Presentation on theme: "Korea Research Institute for Vocational Education and Training"— Presentation transcript:
1Korea Research Institute for Vocational Education and Training IDB: Transformation: Skills for Productivity, in Chile Financing Model for Training in KoreaJisun Chung (June 5, 2014)Korea Research Institute for Vocational Education and Training
2Educational System of Korea Elementary SchoolMiddle SchoolHigh School Vocational HSJunior CollegeUniversityMOEMOEL (EI)Compulsory EducationPolytechnicsVTIsKUTVEVTVET SectorAgeSchool Year24181622129156
3Trajectory of Educational Expansion Step-by-step attainment of universal education:primary → secondary → higher (tertiary) educationTrow, “Forms and Phases of Higher Education”: Elite(<15%) → Mass(15-50) → Universal(>70%)-101030507090197019751980199019952000200320102012PrimaryLower SecondaryUpper SecondaryTertiaryEliteMassUniversal
4Vocational Training and Ministry of Labor Vocational Training Act (1967)Act on Special Measures for Vocational Training (1976)Employment Insurance Act (1995)Vocational Training Promotion Act (1999)Employment Insurance Scheme under the authority of the Ministry of Employment and Labor (MOEL)Three pillars: 1) Job Skills Development Program2) Employment Stabilization Program3) Unemployment Benefits
5Number of Trainees who underwent Vocational Training during 2nd(1967~1971) to 7th(1992~1996) National Economic Development PlanstotalIn-plant training10155
7Changes in GDP per Capita since 1960s 26,20426000240002000400060008000100001200014000160001800020000‘70‘75‘80‘85‘90‘95‘00‘05‘10‘11‘60‘6510511,47121,529100-times increase inGDP per capita($)22000‘13‘14: 100-times increase in GDP per capita only in 30 years. Drastic development as shown in the graph
8Classification of the Korean VTIs VTIs/RemarksTotal2,777PublicVTIsSub-Total79Public Org.40KOPO, KUT, KEPAD (Korea Employment Promotion Agency for the Disabled)Local Govern.8Seoul, Other ProvincesMin. of Justice31Inmates’ Vocational CompetencyPrivate2,698Trg. Corporation55Non-profit CorporationsWRD CenterWomen Resources Development51Women’s Vocational CompetencyMOEL Designated823Individual Designated VTIs, KCCI (Korea Chamber of Commerce and Industry)Others1,769Companies or Associations, etc.
9Polytechnics in KoreaThe KOPO, head quarter of Korea Polytechnics, was separated from HRD Korea that established by MOL, in 1998.The KOPO is the biggest VT institution in Korea and trains about 20,000 technicians a year and over 85% of graduates are employed at enterprises.PolytechnicsHigh SchoolGraduates2years1 ~ 2years1month ~ 1yearCollegeCraftsmanResidentsEngineerTechnicianMasterentergraduateBachelor DegAssociate DegNo Degree[Training Courses]
10Present Status of KOPOShort-term Training Courses : Up-grade, Residents, Inferior, Women, etcMost of Training Dep’t concentrated on Technology Field.
12Response of 223 companies Needs of industries for Education 87 75 72 7068PracticeField trainingcreativityCurriculummeeting needsTeachingmethodExperienceof staffs
13Industry & Academia Cooperation Companies pay high cost for reeducation of new employees20 months, 55,000 US dollars per new employeeTo minimize this reeducation cost, companies cooperate for college education- development of curriculum and textbook together, lecture, seminar, field training, internship
14Polytechnic Colleges Policy Specialized Training PoliciesFL SystemFactory Based Learning : Same Training Circumstance as FactoryTraining Curriculum based on Job/task AnalysisExtension of Convergence TechnologyTechnology combined with other Technology or Human StudiesStrong Relationship with CompaniesVarious Affairs based on School-Industry CooperationOne Professor connected with Ten CompaniesCompany centered Customized Training
15Employment Insurance as financial support mechanism for Training ☞ Employment Insurance (funding project) was introduced in 1995 by the Ministry of Employment and Labor as a social safety net.The EI is a comprehensive labor market policy and a social security system including employment security and vocational skills development programs- aimed at preventing unemployment and promoting employment as well as a traditional unemployment insurance program providing unemployment benefits.
16Levy-Grant SystemEvery company is obligated to pay the imposed training fees of the employees, and the government pay back when the training implemented.Employer, employees and the unemployed are free to provide or receive vocational training, and the EIS Fund grants subsidies for the training implemented.More favorable for large enterprises;The return rates is flexible for the SMEs which are vulnerable in terms of conditions to implement training.
17Employment Insurance for all workers Support for skills development of the employers, employed,job seeker, self-employedCoverage: All Workplaces- Since October 1998, all workplaces with one or more employee have been subject to the Employment Insurance System.Companies implement training for the employees autonomously, government induces and encourages the companies to develop human resources needed by supporting financially.
19Prerequisites for Success of EI National consensus on the necessity of EIFinancial stability of EI fund is important for overcomingunexpected high unemployment, and unemployment benefit scheme should be designed to guarantee financial stability of EI fund.Development of labor market infrastructure is essential forsuccess of EICooperation among related ministriesEI is not a perfect safety net for the unemployed.Complementary systems are necessary.
20Building a social consensus on optimal level of contribution rates - Employers ask to lower contribution