation in two national Survey vacancies, number of new hires and websites, made the Korean system among the best in items terminations, wages, working hours the world with respect to this Policy Action. KEIS, Source: MOEL; Statistics Korea. jointly sponsored by the MOL and MOE, conducted mid- SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 47 the licenses of institutions that made untimely,  Specify reporting requirements inaccurate or inconsistent reports. by training institutions  Increase focus on outcomes, This action scored at an emerging level in 1970 and efficiency and innovation 1990 and moved to an advanced level 2010. This action scored at a latent level in 1970 and 1990 and Overview 1970 – 2010: Institutional and outcome moved to an advanced level in 2010. data have been collected from most TVET providers for the entire period under study and non-reporting has Overview 1970 – 2010: This aspect of the system did been lightly penalized. Penalties for non-compliance not develop until the last two decades. While large stiffened in the most recent period, coinciding with quantities of data had been collected and organized these data’s more intensive use by the WfD authorities during the previous periods, it was neither used to to both measure system performance and improve it by incentivize provider performance nor intensively allocating discretionary funds to the best performing mined to uncover areas of a good practice or schools. opportunities for improvement. This practice changed dramatically after 1990. Both the MOL and MOE began 1970: All schools and training providers in receipt of using the data they were already collecting much more public funds were required to comply with specified intensively to monitor and incentivize provider reporting procedures established by the government. performance and to identify opportunities for Data that were required to be reported included improving the quality and efficiency of the WfD system. administrative statistics such as enrolment, staffing, budget, graduation rates and the labor market 1970: The data collected from TVET institutions were outcomes of graduates. While providers were required not accompanied by performance targets or used to to submit these data, the relevant ministries did not set monitor and evaluate provider performance. While the specific targets for performance. Nonetheless, the government did identify institutions with consistent submitted data were reviewed, with providers being good practice, this was often based on less rigorous informally notified of errors or inconsistencies, and feedback and was more linked to providers’ success in were catalogued in central databases. These databases, implementing established plans and curriculum rather however, were not open to the public. than to practices or innovations that improved efficiency and outcomes. 1990: The system retained practices similar to those in place in 1970. All providers were still required to 1990: A culture of rigorous monitoring and evaluation submit basic data but, as in 1970, penalties were not had not yet developed in 1990. Data collected by the regularly assessed for non-compliance and the data MOL and MOE lay largely untapped and the system were not extensively used for monitoring provider remained latent. performance or incentivizing improvement. 2010: Both the MOL and MOE put in place robust, 2010: The MOE began penalizing schools for integrated systems for monitoring performance, submitting late or inaccurate data with lower generating insights from cases of good practice, and evaluation scores. It also began using the information introducing appropriate system-wide reform. submitted by public and private vocational high schools Sponsored by the MOE, the Regional Education and junior colleges to determine future funding Authorities conducted assessments of vocational high allocation and eligibility to participate in government- schools every three years. The Korean Council for funded projects. These data were maintained in a College Education performed a similar function with centralized database that, by 2010, had been put online respect to junior colleges. These assessments, and opened to the public. supplemented by occasional, special-purpose research commissioned by the MOE and KRIVET, served as the Polytechnics funded by the MOL were required to basis for both tying funding to institutional submit administrative data, graduation statistics, job performance and for identifying, disseminating and placement rates and wage data. KRIVET collected client institutionalizing good practices. feedback on private institutions receiving public funding and also evaluated such institutions based on The Board of Polytechnics funded by MOL annually criteria such as facilities, equipment, instructors, evaluated and ranked all polytechnics on the basis of curricula, and the employment outcomes of graduates. institutional performance. Sponsored by the MOL, The MOL assessed fines and, in serious cases, withdrew KRIVET also conducted annual assessments of private training institutions receiving public funding and took SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 48 measures to identify and disseminate examples of good the findings to funnel funding to well-performing practice by hosting conferences. The MOL incorporated institutions and programs. these practices into new system-wide reforms and used SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 49 Annex 1 | Analytical Framework of SABER-WfD Dimension 1: Strategic Framework Aligning WfD to national goals for productivity, growth and poverty reduction Policy Goal 1: Articulating a strategic direction for WfD Policy Action 1: Advocate for WfD as a priority for economic development Policy Action 2: Evaluate economic prospects and its implications for skills Policy Action 3: Develop policies to align skills demand and supply Policy Goal 2: Prioritizing a demand-led approach to WfD Policy Action 4: Promote demand-driven approach Policy Action 5: Strengthen firms’ demand for skills to improve productivity Policy Action 6: Address critical challenges in the future supply of skills Policy Goal 3: Strengthen critical coordination Policy Action 7: Ensure coherence of key strategic WfD priorities Policy Action 8: Institutionalize WfD roles and responsibilities Policy Action 9: Facilitate interaction among all WfD stakeholders Dimension 2: System Oversight Governing the system to achieve desired goals Policy Goal 4: Diversifying pathways for skills acquisition Policy Action 10: Foster articulation across levels and programs Policy Action 11: Promote life-long learning Policy Action 12: Set policies and procedures to renew programs Policy Goal 5: Ensuring efficiency and equity in funding Policy Action 13: Articulate funding strategy Policy Action 14: Allocate funds to achieve efficient results Policy Action 15: Foster partnerships Policy Goal 6: Assuring relevant and reliable standards Policy Action 16: Specify accreditation standards Policy Action 17: Strengthen skills testing and certification Policy Action 18: Assure credibility of accreditation and of skills certification Dimension 3: Service Delivery Ensuring tangible results on the ground Policy Goal 7: Fostering relevance in training programs Policy Action 19: Link training, industry, and research institutions Policy Action 20: Design training with industry inputs Policy Action 21: Improve competence of administrators and instructors Policy Goal 8: Incentivizing excellence in training provision Policy Action 22: Promote diversity in training provision Policy Action 23: Incentivize private providers to meet WfD standards Policy Action 24: Motivate public training institutions to respond to demand for skills Policy Goal 9: Enhancing accountability for results Policy Action 25: Strengthen monitoring and evaluation Policy Action 26: Specify reporting requirements by training institutions Policy Action 27: Increase focus on outcomes, efficiency and innovation SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 50 Annex 2 | Benchmarking Results Dimension 1970 1990 2010 Policy Goal 1970 1990 2010 Policy Action 1970 1990 2010 Advocate for WfD as priority for economic 3.0 3.0 4.0 Articulating development a Strategic Evaluate economic prospects and its 3.1 3.2 3.7 3.8 3.7 3.8 Direction implications for skills for WfD Develop policies to align skills demand and 2.3 3.0 3.3 supply Prioritizing Promote demand-driven approach 2.0 2.7 3.3 a Demand- Strategic Strengthen firms' demand for skills to 2.9 3.0 3.7 led 2.3 2.7 3.7 1.3 1.7 3.7 Framework improve productivity Approach to WfD Address critical challenges in the future 3.7 3.7 4.0 supply of skills Ensure coherence of key strategic WfD 3.3 2.7 4.0 Strengthen priorities Critical Institutionalize WfD roles and 3.2 3.1 3.8 4.0 4.0 4.0 Coordina- responsibilities tion Facilitate interaction among all WfD 2.3 2.7 3.3 stakeholders Foster articulation across levels and 3.0 3.0 4.0 Diversifying programs Pathways 2.2 2.6 3.5 Promote life-long learning 2.0 3.0 3.5 for Skills Acquisition Set policies and procedures to renew 1.5 1.8 3.0 programs Articulate funding strategy 2.3 2.3 3.6 Ensuring System Efficiency 2.1 2.7 3.5 1.7 2.2 3.4 Allocate funds to achieve efficient results 1.7 1.7 3.8 Oversight and Equity in Funding Foster partnerships 1.0 2.7 2.9 Specify accreditation standards 2.0 2.8 3.3 Assuring Relevant 2.4 3.2 3.4 Strengthen skills testing and certification 2.3 4.0 4.0 and Reliable Standards Assure credibility of accreditation and of 2.9 2.9 3.1 skills testing Link training providers, industry and 1.8 2.9 3.9 Fostering research institutions Relevance 2.0 2.5 3.2 Design training with industry inputs 2.4 2.8 3.0 in Training Programs Improve competence of administrators and 2.0 2.0 2.6 instructors Incentiviz- Promote diversity in training provision 2.3 3.0 3.0 ing Service Incentivize private providers to meet WfD 1.9 2.1 3.1 Excellence 1.5 1.8 2.5 1.3 1.5 2.3 Delivery standards in Training Provision Motivate public training institutions to 1.0 1.0 2.3 respond to demand for skills Strengthen monitoring and evaluation 3.0 2.7 4.0 Enhancing Accountabil Specify reporting requirements by training 2.1 2.1 3.6 2.3 2.5 3.4 -ity for institutions Results Increase focus on outcomes, efficiency and 1.0 1.0 3.5 innovation SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 51 Annex 3 | Acronyms ADB Asian Development Bank CHAMP HRD Ability Magnified Program DCI data collection instrument EIS Employment Insurance System EPB Economic Planning Board GDP gross domestic product HRD human resource development IBRD International Bank for Reconstruction and Development ICT Information and communication technologies ITA Individual Training Account JSDP Job Skill Development Program KDI Korea Development Institute KEDI Korea Education Development Institute KEIS Korea Employment Information Service KRIVET Korea Research Institute for Vocational Education and Training KSS Korea Skills Standards KRW South Korean Won KUT Korea University of Technology and Education MEST Ministry of Education, Science and Technology MOCE Ministry of Culture and Education MOE Ministry of Education MOE&HRD Ministry of Education and Human Resource Development MOEL Ministry of Employment and Labor MOL Ministry of Labor NCS National Competency Standards NOS National Occupational Standards OECD Organisation for Economic Co-operation and Development OJT on-the-job training PCER Presidential Commission for Education Reform PI Principal Investigator PISA Programme for International Student Assessment RHRD Regional Human Resource Development [Committees] SABER Systems Approach for Better Education Results SHRDC Sectoral Human Resource Development Council SME small- and medium-scale enterprises TVET technical and vocational education and training WfD workforce development SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 52 Annex 4 | Documents Documents in Korea Chang, M., 1999. A Study on the Operational System and Curriculum Development Model for the Articulation Program between Vocational High Schools and Junior Colleges, KRIVET, Seoul. _____, 2006. The Distribution of Best Practices on Teaching and Learning for Two-year College Innovation. KRIVET, Seoul, Korea. Chang, M., et al., 1998. Survey Research on Education and Training Program Development for Unemployed Job- Seekers, KRIVET, Seoul. Chang, M., et al., 2010. The Direction of Revising Vocational High School Curriculum According to the 2009 Revision, KRIVET, Seoul. Chang, S., 1995. Secondary Education in Korea: 1960-1990, Korean Education Development Institute, Seoul. _____, 2009. "Outline of Vocational Education," in Choi, Y., et al. (eds.), Study on the Vocational Education and Training of Korea to the Cooperation with Developing Countries: Study on the Establishment of a Development Cooperation Model of Korean Vocational Education and Training, KRIVET, Seoul. Choi, D., 2007. The Measures to Develop and Implement Practice-based After-school Career Guidance Program, KRIVET, Seoul. Choi, D., et al., 2011. The Measures to Improve the Flexibility of the Pathways for Vocational Education at High School Level, KRIVET, Seoul. Chung, T., 2008. The Changes and Tasks of the Vocational Competencies Development in Korea, KRIVET, Seoul. _____, 2009. "Vocational Training Financing," in Choi, Y., et al. (eds.), Study on the Vocational Education and Training of Korea to the Cooperation with Developing Countries: Study on the Establishment of a Development Cooperation Model of Korean Vocational Education and Training, KRIVET, Seoul. Chung, T., et al., 2004. The Development of National Competency Standards. KRIVET, Seoul, Korea. Jin, M., 2002. The Establishment of Career-Net Server and the Development of Contents of Career Guidance for Vocational High School Students, KRIVET, Seoul. _____, 2010. Providing Cyber Career Guidance, KRIVET, Seoul. Jung, J. and I. Shim, 2002. The Diversity of Learning through the Recognition of Prior Learning – Cooperative Study with the OECD and the ILO, KRIVET, Seoul. Jung, T., 2007. Consulting to Support Change and Innovation in Vocational High Schools, KRIVET, Seoul. Jung, T., et al., 2008. Consulting Project to Support the Change and Innovation in Individual Vocational High School, KRIVET, Seoul. Jung, T., 2007. Consulting to Support Change and Innovation in Vocational High Schools, KRIVET, Seoul. Jung, T. et al., 2008. The Consulting Project to Support the Change and Innovation in Individual Vocational High School, KRIVET. Seoul. Kang, K. et. al., 1999. Measures of Work-based Training of Vocational High School Instructors, KRIVET, Seoul. _____, 2009. “Secondary Vocational Education,� in Choi, Y. et al. (eds.), Study on the Vocational Education and Training of Korea to the Cooperation with Developing Countries: Study on the Establishment of a Development Cooperation Model of Korean Vocational Education and Training, KRIVET, Seoul. KEIS, 2010. Future Skills Assessment for All Industries, Seoul. _____, 2010. Mid- and Long-Term Future Skills Assessment for All Industries, Seoul. _____, 2010b. Regional Future Skills Assessment, Seoul. Keum, J., et al., 2006. Employment Insurance in Korea: The First Ten Years, KLI, Seoul. Kim, J., et al., 2010. The support of consulting to Meister High Schools, KRIVET, Seoul. Kim, M., Y. Lee and J. Choi., 2009. Study on the Establishment of a Development Cooperation Model of Korean Vocational Education and Training, KRIVET, Seoul. Kim, S., 2009. “Qualification System,� in Choi, Y., et al. (eds.), Study on the Vocational Education and Training of Korea to the Cooperation with Developing Countries: Study on the Establishment of a Development Cooperation Model of Korean Vocational Education and Training, KRIVET, Seoul. Kim, S., et al., 2010. The Classification of Qualifications based on Operating Boundary of National Technical Qualifications, KRIVET, Seoul. Kim, Y. and Y. Kim, 2012. “My Star, Meister High Schools,� in J. Lee (ed.), Positive Changes: the Education, Science and Technology Policies of Korea, Korean Economic Daily and Business Publications Inc., Seoul. Oh, Y., 2009. “Vocational Training Infrastructure,� in Choi, Y. et al., Study on the Vocational Education and Training of Korea to the Cooperation with Developing Countries: Study on the Establishment of a Development Cooperation Model of Korean Vocational Education and Training, KRIVET, Seoul. Ok, J., et al., 2010. Study on Education Curriculum of Five Areas in Vocational High Schools, KRIVET, Seoul. Park, C., 2009. Study on Measures to Improve the Evaluation System of Training Providers, KRIVET, Seoul. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 53 Park, D., 2011. Korean Policies on Secondary Vocational Education: Efforts to Overcome Skills Mismatch and Labor Force Shortages. In Vocational Training in Research and Practice No. 3/2011, Federal Institute for Vocational Education and Training (BIBB), Bonn. Park, Y., et al., 2010. Development of Curriculum and Skills Qualification System of Meister Schools: Meister Schools Specializing in Port Logistics, KRIVET, Seoul. ______, 2010. Establishment of a System that Promotes Skills Development in Small and Medium-sized Enterprises, KRIVET, Seoul. ______, 2011. Revision of National Curriculum for Vocational High School in the Area of Business, KRIVET and Ministry of Education, Science, and Technology, Seoul. Ra, Y., et al., 2009. Evaluation of Government-Supported programs within the Employment Insurance System. KRIVET. Seoul. ______, 2010. Measures to Improve the Effectiveness of Training for the Vulnerable Classes, KRIVET, Seoul. Suh, S., 2002. The History of Korean Vocational Training System. Korean Chamber of Commerce, Seoul. Yoo, K., 2009. "Economic Growth & VET". In Choi, Y. et al., Study on the Vocational Education and Training of Korea to the Cooperation with Developing Countries: Study on the Establishment of a Development Cooperation Model of Korean Vocational Education and Training, KRIVET, Seoul. Documents in English OECD Education Statistics (database). OECD, Paris. http://www.oecd-ilibrary.org/education/data/oecd-education- statistics_edu-data-en. Social Expenditure Database. OECD, Paris. http://www.oecd.org/els/soc/socialexpendituredatabasesocx.htm. Tan, Jee-Peng, Kiong Hock Lee, Alexandria Valerio and Joy Yoo-Jeung Nam (2013), What Matters in Workforce Development: A Framework and Tool for Analysis, SABER Working Paper Series Number 6, Education Department, Human Development Network, World Bank, available at http://go.worldbank.org/32GZWRY8Z0. World Development Indicators (database). World Bank, Washington, DC. http://data.worldbank.org/data- catalog/world-development-indicators Korean Government Acts The Act on Credit Recognition The Employment Insurance Act Enforcement Decree on Establishment and Management of Colleges Enforcement Decree on Establishment and Management of Schools The Framework Act on Employment Policy The Framework Act on Vocational Training The Government organization Act The Higher Education Act The Industrial Education Promotion Act The Lifelong Education Act The Minimum Wage Act The National Technical Qualification Act The Polytechnics Act The Promotion of Industrial Education and Industry-Academic Cooperation Act The Public Education Officials Act Regulation of Weekly Meetings between the President and All Ministers Regulation on the National Employment Strategy Council, 2010 Vocational Skills Development Act Workers Vocational Skills Development Act SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 54 Websites www.mest.go.kr www.moel.go.kr www.krivet.re.kr http://hrdi.kut.ac.kr http://kcc.go.kr http://newslibrary.naver.com www.academyinfo.go.kr www.career.go.kr www.careernet.re.kr www.hrd.go.kr www.hrdkorea.or.kr www.fki.or.kr www.greengrowth.go.kr www.kcce.or.kr www.kedi.re.kr www.kef.or.kr www.keis.or.kr www.kiet.re.kr www.kli.re.kr www.kopo.ac.kr www.kosis.kr www.law.go.kr www.meister.go.kr www.me.go.kr www.mke.go.kr www.nhrd.net www.nile.or.kr www.sbe.or.kr www.shrdc.or.kr www.work.go.kr SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 55 Annex 5 | Informants The following individuals were interviewed to gather additional information. Their contributions are gratefully acknowledged. Chang, Myung-Hee – Research Fellow in KRIVET (Korea Research Institute for Vocational Education and Training) Chang, Suk-Min – Former Research Fellow in KRIVET (Korea Research Institute for Vocational Education and Training) Chung, Taek-Soo – Former Research Fellow in KRIVET (Korea Research Institute for Vocational Education and Training) Joo, In- Joong – Research Fellow in KRIVET (Korea Research Institute for Vocational Education and Training) Jung, Won-Ho – Government Official in Korean Ministry of Employment and Labor Kang, Soon-Hee – Professor in Kyunggi University. Kim, Hwan-Sik – Government Official in Korean Ministry of Education, Science, and Technology Lee, Duck-Hee – Government Official in Korean Ministry of Employment and Labor Lee, Ji-Yeon – Research Fellow in KRIVET (Korea Research Institute for Vocational Education and Training) Lee, Jong-Tae –Former Director General in HRD service of Korea Lee, Kye-Woo – Former World Bank Staff and Government Official in Korean Labor Office Lee, Young-Hyun – Former Research Fellow in KRIVET (Korea Research Institute for Vocational Education and Training) Oh. Young-Hoon – Former Research Fellow in KRIVET (Korea Research Institute for Vocational Education and Training) Park, Chong-Sung – Research Fellow in KRIVET (Korea Research Institute for Vocational Education and Training) Park, Chun-Soo – Research Fellow in KRIVET (Korea Research Institute for Vocational Education and Training) Park, Dong-Ryul – Research Fellow in KRIVET (Korea Research Institute for Vocational Education and Training) Park, Kye-Young –Director in HRD service of Korea Park, Sang-Min – Professor in Korea Polytechnics Park, Yong-Ung – Former Government Official in Korean Ministry of Labor Suh, Sang-Sun – Former Government Official in Korean Ministry of Labor. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 56 Annex 6 | Benchmarking Rubrics Functional Dimension 1: Strategic Framework Policy Policy Action Level of Development Goal Latent Emerging Established Advanced Advocate for WfD  WfD is not prioritized in  Political and other leaders  Political and other key  WfD is fully integrated into as a priority for national economic recognize the leaders in industry national policies and importance of WfD for provide sustained 1. Articulating a Strategic Direction for Workforce Development economic development. strategies, reflecting a development economic development; support for WfD; holistic approach 14 to WfD; economic development economic development economic development plans have identified a few plans assess and specify plans formally assess and WfD priorities. several WfD priorities specify a wide range of that are being WfD priorities that are implemented. supported by implementation plans and budgets, these are subject to continuous evaluation and improvements. Evaluate economic  The concept of a demand-  A demand-driven WfD  A demand-driven WfD  A well-informed demand- prospects and its driven approach 15 to WfD strategy is beginning to strategy informed by driven WfD strategy with implications for has yet to emerge. take shape but policy appropriate analyses is continuous evaluation skills reforms are often impeded accompanied by some and improvements has by various difficulties. policy reforms that have been internalized as a been implemented. standard practice. Develop polices to  Policies are being  A few policies have been  A range of policies based  Policies are formulated on align skills demand developed but are not developed on the basis of on occasional and the basis of well-informed and supply based on formal occasional assessments routine assessments by analyses, including analyses of skills to address imbalances government and assessments by demand. between skills demand independent WfD independent organizations, and supply; these policies stakeholders have been and they are routinely and interventions are implemented to address reviewed and updated subject to in-house skills imbalances; these with inputs from relevant reviews. are subject to routine in- stakeholders to ensure house reviews and program offerings fit the independent external economic climate and evaluations. demands for new skills. 14 A holistic approach is one that addresses multiple dimensions of skills development, including: (a) aligning skills training to employers’ needs and national goals for productivity, growth and poverty reduction; (b) governing the system to achieved the desired national goals, and (c) ensuring tangible results on the ground. 15 In a demand-driven strategy, the demand for skills drives the supply of training services. Arrangements to achieve this relationship between skills supply and demand include: the involvement of employers in shaping training policies and provision, financing tied to employment outcomes, etc. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 57 Functional Dimension 1: Strategic Framework Policy Policy Action Level of Development Goal Latent Emerging Established Advanced Promote a  There is limited or no  Business and industry play  A demand-driven  A demand-driven approach demand-driven attempt to incorporate an advisory role in approach to WfD is in to WfD has been fully approach business and industry establishing and place with business and established with business inputs in establishing and implementing WfD industry providing inputs and industry playing both implementing WfD priorities based on for setting WfD priorities advisory and executive priorities. occasional studies and based on routine roles supported by routine assessments. assessments provided by assessments from government agencies, government agencies, employers, trade other key WfD associations and labor stakeholders and unions. independent organizations. 2.Prioritizing a Demand-led Approach Strengthen firms'  Few incentives and  Incentives and services  Incentives and services  Incentives and services demand for skills services exist to support are in place to provide enable firms to expand enabling firms to address to improve skills development for selective support for the skills sets of workers skills constraints impeding productivity technology upgrading by technology-related skills to facilitate technology their ability to upgrade firms. upgrading; incentive adaptation and adoption technologies and programs are subject to for greater productivity; productivity are well occasional reviews but these measures are established; these are often without adequate supported by routine routinely reviewed and follow-up of reviews followed by adjusted for impact; all recommendations. implementation of some key review review recommendations. recommendations are implemented. Address critical  There is limited or no  Future supply of skills is  Assessments of future  Future skills supply is challenges in the formal assessment of assessed on an skills supply are routinely assessed for future supply of the future supply of skills. occasional basis; routinely conducted for multiple industries and skills recommendations from key sectors at the sectors at the national and assessments are regional and national international levels; implemented with some levels; recommendations recommendations are delay, often without are implemented with implemented promptly; adequate funding and little delay; responsibilities for assignment of responsibilities for implementation are clearly responsibility for implementation of spelled out and attention is implementation. recommendations are given to the realization of made explicit but without monitorable goals. explicit attention to monitorable goals. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 58 Functional Dimension 1: Strategic Framework Policy Policy Action Level of Development Goal Latent Emerging Established Advanced Ensure coherence  There is no mechanism  Coherence of key strategic  Coherence of key  Formal mechanisms of key strategic in place to ensure WfD priorities at the strategic WfD priorities at overseeing coordination WfD priorities coherence of key strategic leadership level is the apex leadership level and implementation of WfD priorities among achieved through is achieved through WfD strategies are in place WfD leaders. informal processes that formal and informal and they support yield limited WfD mechanisms that yield strengthening structures of 3. Strengthening Critical Coordination outcomes. positive WfD outcomes. WfD policy development, budget allocations, and assessments of future skills demand and supply. Institutionalize the  Roles and responsibilities  Roles and responsibilities  Roles and responsibilities  Clear WfD roles and structure of WfD for WfD are not formally of WfD stakeholders are are well-defined and responsibilities have been roles and defined, leaving the WfD poorly defined, leaving supported by legislation institutionalized through responsibilities authority without a clear the WfD authority with a and resources that enable legislation and the WfD mandate. limited mandate and the WfD authority and authority has the limited resources to key stakeholders to mandate to formulate and discharge its discharge their respective request resources that are responsibilities effectively. functions effectively. needed for the relevant authorities to discharge their responsibilities in a transparent and effective manner. Facilitate  No formal process exists  Informal structures exist  Formal structures exist  Formal structures communication for engaging all that facilitate in key economic sectors fostering extensive and interaction stakeholders. communication and that support extensive interactions among WfD among all WfD interaction among key communication and stakeholders that stakeholders. interaction among the culminate in consensuses stakeholders relevant stakeholders. on WfD priorities and policies are in place in most sectors. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 59 Functional Dimension 2: System Oversight Policy Policy Action Level of Development Goal Latent Emerging Established Advanced Foster articulation  No functioning  Ad hoc articulation  Ad hoc articulation  Standardized across levels and articulation arrangements exist within arrangements exist articulation programs arrangements. secondary schools and across institutions at the arrangements exist across post-secondary secondary and post- secondary and post- institutions; only ad hoc secondary levels; a secondary programs as incentives are in place to program of incentives is well as between TVET and foster articulation across in place to foster higher education; a system levels of instruction. articulation of incentives is in place to arrangements. foster articulation across 4. Diversifying Pathways for Skills Acquisition programs and levels of education and training. Promote life-long  No arrangements or  Ad hoc private resources  School- and community-  Integrated regional or learning public resources are in and arrangements based resources and national system with place to support life-long support life-long learning arrangements support one-stop online learning, recognition of and recognition of prior life-long learning and resources and prior learning, and learning; publicly-funded recognition of prior standardized disadvantaged groups. training programs exist learning; publicly-funded arrangements support with for disadvantaged training programs with life-long learning and groups subject to some minimal restrictions are recognition of prior restrictions. available for most learning; publicly-funded disadvantaged groups. training programs provide open access to all disadvantaged groups. Set policies and  There are no set policies  Introduction, adjustment  Introduction, adjustment  Management of publicly- procedures to to manage program and closure of publicly- and closure of publicly- funded training programs renew programs offerings; training funded programs are made funded programs are are made on the basis of providers may introduce, through ad hoc, non- based on a few explicit comprehensive and adjust or close publicly- standardized processes; and standardized explicit requirements funded programs at will. applications for these requirements; that include labor market changes must be done applications can be made analyses; applications can personally and are vetted online and they are vetted be made online and they by ad hoc committees. by formal committees are vetted by formal with some representation committees with from other WfD representation from other stakeholders. WfD stakeholders and they operate with a commitment to act in a timely manner. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 60 Functional Dimension 2: System Oversight Policy Policy Action Level of Development Goal Latent Emerging Established Advanced Articulate funding  Ad hoc funding of WfD by  Systematic funding of WfD  Systematic funding of  Systematic funding of WfD strategy multiple stakeholders; no is determined by WfD is determined by is determined through evaluation of funding government agencies with government agencies consensus building among allocation and strategy. annual budget with advice from key government agencies and appropriations and line- stakeholders; annual key stakeholders; annual item allocations; only budget appropriations budget appropriations are occasional evaluations of are supported by detailed supported by detailed 5. Ensuring Efficiency and Equity in Funding funding allocation and spending plans; there are spending plans to foster strategy. routine evaluations of improved performance; funding allocation and routine evaluations of strategy. funding allocation and strategy are accompanied by appropriate reforms as needed. Allocate funds to  No formal process for  A formal process without  A formal process for  Allocation of WfD funds is achieve efficient allocating public funds for explicit criteria is in allocating public funds based on explicit criteria results WfD. place; there are no reviews based on explicit criteria aligned with WfD priorities, of allocation criteria. exists; there are periodic including efficiency in reviews of the criteria but resource utilization; there recommended changes are frequent reviews of the face relatively long criteria and implemented lags. recommendations are implemented in a timely manner. Foster  Limited or no  Limited partnership with  Extensive partnership  An institutionalized partnerships partnership between business and industry is in between WfD authority partnership network with WfD authority and place; partners have access and key stakeholders in open membership for all stakeholders in business to some public resources; business and industry; WfD stakeholders is in and industry; key key stakeholders partners have access to place; partners have access stakeholders provide few, contribute a small range of some public resources; to wide range of public if any, resources toward resources toward WfD key stakeholders resources; key stakeholders meeting WfD priorities. priorities. contribute a broad range contribute an extensive of resources for WfD. range of resources to meet WfD priorities. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 61 Functional Dimension 2: System Oversight Policy Policy Action Level of Development Goal Latent Emerging Established Advanced Specify  No accreditation  Some accreditation  An accreditation agency  An accreditation agency accreditation standards have been standards have been has been established with standards reflecting standards established; training established; standards are with standards developed international best practices providers are free to offer infrequently reviewed; jointly with relevant is in place; accreditation any program. accreditation applies to stakeholders; standards standards are reviewed public institutions only. are reviewed internally frequently both internally on a regular or as needed and by independent basis; accreditation parties; accreditation and 6. Assuring Relevant and Reliable Standards applies to public renewal of accreditation institutions and non-state is compulsory for all providers receiving public institutions and public funding; renewal non-state training applies to the latter providers, regardless of only. their sources of funding. Strengthen skills  Competency-based  Competency-based testing  A standardized  A standardized testing and testing has yet to be applies to critical competency-based testing competency-based testing certification introduced; testing is occupations in key system is in place and system has been largely based on sectors; testing may focus applies to most established for most theoretical knowledge on a mix of theory and occupations; testing may occupations; IT-based and administered by practice and is focus on a mix of theory testing focuses on theory training providers administered and certified and practice and is and practice and is themselves. by independent third administered and administered and certified parties. certified by independent by independent third third parties. parties. Assure credibility  There is limited  Accreditation standards  Accreditation standards  A license to operate is of accreditation attention to are established through ad established with inputs issued only to institutions and of skills accreditation standards. hoc arrangements; some from WfD stakeholders and providers meeting certification support is provided to apply to all institutions accreditation standards encourage non-state and providers receiving determined by key WfD providers to seek public funding; credibility stakeholders; credibility of accreditation; credibility of of skills testing is ensured skills testing is ensured skills testing is ensured through explicit through standardized through explicit standardized testing testing protocols, standardized testing protocols and accreditation of testing protocols. accreditation of testing centers and random centers. audits. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 62 Functional Dimension 3: Service Delivery Policy Policy Action Level of Development Goal Latent Emerging Established Advanced Link training  Weak or no links  Informal links exist  Formal links exist  Formal links exist industry and between training between some training between some training between most training research institutions and industry institutions and industry institutions and industry institutions and industry institutions and research institutions. and research institutions and research institutions, and research institutions, to improve training leading to significant leading to significant relevance and quality. collaboration in several collaboration in a wide 7. Fostering Relevance in Training Programs activities. range of activities such as the provision of industry internships and training, and the introduction and redesign of training programs. Design training  Industry has limited or  Industry has an advisory  Industry has both an  Industry has a with industry no role in identifying, role in identifying, advisory and a decision- widespread advisory and inputs prioritizing and designing prioritizing and designing making role in decision-making role in publicly-funded publicly-funded programs identifying, prioritizing identifying, prioritizing programs. in some training and designing publicly- and designing publicly- institutions, usually funded programs in some funded programs in most through informal contacts. training institutions. training institutions. Improve  Few or no measures are  Recruitment of  Recruitment of  Recruitment of competence of in place to enhance the administrators and administrators and administrators and administrators competence of WfD instructors is based on instructors is based on instructors occurs through and instructors administrators and minimum academic minimum academic a competitive process instructors. qualification(s), with qualification(s), with based on both academic provisions for some in- provisions for in-service qualification(s) and service training and training and industry experience, with performance-based performance-based a wide range of in-service recruitment and retention recruitment and training programs and measures based on retention measures that performance-based occasional evaluations. are based on routine recruitment and retention evaluations. measures based on routine evaluations. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 63 Policy Policy Action Level of Development Goal Latent Emerging Established Advanced Promote diversity  Training occurs through  Training policies allow  Training policies facilitate  A highly-diverse mix of in training state provision only, some private providers to participation of non-state non-state training provision with no incentives to operate; training is training providers; providers offer training promote non-state provided mainly by non- training is offered mainly within a comprehensive provision of training. profit providers with few by NGOs, with a system system with a wide range incentives in place to of incentives that are of incentives is in place to foster non-state provision evaluated routinely are in foster non-state provision; of training. place to foster non-state incentives are subject to 8. Incentivizing Excellence in Training Provision provision. evaluations and the recommendations are implemented. Incentivize private  No incentives are in  At least one incentive  A system of financial  A comprehensive system providers to meet place to encourage non- that is subject to and non-financial of incentives that are WfD standards state providers to meet occasional evaluation is in incentives that are subject to both occasional WfD standards. place to encourage non- subject to occasional and and routine evaluations state providers to meet routine evaluations is in and adjustments is in place WfD standards, but no place to encourage non- to encourage non-state review system exists to state providers to meet providers to comply with ensure continued WfD standards; periodic WfD standards; periodic adherence to WfD audits are conducted to audits with penalties for standards. ensure continued noncompliance are adherence to WfD conducted and enforced to standards. ensure continued adherence to WfD standards. Motivate public  No mechanism or  Training institutions are  Training institutions are  Training institutions are training process is in place to expected to meet target expected to meet a wider expected to meet a wide institutions to ensure training repetition and graduation range of WfD outcomes; range of WfD outcomes; a respond to institutions are demand- rates but few incentives some incentives and robust system of driven. are in place ensure they penalties that are subject incentives and penalties demand for skills are demand-driven. to both occasional and that is subject to both routine evaluations are in occasional and routine place to ensure these evaluations and institutions respond to adjustments is in place to the demand for skills. ensure that the training institutions are driven by employers’ demands for skills. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 64 Policy Policy Action Level of Development Goal Latent Emerging Established Advanced Strengthen  Limited attention is  Occasional monitoring  Routine monitoring and  Skills demand and supply monitoring and placed on the monitoring and evaluation of skills evaluation of skills are monitored and evaluation and evaluation of skills demand and supply is in demand and supply is in evaluated through routine demand and supply; an place; an overview of WfD place; an overview of WfD surveys and specially overview of WfD data is data is available only in data is available in commissioned studies; available through government agencies. published reports and WfD data are available informal channels only.. websites. from a consolidated website. Specify reporting  No specific data  Public institutions and  Public institutions and  Both public institutions requirements by collection and reporting non-state training non-state training and non-state training are required; training providers are required to providers are required to providers are required to 9. Enhancing Accountability for Results training institutions providers maintain their collect and maintain collect, maintain and collect, maintain and own data bases. administrative and submit a comprehensive submit a comprehensive graduation statistics; data list of data through an list of data, including reporting is voluntary for integrated management client-feedback, to the WfD non-state providers but information system to the authority using an they may be notified of WfD authority; timely integrated management non-compliance. submission is fostered information system; through incentives for incentives, penalties and compliance and data quality audits are penalties for non- performed to ensure compliance. timely reporting of reliable data. Increase focus on  No system of evaluation  Occasional evaluation  Routine evaluation and  Institutionalized routine outcomes, and monitoring is in and monitoring of monitoring of several evaluation and efficiency and place to ensure efficiency limited aspects of key aspects of training monitoring of all key innovation in delivery of training training services is in place services is in place with aspects of the delivery of services. with results used to results used to provide training services with provide feedback to the feedback to training results used to provide training institutions; institutions, to prioritize feedback to institutions, to information on labor funding allocations, and prioritize funding market outcomes of identify good practices in allocations, identify good graduates is publicly service delivery; practices and options for available for some information on labor system-level institutions only. market outcomes of improvements; online graduates is publicly dissemination of labor available for all market outcomes of institutions. graduates is available to all users. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 65 Authorship and Acknowledgements This report is a product of collaborative effort between a team at the Korea Research Institute for Vocational Education and Training (KRIVET) composed of Dr. Ko Hye-Won and Dr. Park Yoon-Hee and staff at the World Bank comprising Jee-Peng Tan, Ryan Flynn and Joy Yoo-Jeung Nam (leader and members, respectively, of the SABER-WfD team in the Education Department of the World Bank’s Human Development Network). Dr. Ko Hye-Won and Dr. Park Yoon-Hee collected the data using the SABER-WfD data collection instrument, prepared initial drafts of the report, and finalized the report. The Bank SABER-WfD team scored the data, designed the template for report writing, prepared the sections and annexes related to the SABER-WfD methodology, and provided the KRIVET team with technical and substantive support throughout the process of data collection, analysis and report writing. Special thanks go to Joy Yoo-Jeung Nam for assistance with data collection and to Ryan Flynn for help with writing the report. The current draft has benefited from suggestions and feedback from Professor David Ashton, Dr. Lee Kye Woo, Dr. Lee Young-Hyun, Kim Dug Ho, Dr. Kwon Dae Bong and Dr. Park Sungmin. The research team acknowledges the support of all who have contributed to the report and its findings, including informants, survey respondents, participants at various consultation workshops, as well as other members of the SABER-WfD team at the World Bank, especially Rita Costa, Kiong Hock Lee, Brent Parton and Alexandria Valerio. The research team gratefully acknowledges the generous financial support of the Government of the United Kingdom through its Partnership for Education Development (PFED) with the Word Bank and of the Korean Government through the Korean Trust Fund at the World Bank. SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 66 www.worldbank.org/education/sabe The Systems Approach for Better Education Results (SABER) initiative produces comparative data and knowledge on education policies and institutions, with the aim of helping countries systematically strengthen their education systems. SABER evaluates the quality of education policies against evidence-based global standards, using new diagnostic tools and detailed policy data. The SABER country reports give all parties with a stake in educational results—from administrators, teachers, and parents to policymakers and business people—an accessible, objective snapshot showing how well the policies of their country's education system are oriented toward ensuring that all children and youth learn. This report focuses specifically on policies in the area of Workforce Development This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. THE WORLD BANK Government of the Republic of Korea SYSTEMS APPROACH FOR BETTER EDUCATION RESULTS 67