Strategy of Vocational Competency Development Training Innovation for the 4th Industrial Revolution - May 2019 Professor Jong-Kil Park KOREATECH
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Strategy of Vocational Competency Development Training
Innovation for the 4th Industrial Revolution
May 2019
Professor Jong-Kil Park
KOREATECH
I.N.D.E.X
1. Current Vocational Competency Development
Training(VCDT) in Korea
2. Changes in Circumstances Surrounding
VCDT
3. Limitations and Issues of the Current
System
4. Innovation Strategy for the 4th IR
2
Current Vocational Competency Ⅰ Development Training in Korea
Adoption and Growth of
Ⅰ Vocational Training
Vocational training that drove ‘The Miracle on the Han River’
Key to rapid economic development is human resources development
Ⅰ Vocational Education and Vocational Training
Relations between VE and VT
• Korea like other Asian countries,
VE and VT are administered by different ministries : MOE,MOEL
Ⅰ Vocational Education and Vocational Training
Formal education system
• Korean education system has 6-3-3-4 pattern
Ⅰ Development of vocational training VE alone could not produce sufficient manpower in early industrialization stage -Gov. intervene and took the lead in training Vocational Training Act(1967) : cultivating manpower through public training, subsidizing cost of VT conducted by company -Number of companies conducting VT was sharply decreased after Gov. cut down subsidies due to budget limit in 1972 ⇒ the reason of introducing mandatory system Act on Special measures for VT(1974) : mandatory training by private business(penalty)→ Basic Act for Vocational Training (levy system,1976) Employment Insurance Act(1995) : VCDT under EI system
Ⅰ Development of vocational training Supporting business(using EIS fund) from regulative authorities -Mandatory training was abolished ※ Korean EIS consists of Unemployment Benefit, and Employment Stabilization and Vocational Competency Development programs. That’s why it is called employment insurance, not unemployment insurance Worker’s Vocational competency Development Act(2004) -Focus on improving competency for the employed -Autonomous training of the company centered on demanders -Establish life-long vocational competency development VT system change : Subsidizing → Obligation(Penalty, Levy) → VCDT Project under EIS
Ⅰ Vocational Training and Employment Insurance
Structure of EIS and Premium Rate
Program under EI Premium Premium
(employee) (employer)
Unemployment Benefit Program 0.65% 0.65%
Business under 150 - 0.25%
employees
Business more than 150 - 0.45%
employees(Preferential
company)
Employment Business 150~1,000 - 0.65%
Stabilization employees(excluding
and VCDT preferential)
Program
Business more than1,000 - 0.85%
employees
Ⅰ Vocational Training and Employment Insurance
VT under EIS
Before EIS After EIS
- Mandatory training by private - Pay EI premium, and paid back
business(or levy) cost after conducting training
- Some business such as - All business
manufacturing and
construction (not all business) - All companies with 1 or more
employees
- Companies more than 300
employees - Training is conducted under EIS
as active market policyⅠ Vocational Competency Development Programs
Training for unemployed(as of 2018)
Learning Card for job seekers:
268.4 billion won (168,293 participants)
Training for National Essential and Strategic Industries
: 426.1 billion won(61,366 participants)
Private
sector
training Training for Leading the 4th Industrial Revolution :
Training 11 billion won
for un- Leading training institute: 20, training courses: 43, participants: 921 persons
employed Specific Training for general high school students who
are not willing to enter university
69.2 billion won(8,307 participants)
Korea polytechnics:
112.9 billion won
Public Trainee: 28,990 persons (technicians and craftsmen courses)
training
Korea University of Technology and Education:
24.5 billion won
Trainee: 4,870 personsⅠ Vocational Competency Development Programs
Training for employed(as of 2018)
Training by Employers (direct/commissioned):
435.1billion won, Training Plan: 2,100,000
Support Work - Learning Dual System: 459.8 billion won
for No. of participating companies: 7,680 , No. of learning workers: 41,121
Employer
Training Support for Establishment of Learning Organization:
1.8 billion won, Support plan: 91 companies
Training for
employed
Core Vocational Competency Enhancement Training:
(training for
improvement)
Learning Card System for Employed:
Direct 94 billion won, Training Plan: 470,000 persons
Support for Support for the Self-employed:
employed
1.3 billion won ,Training plan: 3,000 persons
Consortium Training for National HRD:
119.6 billion Won, Training plan: run 143 joint training centers
Joint
training Regional and industrial specific training:
34.8 billion won ,Training plan: 50,000 personsⅠ Vocational Competency Development Programs
Learning Card System for My Job
• The Learning Card System for My Job is the most representative form of Korean VT
• It provides job seekers with a certain amount of funding(US $ 2,000) for training
expenses to allow them to attend VT programs
• 20 to 95% of the actual training expenses will be supported(the rest is self paying)
• But those who are employed or start up their own business in related to training
field within 6 months will be reimbursed self-payⅠ Vocational Competency Development Programs
National Essential/Strategic Industry Training
• Government designates some industries which are important for economic development and
suffered from labor shortage such as machinery, metals, electricity, and power as NESI
• 122 occupational categories were chosen including occupational categories preparing for the 4th
industrial revolution such as IoT, big data, Fin-Tech, etc
• Unlike the Learning Card System, this system provides all training expenses(no limit of training
cost, no self-pay)Ⅰ Vocational Competency Development Programs
Training for employed
• If employer conducts training for their employee, he(she) will get the reimbursement of cost from
Employment Insurance Fund(Employer Training)
-100% for SME, 40% for big company
• There are also special policies for SME such as consortium training, establishment of learning org,
etc.
• Vulnerable workers such as irregular, aged(45 years old or more) or working in SME could apply
for Learning Card to take training outside(Learning Card for employed)Changes in Circumstances Ⅱ Surrounding Vocational Training
Ⅱ Changes in Circumstances Surrounding Vocational Training
Low growth of the Korean economy
• GDP growth rate of 1.0% by 2060 (OECD)
Low growth
• Employment elasticity was 0.416 in 2016, the lowest in 5
years (Korea Labor Institute)
Reduction in economically active population
• Higher retirement age(OECD 63∼64 vs Korea 70∼72)
Low birth rate,
aging • The number of working age population (15∼49 years) will decrease by
300,000 every year from 2020 (Korea Statistics)
Paradigm shift in economy and social environment for
intelligent informatization
• 170,000 people will be required in 12 new industries by 2020 (Korea
The 4th Institute for Advancement of Technology).
Industrial
Revolution • 80% of doctors will be replaced by big data
(Vinod Khosla, founder of Sun Microsystems)
• 90% of news articles will be written by a computer by 2030. (Christian
Hammond, CTO of Narrative Science)Ⅱ Mega Trend: 4th Industrial Revolution
“The 4th industrial revolution＂ is the most
fundamental changes for vocational training
This is the era of the 4th industrial revolution
• The cycle of technology change is shortened extremely, and the 4th industrial revolution has just begun.
The 1st The 2nd The 3rd The 4th
industrial revolution industrial revolution industrial revolution industrial revolution
The 4th industrial revolution: from
18th century 19th to early 20th century Late 20th century 2015
Knowledge and Ambient intelligence
Mechanization based on Mass production based on information revolution revolution based on
steam engine electric energy based on computers and IoT/CPS/artificial
internet intelligence
Innovate society with industrial
Emergence of global IT structure system based on
Mass production using
The British textile industry companies led by the US with hyper connectivity and hyper
conveyor belt with electricity
became a huge industry based internet and smart revolution intelligence among people,
supply in a plant
on steam engine. things and space.Ⅱ Mega Trend: 4th Industrial Revolution
The 4th industrial revolution is reshaping the labor market!
Gig workers
Google “Flexible working Silicon valley (New type which is neither a worker
condition” “start-up culture” nor a user
Accelerated changes Expansion of New venerable
in jobs industries group
· Various types of · 65% of current · Concerns about anti-
employment and ways elementary school industrialization due to
of working students will work in the increased
jobs that do not exist unemployment and
· Basic requirement is
now(WEF, 2016) aggravated inequality
flexible and elastic
(Professor Carl Benedikt
labor market · Increased importance of
Frey of Oxford
education and training to
University)
accumulate human
resourcesⅡ Mega Trend: 4th Industrial Revolution
The 4th industrial revolution is reshaping the labor market!
Possibility of technical unemployment
Decrease in 47% of jobs in the US will disappear due to advancement in automation.
employment (Frey&Osborne, Oxford University)
Increase Create demand for new products + improve work productivity
in employment Bessen(15): No. of ATMs increased from 100,000 in 1995 to 400,000 in 2000 but the number of tellers,
whose number was expected to decrease, increased by 2 % every year.(change in work: simple money
handling-> financial product marketing)
Common ground: structured work will decrease (regardless of physical or knowledge labor), the
work that requires social intelligence (Frey and Osborne) cannot be replaced easily.
12% 12%
Share of jobs that are
10% 9% 9% 9% 6%
highly likely to be
(26th out of 26 countries)
replaced by a robot
(OECD, 2016)
Germany Spain UK Average US France KoreaⅢ Limitations and Issues of Current System
Ⅲ Limitations and Issues
Vocational training has focused on nurturing low skilled people while
the demand for highly skilled people increased.
Nurturing just
low skilled
labor • 170,000 human resources are required newly in promising industries by
2020 (Korea Institute for Advancement of Technology)
• Current long-term training focuses on low level of technology and skills.
* Participation ratio in national training: 48% for high school graduates, 18% for
college graduates, 34% for university graduates
Long-term training is required even after hiring university
Difference graduates
between
education and • Invest about 60 million won per 1 university graduate new employee
field (Korea Employees Federation)
• Many university students depend on private education to improve their
skills.
* IT sector trainees responded that even though they majored in IT in university, the
need to have training to work in that field (field visit to Bit Academy)Ⅲ Limitations and Issues
Competency of the late middle aged people
Lack of core
(55~65is at the lowest among OECD countries)
competency of • The competency of the late middle aged people is at the lowest among OECD countries
the late middle and gap to that of the youth is severe.(Result of OECD adult core competency
aged people assessment)
Competency gap between the youth Ratio of those who are lack of
and the late middle aged (points, skills by age (%)
OECD comparison)
Government-led Lack of incorporating market condition as training is led by the
training system government.
• As the government leads the allocation of training, the training courses do not
reflect the demand in the market properly.
• Right of selecting training course is limited as the information on training
courses and results is not disclosed fully.Ⅲ Limitations and Issues
4th industrial Gap between education
Low level of training
revolution And field
· New technology and · Need to reflect demands · Need for training
jobs created in industrial fields into program for highly
· Existing industries education and training educated job seekers
become obsolete ⇓ ⇓
⇓ · NCS-based education · Establish a training
· Establish a lifelong- and training system for nurturing
learning system · Adoption of training to professionals
· Respond flexibly to improve the capability to
new technologies solve problems.
Innovation of VCDT!
· Korean government announced 『Strategy for VCDT Innovation for
the 4th Industrial Revolution』 on April 10th 2019Ⅳ Strategy for VCDT Innovation
for the 4th IRⅣ 1.Eliminating barriers to education and training opportunities
1) 「Life-long Learning Card」
• All citizens including unemployed and irregular workers will be given learning card
worth US $ 3,000∼5,000 valid for 5yrs
※ Differential support through examination of applicant’s income level,
academic back ground, career development plan, etc
※ Expected Number of issuers(cumulative, thousand):
600(‘20)→1,400(‘22)→2,200(‘24)
• Provide real time information of training history, account balance, etc.
through PC or Mobile
• Gradually raise the self pay rate to 30∼40% to increase the accountability of
trainees
※ The current self pay rate : 25% for unemployed training,0∼20% for employee trainingComparison of current and future L/C
classification Current L/C Life-long L/C
Target beneficiary - Unemployed - All workers including unemployed,
- Employed(Especially for workers employed, special type workers, etc
in SME and irregular workers)
Valid period - 1 yr : unemployed - 5 yrs
- 3 yrs : employed
benefit - 2mil∼3mil Korean Won -3mil ∼ 5 mil Korean Won
- Training allowance only for -Training allowance only for
unemployed (116 thousand won) unemployed (116 thousand won)
Self pay rate - Average 25 % for unemployed - 0∼Average 40% upon income
training level, academic background, etc
- 0∼20 % for employee trainingⅣ 1.Eliminating barriers to education and training opportunities
2) Building Platform for Smart Education and Training
• Build 「Smart Vocational Training Platform」 to respond to growing online training demand
- to make it easy and convenient for people to search and watch free e-learning
contents
- Theoretical classes are conducted on-line, and practical training is conducted
off-line to enhance the effectiveness of vocational training
※ Integrate current e-KOREATECH system into platform
• Activate on-line knowledge sharing system through Korean lectures(K-MOOC)
- to meet the demand for life-long education by publishing excellent lectures of
higher education institutions on-line
※ K-MOOC : Korea Massive Open Online CourseⅣ 1.Eliminating barriers to education and training opportunities
3) Education to promote equal start line
• To improve educational unfairness due to economic conditions
- Gov. will introduce free high school education from autumn semester of year 3
students this year to whole students in 2021
- and abolish university entrance fee (∼’22)and expand national scholarship
Free high school Abolishment of National
education : Total approx.
+ entrance fee : + scholarship : =
4.8mil Won 23 mil Won
0.8 mil Won 17.4 mil WonⅣ 1.Eliminating barriers to education and training opportunities
3) Education to promote equal start line
• Strengthen future core competency education from early and middle/high school
-Provide a foundation for developing ‘logical thinking’ and ‘creative
problem solving skills’ through mandatory SW and convergent education
※ over 17 hours for 5th∼6th grade of elementary school(‘19∼),over 34 hours for
1st∼3rd grade of middle school (‘18∼)
-Adopt a high school credit system to graduate by selecting and completing subjects
according to their aptitude and career
※ Meister school(’20) →General high school/Specialized school(‘22) →Full implementation(‘25)
• Provide career opportunities to actively cope with the world of job, and nominate leading schools
for experiential start-up education(30 schools in ‘19)Ⅳ 1.Eliminating barriers to education and training opportunities
4) College education for workers who got a job after graduating
from high school
• Expand the support of college tuition for high school graduate workers
- Full support of tuition for workers working in SME and studying at college
※ 29 billion Won(‘18) →58 billion Won for 9,000 workers (‘19)
• Designate as leading colleges for ‘work-first, college-later policy’ and support them to
meet regional life-long learning needs (15 colleges each large area
-Designated colleges will find out the demand of various vocational education for
vulnerable people such as employee in SMES and self employed, and respond it
• Put 「Early Employment Contract(between Company And College) Department System」
in operation
-Students are employed by contacted companies after learning basic major ability and
field work in 1st grade, and then enhance their job competencies in 2nd and 3rd grades
※ 17 departments in 5 colleges ,516 companies, 427 students(‘19)Ⅳ 2.Educating future talents to lead innovation
1) Talents for leading industry
• (AI) Establish AI department to cultivate advanced talents with world-class research
capabilities(cultivating 880 talents from 10 universities by ‘22)
- Develop curriculum to train professional manpower specialized in smart
manufacturing( 2 curricula in ‘19, cultivating 160 specialists during ‘19∼’22)
• (SW) Strengthen basic and convergence education through SW-centered
university(18,000 persons during ‘10∼’22), and establish an innovative non-degree
course SW-institute(1,750 persons by ‘22)
• (Energy New Industry) Cultivate 15 thousand high quality man powers by ′22
responding to the paradigm of energy industry, such as spreading of renewable
energy and promotion of hydrogen economy
• (Bio) Train practitioners in pharmaceutical manufacturing ,medical devices, food,
and bio-chemistry, and cultivate the convergent physician scientist who acquired
knowledge of other science such as basic science and IT(10,000 by ‘22)Ⅳ 2.Educating future talents to lead innovation
2) Talents for core industries
• Develop talented researchers in the promising areas to lead the innovation growth
of the core industries
※ 31 areas such as semiconductors, displays, future cars, smart vessels, offshore plants, drones, and Robots
-(Semiconductors/Displays) Designate excellent graduate schools with the latest
equipment and excellent faculty as the base centers and train design professionals
who are rapidly growing in demand
-(Future cars/ship building) Given the environment-friendly and smart trend, expand
‘Future lab’ capable of convergence education to major universities
nationwide(2,200 persons ‘19∼’22)
-Expand and reorganized ‘BK 21 Projects’ supporting graduate students in promising
fields in the futureⅣ 2.Educting future talents to lead innovation
3) Smart Factory Talents for SMEs
• Need to secure professional man power to support smart manufacturing innovation of
SMEs in response to the goal of spreading 30,000 smart factories(∼’22)
• Demand of smart factory specialists : estimated about 100,000∼120,000
• Collaborate with ministries and agencies to support the transition of jobs of existing
employees and cultivate new manpowerⅣ 3.Nurturing manpower in response to industrial demand
1) Work-learning dual system
• High school level
-Introduce the promising occupation area of the 4th industry to the
‘Industry-School Integrated Apprenticeship School’ so that students of
specialized high school can lead the future industry
※ Students in specialized high schools are employed in their 2nd grade by companies
to participate in vocational education and training, going from school and to
company
※ 9,312 students in 163 specialized schools(‘18)
-Spread the autonomic enterprise model of German Ausbildung
※ Specialized students who are expected to graduate participate in the training
course tailored to the companyⅣ 3.Nurturing manpower in response to industrial demand
1) Work-learning dual system
• College level
-Expand college level work-learning dual system in which students in
their last year could improve job competency by early employment
※ 8 colleges in ‘19→16 colleges in ‘22
-Expand P-Tech which train the latest convergence skills to students who
complete high school apprenticeship course
※ P-Tech
(Pathways in Technical Education oriented Convergent High-Technology) :
30 schools in ‘19→ 60 schools in ’22
• University level
-Expand IPP(Industrial Professional Practices) program
(37 universities in ‘19)
※ Long-term systematic field training with school and companyⅣ 3.Nurturing manpower in response to industrial demand
2) Private-led vocational training
• Introduce new training system that industry itself conduct training through joint training center
-ISC(Industry Skills Council) itself designs training course that reflects
the industry demand, and conduct joint training by a good institution
designated as a joint training center(7,500 trainees in ’20 → 15,000 by
20 training centers in ’22)
-Enhance the skill level of employees, support job transition, and provide
high-skilled technicians by operating advanced training courses such as
electronics and information field
• Introduce new model utilizing the infrastructure of high-tech private companies to cultivate
excellent technicians
-Select leading companies with advanced technologies such as AI and Big
Data and infrastructure to train young job seekers(600 trainees ‘20 →
15,000 in ‘22)Ⅳ 3.Nurturing manpower in response to industrial demand
3) Strengthen new technology training for workers
□ In order to maintain the jobs of middle-aged workers,
it is necessary to re-train them to digitize existing business and to
incorporate new technology while with the development of
technology the time limit for the circulation of knowledge and
information is shortening
→ Re-organize current skill enhancement training program provided
2.7 million workers a year to new technology oriented program
※ Training in new technology sector : 3.6%(‘18) → 15%(‘22)Ⅳ 3.Nurturing manpower in response to industrial demand
3) Strengthen new technology training for workers
• Reorganize and expand training centered on new technologies
- Reorganize joint training for workers in SMEs to new technology training
※ The support for current main part of training such as business will be reduced while the support
of training and infra cost for new tech such as bio and pin-tech will get preferential treatment
• Support for training expenses up to 3 times for the employers who provide high
skill and new technology training for their employees
• Provide training in new technology fields reflecting regional characteristics by
selecting excellent training institutions in industrial complexes
• Support customized consulting service for SMES trainingⅣ 4. Establishing Performance-based Society
Focusing efforts to spread the use of national
competency standards (NCS) in the field
NCS: Systemize competencies required to perform jobs in the industrial fields (knowledge, technology and
basic attitude) by industry and level (Article 2 of Framework Act on Qualifications)
Job implementation specifications for a certain job and human resources
development guideline in the field
Industrial field NCS Develop human resources
suitable for the field
Knowledge
Technology Knowledge Recruitment
Knowledge based on
Knowledge Demand Training competency
Attitude from the Applic- and
industry Technology ation personal
Technology management
Attitude
Technology
Career Qualifications
development
Technology Attitude Attitude
Knowledge1) Level
- Benchmark from international standardization(EQF, AQF, QCF…)
→ 8 level(knowledge, skills, its application)
2) Size
- composed of about 10~15 competency unit in 1 division of NCS
(composed to about 3~5 elements of competency unit in 1 competency unit)
→ 1,001 NCS
- composed of 15~50 hours to study per 1 competency unit
- amount of learning differs depending on theory learning, practice, OJT and self study
※ core competency(e.g. communication, problem solving, interpersonal skills, etc) is
selected separately
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