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Human Resources Development System, Policy and the Contributions of HRD to Economic Growth in South Korea Korea Research Institute for Korea Research Institute for Vocational Education & Vocational Education & Training Training Chang-Won Jang Chang-Won Jang Senior Research Fellow Senior Research Fellow

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I. Introduction I. Introduction

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Page 1: Human Resources Development System, Policy and the Contributions of HRD to Economic Growth in South Korea Korea Research Institute for Korea Research Institute

Human Resources Development System, Policy and the Contributions of HRD to Economic Growth

in South Korea

Korea Research Institute for Korea Research Institute for Vocational Education & TrainingVocational Education & Training

Chang-Won Jang Chang-Won Jang

Senior Research FellowSenior Research Fellow

Page 2: Human Resources Development System, Policy and the Contributions of HRD to Economic Growth in South Korea Korea Research Institute for Korea Research Institute

ⅠⅠ. Introduction. Introduction

Ⅱ Ⅱ. HRD systems in South Korea. HRD systems in South Korea

Ⅲ Ⅲ. The Contributions of Education to Economic Growth. The Contributions of Education to Economic Growth

Ⅳ Ⅳ. Current Situation and Direction of Human Policy . Current Situation and Direction of Human Policy in South Korea in South Korea

Ⅴ Ⅴ. Korean Labor Takes a Global Perspective. Korean Labor Takes a Global Perspective

Ⅵ Ⅵ. A New Paradigm of Labor Supply & Demand. A New Paradigm of Labor Supply & Demand

ContentsContents

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I. I. IntroductionIntroduction

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1.1. Global Trends in Human Resource DevelopmentGlobal Trends in Human Resource Development Trends in Human Resource DevelopmentTrends in Human Resource Development · · MMacro HRD at the government levelacro HRD at the government level ·· In regard to macro HRD, as it is initiated by governments, In regard to macro HRD, as it is initiated by governments, the main concern is strengthening overall nationalthe main concern is strengthening overall national competitiveness in the global marketplacecompetitiveness in the global marketplace ·· Micro HRD at the enterprise level, of late, appears to Micro HRD at the enterprise level, of late, appears to primarily take the form of organizational reform, primarily take the form of organizational reform, company policy revisions toward greater productivity,company policy revisions toward greater productivity, and incentive programs aimed at boosting performanceand incentive programs aimed at boosting performance among individual employeesamong individual employees

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Evaluation in HRD SystemsEvaluation in HRD Systems · · First, both governments and companies are increasing First, both governments and companies are increasing investment in HRDinvestment in HRD·· Second, the key change in development systems is the Second, the key change in development systems is the move away from "supplier-centered" education and trainingmove away from "supplier-centered" education and training systems that are planned and controlled by the central systems that are planned and controlled by the central government. Now flexibly responding to labor marketgovernment. Now flexibly responding to labor market demand, programs are more region-specific and are demand, programs are more region-specific and are conceived through a decentralized decision-making process conceived through a decentralized decision-making process ·· Third, countries around the world are trying to develop cost- Third, countries around the world are trying to develop cost- efficient yet effective education and training programs, and efficient yet effective education and training programs, and design evaluation programs to be used to assess design evaluation programs to be used to assess implemented programs on a regular basis so as to identify implemented programs on a regular basis so as to identify areas of improvement. areas of improvement.

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·· Fourth, a wide variety of continuing education Fourth, a wide variety of continuing education programs are under active development in many programs are under active development in many countries across the world. countries across the world.

·· Fifth, with the dawning of the age of knowledge Fifth, with the dawning of the age of knowledge and information, college graduates worldwide and information, college graduates worldwide have emerged as a leading component of have emerged as a leading component of workforces. Accordingly, one of the main focuses workforces. Accordingly, one of the main focuses in educational reforms worldwide is widening in educational reforms worldwide is widening access to higher education and enhancing the access to higher education and enhancing the quality of higher education. quality of higher education.

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HRD Projects around the WorldHRD Projects around the World ·· First, policy focus is laid on information-related skills First, policy focus is laid on information-related skills training to provide future workforces with the necessary training to provide future workforces with the necessary abilities to meet information-age labor market abilities to meet information-age labor market requirements. requirements. ·· Second, comprehensive continuing education systems Second, comprehensive continuing education systems are under construction. This phenomenon is a responseare under construction. This phenomenon is a response to the shortened lifecycle of knowledge, making learning to the shortened lifecycle of knowledge, making learning a lifelong requirement, due once again to the fastchanging a lifelong requirement, due once again to the fastchanging technological environment. technological environment. ·· Third, skills and competencies specifically demanded by Third, skills and competencies specifically demanded by the knowledge and information age are becoming the the knowledge and information age are becoming the priority in education. These competencies are basic job priority in education. These competencies are basic job

skills, general knowledge and specialized knowledge.skills, general knowledge and specialized knowledge.

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·· Fourth, institutes of higher education are Fourth, institutes of higher education are integrating vocational training into curriculums.integrating vocational training into curriculums.

·· Fifth, school system reforms are being pursued Fifth, school system reforms are being pursued

with the goal of creating viable schools, adapted with the goal of creating viable schools, adapted to a knowledgebased society. to a knowledgebased society.

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2. Historical Background of South Korea2. Historical Background of South Korea Education Market Education Market

Korea started in the early 1960s as a typical labor-Korea started in the early 1960s as a typical labor-surplus economy with a scarce endowment of surplus economy with a scarce endowment of natural resourcesnatural resources

In the 20 years following 1945, In the 20 years following 1945,

the number of the number of

· College students increased almost 20-fold· College students increased almost 20-fold · Middle and high school students about 15-fold· Middle and high school students about 15-fold..

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As a result, by 1965 Korea's human resource As a result, by 1965 Korea's human resource development had exceeded the norm for a country development had exceeded the norm for a country with three times its median per capita GNPwith three times its median per capita GNP

Primary driving forces was parents’ belief of Primary driving forces was parents’ belief of educationeducation

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The education explosion continued The education explosion continued after early 1960s through 90s is well after early 1960s through 90s is well above even OECD standards.above even OECD standards.• Impressive achievement of quantitative aspect of Impressive achievement of quantitative aspect of

Korean education:Korean education: More than 80 percent of high school graduates More than 80 percent of high school graduates

advance to the tertiary educational institutes advance to the tertiary educational institutes within the couple of years after graduation.within the couple of years after graduation.

• Impressive achievement of quality aspect of Impressive achievement of quality aspect of Korean education:Korean education:

Especially good in primary and secondary schools Especially good in primary and secondary schools as far as their performances on international as far as their performances on international standardized tests are concerned. standardized tests are concerned.

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This human resource situation has been This human resource situation has been conductive to the rapid growth of the conductive to the rapid growth of the export-led labor-intensive manufacturing export-led labor-intensive manufacturing sector during 60s and 70ssector during 60s and 70s

This human resource situation has continued This human resource situation has continued to work especially for the rapid expansion of to work especially for the rapid expansion of the exported heavy and chemical industries the exported heavy and chemical industries during 80s and 90s during 80s and 90s

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The Korean economy such as industrial The Korean economy such as industrial structural change toward an OECD-type structural change toward an OECD-type mature economy becomes increasingly mature economy becomes increasingly dependent on technology-intensive and dependent on technology-intensive and knowledge-intensive growthknowledge-intensive growth

• The coming age of globalization and information also The coming age of globalization and information also accelerates trends toward this direction.accelerates trends toward this direction.

• Then, will educational institutions produce the "right Then, will educational institutions produce the "right human resources" to meet the rapidly changing human resources" to meet the rapidly changing demand for labor in the coming 21st century?demand for labor in the coming 21st century?

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1) The transfer into knowledge economy (KE)1) The transfer into knowledge economy (KE)

In the 21st century, a high technology, information and In the 21st century, a high technology, information and communication industry, and a sophisticated service industry communication industry, and a sophisticated service industry will make up the core section of the economy, which means that will make up the core section of the economy, which means that society will become more knowledge and information centered.society will become more knowledge and information centered.

In Korea, it is expected that an industry based on knowledge and In Korea, it is expected that an industry based on knowledge and a service sector related to information technology will play an a service sector related to information technology will play an important role in creating job opportunities in the next five year. important role in creating job opportunities in the next five year. Meanwhile, it is also expected that the size of the industry Meanwhile, it is also expected that the size of the industry relying on labor force and monetary investment will decrease.relying on labor force and monetary investment will decrease.

3. 3. The Changes and ChallengesThe Changes and Challenges of South Koreaof South Korea

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2) Role of Information and Communication Technology (ICT)2) Role of Information and Communication Technology (ICT)In sum, a brief overview of the KE debate suggests the following:In sum, a brief overview of the KE debate suggests the following:

• The KE is substantially an effect of innovations in the ICT sThe KE is substantially an effect of innovations in the ICT sectors, taking place in a globalized marketectors, taking place in a globalized market

• The KE is more than the sum of the technological and econThe KE is more than the sum of the technological and economic processes associated with ICTomic processes associated with ICT

• The challenge of the KE lies particularly in its impact on prThe challenge of the KE lies particularly in its impact on productivity, growth and competitivenessoductivity, growth and competitiveness

• Inclusion in the global KE is essential for high standards of Inclusion in the global KE is essential for high standards of income, comparable with those of successful KEs.income, comparable with those of successful KEs.

These conclusions set the scene for a discussion of HRD issues These conclusions set the scene for a discussion of HRD issues associated with the KE.associated with the KE.

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3) The change of the employment structure3) The change of the employment structure

• The Uncertainty of the labor market is expected to increase The Uncertainty of the labor market is expected to increase with the rapid change of the economic and industrial with the rapid change of the economic and industrial structurestructure

• The shift of the labor forces will occur with globalization, a The shift of the labor forces will occur with globalization, a rapid change of the industrial structure, and the advent of rapid change of the industrial structure, and the advent of knowledge and information oriented industryknowledge and information oriented industry

• In Korea, moving to the other workplaces to suit their In Korea, moving to the other workplaces to suit their capabilities and preferencecapabilities and preference

• The variety of types of employment, such as part-time The variety of types of employment, such as part-time employment and working at home, will become more employment and working at home, will become more prevalentprevalent

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4) The advancement of tertiary education4) The advancement of tertiary education

The entering rate of tertiary education from general and The entering rate of tertiary education from general and vocational high schools has increased from 27.2% in 1980 to vocational high schools has increased from 27.2% in 1980 to 82.5% in 2004.82.5% in 2004.The advancement of tertiary educationThe advancement of tertiary education

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5) The aging society5) The aging society

Since 1960, the birth rate has decreased, resulting in Since 1960, the birth rate has decreased, resulting in the gradual decrease in the number of adolescents. the gradual decrease in the number of adolescents. The number of the population aged 18-21 has slightly The number of the population aged 18-21 has slightly increased from 310 million in 1998 to 323 million in increased from 310 million in 1998 to 323 million in 2000; however, it is expected that the figure will 2000; however, it is expected that the figure will sharply decrease to 261 million in 2005 (Korea sharply decrease to 261 million in 2005 (Korea National Statistical Office, 1996).National Statistical Office, 1996).

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The need for continuing education and life-long The need for continuing education and life-long education is increasing continuously in the labor education is increasing continuously in the labor market. A society based on knowledge and market. A society based on knowledge and information technology needs employees who are information technology needs employees who are creative and able to adapt rapid changes in society. In creative and able to adapt rapid changes in society. In order to meet such societal demands, employees order to meet such societal demands, employees should be given ample opportunity to study should be given ample opportunity to study constantly, and the recommended method is a self-constantly, and the recommended method is a self-directed learning. directed learning.

4. New Paradigm for HRD 4. New Paradigm for HRD

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ⅡⅡ. HRD systems in South Korea. HRD systems in South Korea

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1.1. HRD Base on Act of National Human ResourceHRD Base on Act of National Human ResourceDevelopmentDevelopment

1) Concept of NHRD1) Concept of NHRD

National Human Resource Development" refers to all National Human Resource Development" refers to all national efforts, including education, training and national efforts, including education, training and cultural activities, taken to develop and utilize human cultural activities, taken to develop and utilize human resources efficientlyresources efficiently

2)  Issues of NHRD Current Situation2)  Issues of NHRD Current Situation

① ① National policy National policy     - Lack of overall coordination in NHRD policies - Lack of overall coordination in NHRD policies     - The late entry of Koreans into the job market - The late entry of Koreans into the job market - Insufficient utilization of women - Insufficient utilization of women     - Imbalance in the distribution of talent- Imbalance in the distribution of talent

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② ② Public school education Public school education    - Education focused on college entrance - Education focused on college entrance - National competence outside the school - National competence outside the school system not utilized system not utilized

③ ③ Social cultureSocial culture     - Social and employment practices that put more- Social and employment practices that put more value on academic background than on value on academic background than on competence competence     - The lowest participation of adults in lifelong - The lowest participation of adults in lifelong learning among OECD countrieslearning among OECD countries

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2. Mission, Vision, and Objectives of NHRD2. Mission, Vision, and Objectives of NHRD  

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Policy Goal : Set  the Supply and Demand of Manpower in Policy Goal : Set  the Supply and Demand of Manpower in Korea, efficiently and properly - Therefore, Analysis of Mid Korea, efficiently and properly - Therefore, Analysis of Mid to Long-Term Projections for the Supply and Demand of to Long-Term Projections for the Supply and Demand of Manpower is very important(See the appendix for more Manpower is very important(See the appendix for more information) information)

- Ensure quality education at elementary, middle and high - Ensure quality education at elementary, middle and high schools to nurture schools to nurture

- Improve higher education so as to realize the goal of - Improve higher education so as to realize the goal of "Knowledge Power" "Knowledge Power"

- Establish lifelong vocational training that covers all sectors - Establish lifelong vocational training that covers all sectors of society of society

- Nurture talented people in national strategic areas so as to - Nurture talented people in national strategic areas so as to promote sustainable growth promote sustainable growth

3. 3. Policy Directions on NHRD Policy Directions on NHRD 

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- Identify and nurture talented lower-income - Identify and nurture talented lower-income

people as a way toward the integration of people as a way toward the integration of society society

- Nurture talented women and promote the - Nurture talented women and promote the participation of women in society from a participation of women in society from a strategic perspective strategic perspective

- Provide HRD tailored to regional needs - Provide HRD tailored to regional needs - Promote cultural awareness to promote - Promote cultural awareness to promote

harmony within society harmony within society - Promote exchange programs and cooperation - Promote exchange programs and cooperation

as a means toward globalization Build an as a means toward globalization Build an infrastructure that enhances efficient HRDinfrastructure that enhances efficient HRD

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ⅢⅢ. The Contributions of Education to. The Contributions of Education to Economic Growth Economic Growth

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1. Education Contributions1. Education Contributions

Table 1. Relative Contribution to Growth in South KoreaTable 1. Relative Contribution to Growth in South Korea

Contribution to Per Capita Growth(%)

Total Predicted Growth(%)

Intercept -0.70% -19%

RGDP60 -0.40% -11%

PRIM60 2.48% 67%

SEC60 0.71% 19%

GPOP6085 0.20% 5%

I6085 1.40% 38%

Actual Growth 5.89%

Predicted Growth 3.69%

(Percent Actual Growth Predicted)

63%

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Table 2. Accumulation: Contribution to Growth for Korea, 1965 1989∼Table 2. Accumulation: Contribution to Growth for Korea, 1965 1989∼

Factors ParameterEstimate

Korea(%Total Contribution

Predicted to Per-capitaGrowth)

Korea(% Total

Contribution Predicted toPer-capita Growth)

(after adjusting)BGDK .0568 1.59 (23.2) 1.59 (23.2)GER1 .0226 2.31 (33.8) 2.31 (33.8)GER2 .3094 9.59 (140.2) 4.17 (65.4)GER3 -.7253 -3.92 (-57.3) .30 (4.7)BGEMP .1478 .419 (6.10) .419 (6.6)BRD -.0587 -2.50 (-36.5) -.176 (-27.6)(Y/N)0 -.0496 -.645 (-9.4) -.645 (-10.1)Actual Growth 7.54 7.54Predicted Growth 6.84 6.38(Percent Actual GrowthPredicted)

(90.8) (84.6)

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2. 2. Results and Implications of Empirical Results and Implications of Empirical Estimations(1965-1989) Estimations(1965-1989)

●● The results show that 65 percent of the total predicted The results show that 65 percent of the total predicted per-capita growth in Korea since 1965 is due to per-capita growth in Korea since 1965 is due to expanded secondary school enrollments. Primary expanded secondary school enrollments. Primary education comes second with 36.2 percent, followed by education comes second with 36.2 percent, followed by higher education, at 4.7 percent, while physical higher education, at 4.7 percent, while physical investment contributes 24.9 percent and raw investment contributes 24.9 percent and raw unimproved labor contributes only 6.6 percent in Korea unimproved labor contributes only 6.6 percent in Korea

●● Second, the rationalization of the public sector's Second, the rationalization of the public sector's investment in schooling and training requires the investment in schooling and training requires the examination of a broad array of labor market examination of a broad array of labor market imperfections and failures, private training capacity, and imperfections and failures, private training capacity, and structural changes involving strategic skills that require structural changes involving strategic skills that require long lead times for acquisition long lead times for acquisition

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●● Key conclusions are that productivity of education is of Key conclusions are that productivity of education is of prime importance to per capita growthprime importance to per capita growth

●● The model also includes endogenous technological The model also includes endogenous technological change which together with human capital formation change which together with human capital formation leads to increasing returns to scale leads to increasing returns to scale

●● These effects of education on per capita growth are These effects of education on per capita growth are seen in three ways: (1)through the effects of seen in three ways: (1)through the effects of increased educational attainment as the labor force increased educational attainment as the labor force increases its skills and hence its productivity, (2) increases its skills and hence its productivity, (2) through the contribution of investment in higher through the contribution of investment in higher education to the conduct of R&D, and the training of education to the conduct of R&D, and the training of R&D personnel for firms as part of endogenous R&D personnel for firms as part of endogenous technical change, and (3) through the ability to technical change, and (3) through the ability to transfer technology from more advanced countries, transfer technology from more advanced countries, as well as to learn and adapt these new technologies as well as to learn and adapt these new technologies while on the job while on the job

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3. Comparison of Empirical Estimations3. Comparison of Empirical Estimations(1970-2004)(1970-2004) and and (1965-1989)(1965-1989)

FactorsParameter Estimate

Korea(% Total Contribution Predicted to Per-capita Growth)

(after adjusting)

1975~2004 1965~1989 1975~2004 1965~1989BGDK 0.1248 0.0568 3.95(39.6) 1.59(24.9)GER1 0.0061 0.0226 0.66(6.6) 2.31(36.2)GER2 0.0818 0.3094 8.67(87.0) 4.17(65.4)GER3 -0.239 -0.7253 -5.27(-52.9) 0.3(4.7)

BGEMP -0.0616 0.1487 -0.14(-1.4) 0.419(6.6)BRD -0.3989 -0.0587 2.40(24.1) -1.76(-27.6)

(Y/N)0 -0.0005 -0.0496 -0.30(-3.0) -0.645(-10.1)Actual Growth(A) 5.97 7.54

Predicted Growth(B) 9.97 6.38(B/A) (167.0)  (84.6) 

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4. Results and Implications of Empirical4. Results and Implications of Empirical Study(1970-2004) Study(1970-2004)

●● What is a new significant difference What is a new significant difference between  these 2 estimated resultsbetween  these 2 estimated results

●● Now estimates processing Now estimates processing

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IVIV. Current Situation and Direction . Current Situation and Direction of Human Policy in South Koreaof Human Policy in South Korea

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1. Upgrading Human Resource Development1. Upgrading Human Resource Development Let's explore the current status of HRD in Korea and the issues Let's explore the current status of HRD in Korea and the issues

facing it by looking at three essential areas: facing it by looking at three essential areas:

- First, development of human resources through - First, development of human resources through education and training education and training - Second, use and management of human resources - Second, use and management of human resources thus developed, their deployment in the labor market thus developed, their deployment in the labor market and re-education and re-training and re-education and re-training - Third, the infrastructure necessary for effective - Third, the infrastructure necessary for effective development and deployment of human resources,development and deployment of human resources, such as communication channels or other forms ofsuch as communication channels or other forms of close linkage between the educational and laborclose linkage between the educational and labor markets markets

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2. Traditional Vocational Education in Decline2. Traditional Vocational Education in Decline

●● The government is also trying to find a remedy The government is also trying to find a remedy to the problem of declining performance to the problem of declining performance among vocational high schools in producing among vocational high schools in producing skilled personnel. This phenomenon is not skilled personnel. This phenomenon is not due to a drop in labor demand from industry, due to a drop in labor demand from industry, but rather owes more to a sharp decline in but rather owes more to a sharp decline in applicants applicants

●● The shortage in qualified manpower in Korea The shortage in qualified manpower in Korea is generally a result of labor market is generally a result of labor market dysfunction, rather than a real lack in dysfunction, rather than a real lack in educated personnel educated personnel

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3. 3. Is Telecommuting the Future?Is Telecommuting the Future?

●● Work-from-home jobs are now being Work-from-home jobs are now being given serious consideration as a means given serious consideration as a means of tapping into a huge pool of potential of tapping into a huge pool of potential female labor. Also, demand is likely to female labor. Also, demand is likely to surge in this labor market segment in surge in this labor market segment in areas such as computer and sales-areas such as computer and sales-related work that are ideally suited to related work that are ideally suited to telecommutingtelecommuting

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4. 4. The Need to Support Working MothersThe Need to Support Working Mothers

●● The female participation rate in economic The female participation rate in economic activities stood at 49.7 percent in 2002, some activities stood at 49.7 percent in 2002, some 10 percent points lower than the OECD 10 percent points lower than the OECD average of 59.6 percentaverage of 59.6 percent

●● Career interruptions are frequent among women Career interruptions are frequent among women of childbearing age, especially those aged of childbearing age, especially those aged between 25 and 29. Statistics show, however, between 25 and 29. Statistics show, however, that more and more women of these age that more and more women of these age groups are returning to workgroups are returning to work

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5. Toward National Standards for Skills5. Toward National Standards for Skills

●● The Korean government is preparing to establish natioThe Korean government is preparing to establish national skill standards (Korea Skill Standards), to create nal skill standards (Korea Skill Standards), to create a basis for nationwide recognition of state or private oa basis for nationwide recognition of state or private organization-issued qualificationsrganization-issued qualifications

●● The new classification system will be conceived to be The new classification system will be conceived to be consistent and cross-referenceable with academic mconsistent and cross-referenceable with academic major and program classification systems, and job trainajor and program classification systems, and job training category classifications ing category classifications

●● To encourage partnership in HRD, the government is To encourage partnership in HRD, the government is working toward formulating organized guidelines for iworking toward formulating organized guidelines for industry sector or business associationled partnershipndustry sector or business associationled partnerships for evaluating qualifications and competencys for evaluating qualifications and competency

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6. Closely Linking Academic and The Workplace6. Closely Linking Academic and The Workplace

●● To promote closer collaboration between the To promote closer collaboration between the educational and labor markets, the government is educational and labor markets, the government is preparing the necessary infrastructurepreparing the necessary infrastructure

●● No infrastructure for creation, use and diffusion of No infrastructure for creation, use and diffusion of

knowledge can be complete or viable without a knowledge can be complete or viable without a quality management system for human resources. To quality management system for human resources. To assist the construction of a human resource quality assist the construction of a human resource quality management system, the government is evaluating management system, the government is evaluating the performance of educational and training the performance of educational and training institutions and their programs, in order to identify institutions and their programs, in order to identify their strengths and weaknesses and to design a more their strengths and weaknesses and to design a more efficient educational and training model efficient educational and training model

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V.V. Korean Labor Takes a Global Korean Labor Takes a Global PerspectivePerspective

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- Korean workers are now armed or becoming armed with - Korean workers are now armed or becoming armed with necessary prerequisites for globalization. Their foreign necessary prerequisites for globalization. Their foreign language proficiency has substantially improved, and language proficiency has substantially improved, and they are more creative they are more creative

- International mobility in the labor market is rapidly rising - International mobility in the labor market is rapidly rising in Korea. Amidst a continuing inflow of cheaper foreign in Korea. Amidst a continuing inflow of cheaper foreign workers, professional Korean workers migrate abroad in workers, professional Korean workers migrate abroad in growing numbers growing numbers

●● Major changes are occurring to the structure of labor Major changes are occurring to the structure of labor demand in the countrydemand in the country

- Demand for innovative manpower is on the rise- Demand for innovative manpower is on the rise - The growing importance of China and Northeast Asia as - The growing importance of China and Northeast Asia as

an economic power is another factor making the outlook an economic power is another factor making the outlook bright for Korea's labor sector bright for Korea's labor sector

- Koreans as a whole are favorably disposed toward - Koreans as a whole are favorably disposed toward foreign investors and foreign corporationsforeign investors and foreign corporations

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- Labor/management relations, after some hitches - Labor/management relations, after some hitches and bumps, have now entered a stable phase. and bumps, have now entered a stable phase. Except for a handful of large corporations, at Except for a handful of large corporations, at most workplaces, labor and management have most workplaces, labor and management have successfully built highly cooperative relationships successfully built highly cooperative relationships and viable modes of interactionand viable modes of interaction

- The country's industry/university cooperation The country's industry/university cooperation system, now at its mature stage, is effectively system, now at its mature stage, is effectively fueling innovationsfueling innovations

- Active efforts toward building industry clusters, - Active efforts toward building industry clusters, widely participated in by foreign firms, are widely participated in by foreign firms, are underwayunderway

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VI. A New Paradigm of Labor Supply VI. A New Paradigm of Labor Supply & Demand& Demand

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●● Just as the mass production system has revealed its Just as the mass production system has revealed its limitations as a means to further the progress of an limitations as a means to further the progress of an industrialized society, conventional forms of human industrialized society, conventional forms of human resource development are now faced with the resource development are now faced with the necessity of fundamentally revising their supply and necessity of fundamentally revising their supply and demand structures demand structures

●● Particular efforts are directed toward qualitative Particular efforts are directed toward qualitative improvement in high-tech labor, as these human improvement in high-tech labor, as these human resources will lead the national enterprise to develop resources will lead the national enterprise to develop new growth-engine industries, and in technical new growth-engine industries, and in technical manpower in the production segment at the forefront manpower in the production segment at the forefront of industry. No less important is the capacity for of industry. No less important is the capacity for efficient labor supply in a timely fashion where efficient labor supply in a timely fashion where needed. These measures are critical components of needed. These measures are critical components of Korea's effort to narrow the gap between itself and Korea's effort to narrow the gap between itself and more advanced industrialized nationsmore advanced industrialized nations

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●● The government, to back up its policy measures with The government, to back up its policy measures with public support, is launching communications public support, is launching communications campaigns to increase public interest in science and campaigns to increase public interest in science and technology, and is working to build a state-sponsored technology, and is working to build a state-sponsored system for developing human resources and system for developing human resources and ensuring their effective distribution in the corporate ensuring their effective distribution in the corporate sector. To boost national competitiveness through sector. To boost national competitiveness through new high-tech growth industries and progress in new high-tech growth industries and progress in science and technology, the government is creating a science and technology, the government is creating a state-level resource to support universities in the state-level resource to support universities in the development and deployment of scientific and development and deployment of scientific and technological personnel. The government's effort to technological personnel. The government's effort to introduce greater flexibility in the HRD system in introduce greater flexibility in the HRD system in science and technology has been in progress for science and technology has been in progress for some time. Its initiatives to redesign the national HRD some time. Its initiatives to redesign the national HRD system by eliminating existing inefficiencies and system by eliminating existing inefficiencies and updating obsolete areas to better meet the labor updating obsolete areas to better meet the labor demand in today's industry have already produced demand in today's industry have already produced concrete results concrete results

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VI. ConclusionVI. Conclusion

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1995(GDP: 10823$ )

19.4% University

44.1% Sr.Sec

16.2%Jr. Sec

20.2%Primary

Illiterate2001

(GDP: 8900$ )

24.6% University

44.4%Sr. Sec

14.3%Jr. Sec

16.7%Primary

Illiterate

1985 (GDP: 2229$ )

Illiterate

10.5% University

31.5% Sr.Sec

21.1% Jr.Sec

36.8%Primary

19.3%Sr. Sec

22%Jr. Sec

36%Primary

Illiterate16.3% 1975

(GDP: 592$ )

6.4% University

South KoreaSouth Korea

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Educational Structure of Indonesia’s Labor Educational Structure of Indonesia’s Labor ForceForce

6.4% University6.4% University

19.3% 19.3% Sr. SecSr. Sec22% 22%

Jr. SecJr. Sec

36% 36% PrimaryPrimaryIlliterateIlliterate16.3%16.3%

19751975(GDP: 592(GDP: 592$)$)

South KoreaSouth Korea

32.7%59.9% at Least

4 Yrs. Primary

Illiterate26.4%

1982

.9% Acad./University

6 Yrs

6.2%Jr.Secs

6.6% Sr.Sec.

16

12

9

64

0

33.2%63.1% at Least

4 Yrs. Primary

Illiterate18.5%

1986

1.4% Acad./University

6 Yrs

8.1%Jr.Secs

8.9% Sr.Sec.

33.7%59.1% at Least

4 Yrs. Primary

Illiterate15.3%

1989

2.3% Acad./University

6 Yrs

10.1%Jr.Secs

13% Sr.Sec.

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The best way to successfully consolidate HRD policy The best way to successfully consolidate HRD policy issues is to set up a "policy issue body" that will issues is to set up a "policy issue body" that will outlive the current government or regime. Thereby, a outlive the current government or regime. Thereby, a more consistency and continuity in the policy issue more consistency and continuity in the policy issue management could be politically possible and management could be politically possible and institutionally guaranteed, thus more successful institutionally guaranteed, thus more successful consolidation of policy issue could be generated.consolidation of policy issue could be generated.

ConclusionConclusion

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Thank youThank you

Chang-Won JangChang-Won JangE-mail : [email protected] : [email protected]