Chapter III. Chapter III. Vocational Training System
A. In-Service Training
3. Major Institutions and Policies
2 days or 16 hours.
Part of the training expense is refunded by employment insurance. SMEs are given preference in terms of the training expense support ratio and the support fund limit considering the difficulty of conducting voluntary training programs due to unfavorable operation conditions or risk of disruption to business.
<Table Ⅲ-2> shows the statistics of employer-provided training for employees based on the size of businesses which implemented the training in 2011. It suggests that large size businesses with 300 or more employees are more likely to conduct the training (businesses with 300 or more employees: 54.0%, businesses with fewer than 300 employees: 46.0%). The most frequent types of businesses which conducted the training were in the education service (30.6%), manufacturing (28.9%) and business service (10.3%) sectors. The number of training programs conducted suggests that employees in the manufacturing (34.1%), education service (20.0%) and financial, insurance and real estate (14.3%) industries participate in the training most actively in the order listed.
<Table - 2> Status of Employer-Provided Training for Employees by the Corporate Size(excluding training under paid-leave)
(unit: persons, KRW, MN) Classification
2010 2011
Total Fewer than 300
300 or
more Total Fewer
than 300
300 or more Number of
Trainees 3,764,139 1,487,940 2,276,199 3,004,691 1,374,532 1,630,159 Amount of
Support Fund 346,763 142,202 204,560 284,890 129,425 155,466 Source: Employment Insurance White Paper, Ministry of Employment and Labor 2012.
(2) Training under Paid-Leave Supported by Business Owner The training under paid-leave supports business owners who give its employees paid leave for mid and long term education and training. The business owners are reimbursed for the expenses and wages of participants of the training programs.
Seven or more days of paid leave is given to the business owner of a company eligible for the support or businesses with fewer than 150 employees. Part of the training expense and the wage of participants are provided when the training of 30 hours or longer is conducted. Some portion of wage to hire substitute workers as well as the training expense and the wage of participating employees are offered when a training program of
120 hours or longer is provided with paid leave of 30 days or more.
<Table Ⅲ-3> shows the details of the training under paid-leave based on the size of the business. The larger the business, the more workers participated in training programs. Since 2009, however, the participation of SMEs has increased as SMEs have received more support than large companies. Industries which show active participation in the training under paid-leave are the manufacturing, financial, insurance, real estate and construction industries.
<Table - 3> Details of the Training Under Paid-leave by the Corporate Business (December 2011)
(Unit : Number of cases, %)
Source: Employment Insurance White Paper, Ministry of Employment and Labor 2012.
Year Support Fund (KRW, MN)
Number of Trainees
Total Fewer than 300 300 or more
2008 15,071 9,324(100.0) 3,330(35.7) 5,994(64.3)
2009 15,320 13,294(100.0) 8,574(64.5) 4,720(35.5) 2010 10,951 10,873(100.0) 7,828(72.0) 3,045(28.0) 2011 11,505 11,257(100.0) 7,764(69.0) 3,493(31.0)
(3) Support Fund for Enhancement of Employees’ Job Competency and Naeil Baeum Card system (Learn for Tomorrow Card system)
The Support Fund for Enhancement of Employees’ Job Competency and the Naeil Baeum Card system (Learn for Tomorrow Card system) are the programs which reimburse the expense of training programs provided for vulnerable groups in terms of employment who have less accessibility to employer-provided training. (Refer to <Table III-4>)
The “Naeil Baeum Card” system helps irregular workers and those who are scheduled to change jobs within 90 days or had been on an unpaid leave of absence for 90 days or more for managerial reasons. The number of participants in the program has rapidly increased from 7,638 in 2007 to 129,451 in 2011.
Expensive training courses can also be provided since the limit of annual support is up to KRW2million.
The “Support Fund for Enhancement of Employees’ Job Competency” program is provided mainly for short-term, dispatched, part-time, daily workers and SME employees as well as the self-employed who are voluntary employment insurance holders. The limit of support is KRW1million per year which is less than 80% and 50% of the tuition fee for general in-service education and foreign language training, respectively. The number of trainees of these programs has quadrupled from 38,908 in 2004 to 162,922 in 2011 as interests in self-directed learning have increased.
<Table - 4> Comparicon of Employee-directed Training Naeil Baeum Card system Support Fund for Enhancement
of Employees’ Job Competency
Target
Short-term, dispatched, part-time, and daily workers,
Those who are scheduled to change jobs within 90 days,
Those who had been on unpaid leave or absence for 90 days or more
Employees of priority support companies, irregular workers, self-employed voluntary insurance holders
Limit of Support
KRW2MN/year, KRW3MN/5 years (Total of the two types of support funds)
KRW1MN/year, KRW3MN/5 years
Support Amount
The Ministry of Employment and Labor directly support to training institutions within the support limit of 80~60% of actual tuition fee (collective: 20%, foreign language:
50%)
Employees bear the training fee first and then 50~100% of the fee reimbursed after the completion of the program.
Training Course
Courses of more than 10 days or 40 hours authorized by the Minister of Employment and Labor
Courses of more than 2 days or 16 hours authorized by the Minister of Employment and Labor
Source: Vocational Competency Development Program, Ministry of Employment and Labor 2012.
<Table III-5> shows that 73.5% of the trainees who were provided with financial support for the enhancement of job competency was from companies with fewer than 50 employees.
This suggests that through direct support, the system provided better accessibility to vulnerable groups with insufficient opportunities for training. 52.2% of participants of the Naeil
Baeum Card system training program were from companies with fewer than 50 employees, and 15.5% were from large companies with more than 1,000 employees that had a large number of irregular workers.
<Table - 5> Status of Employee-Directed Training in 2011 (Unit : Number of cases, %)
Classification Naeil Baeum Card system Support Fund for Enhancement of Employees’
Job Competency
Cases Ratio Cases Ratio
Total 129,451 100.0 162,992 100.0
Fewer than 50 67,559 52.2 119,782 73.5
50-150 15,382 11.9 32,547 14.4
150-300 9,974 7.7 8,993 5.5
300-500 6,945 5.4 3,447 2.1
500-1,000 9,452 7.3 2,670 1.6
1,000 or more 20,083 15.5 4,547 2.8
N/A 56 0.0 4 0.0
Source: Vocational Competency Development Program, Ministry of Employment and Labor 2012.