Chapter III. Chapter III. Vocational Training System
B. Delivery System
5. Considerations
In general, the vocational training system in Korea is analyzed as a best practice. However, there are some problems such as blind spots where access to training opportunities is limited and decreasing re-employment rates of trainees who have completed vocational training after the system was changed to the Naeil Baeum Card system. There are challenges to deal with for the vocational training system to take a root as a sustainable system in the future.
First, as employment types are diversified, the blind spot issue is remain unsolved. Irregular workers such as temporary and part-time workers increase rapidly, but the wages of an irregular worker is only 33.8% of a regular worker's wages as of March
2011. Plus, very few irregular workers are covered by employment insurance. Moreover as the untypical labor (dispatch, outsourcing, special type labor, daily labor, and home-based labor) increases, it is difficult to implement a unified training policy. In addition, a new training demand is created since workers under special type-employment contracts who are not employers or employees increase.
Second, the imbalance between manpower demand and supply is improperly handled because the focus of vocational training is not placed on workforce demand from industries and companies.
The Naeil Baeum Card System has produced positive results such as the expansion of training choices for job-seekers and the increase of the training market. However, training based on demand for manpower and training from industries is not sufficiently conducted. Especially, as levels of industrial development and types of manpower needed are different by region, vocational training policies are required to balance the disparity. Training consultation is becoming systematized, but still there is a gap between industrial workforce demand and choice of training courses by the unemployed.
Third, employment insurance was integrated into the job skill development program, but the integration did not attract corporate investment in training as expected. This proves some scholars' argument that the vocational training system still works as a regulation against companies. However, companies have a high dependency on the government in terms of human resource cultivation. SMEs suffer from a lack of skilled workers and
experienced and skilled employees of SMEs are snapped up by or move to large companies frequently. Meanwhile the necessity of training for vulnerable groups such as irregular workers and unemployed people is growing. Given that vocational training is characterized as public goods, an in-depth study on the validity and propriety of the government's intervention in the training market is required.
Consequently, it has been evaluated that the vocational training system in Korea has successfully reflected the industrial manpower demand from the macroscopic viewpoint, but failed to fully deal with future industrial structure changes such as the convergence among sectors stemming from the advancement of industrial structure and development of information and communications technology. Instead of introducing policies demanded by the era at that time, the system postpones implementation of the policies and sticks to the old paradigm such as basic training, investment in physical infrastructure, supplier-centered perspective, training focusing on regulations, large company-centered training, etc. At this juncture, innovative vocational training policies should be actively developed to improve the effectiveness of training.
The last point to consider is the effectiveness of the Korea vocational training model. The vocational training system was selected as a best practice and benchmarked by many developing countries. In the early phase of development, numerous public vocational training facilities were established in Korea thanks to help from international organizations and developed countries. With the facilities developed, in a short period of time, Korea was able
to set up a system to supply outstanding manpower needed for economic development. However, in order to make the Korean case a development model for developing countries, it is required to establish and implement policies differentiated based on each country's social and economic situation, analysis on overall industries and the design of development strategies, and their national circumstances.
References
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Skills Development Strategy for Poverty Reduction and Sustainable Growth: Korean Case Studies, Korea Research Institute for Vocational Education and Training, Ra, Young-Sun et al. 2010
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