apprenticeship in korea

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APPRENTICESHIP IN KOREA

Ms. Hanbyul Lee (Stella)

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Overview of Korean Apprenticeship

Ⅰ

Current Status of Korean Apprenticeship

Ⅱ

Achievement and Challenges

Ⅲ

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Ⅰ . Overview of Korean Apprenticeship

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Background

 Youth unemployment & Job mismatch

• Oversupply of university graduates

• Supply: Youths avoid working for SMEs, Youths waste time boosting their “Spec”

• Demand: Labor shortage of SMEs, Increased age of first entry into labor market

 Mismatch between industry and school education

• Learning content in school does not match with duties and tasks in companies

• Companies have to cover a considerable cost of re-educating new workers

Introduction of Korean Apprenticeship (September 2013~)

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Concept

• Companies provide training to apprentices DIRECTLY

• Thoroughly planned OJT & Off-JT

• For 1 to 4 years

• Contract signed between an apprentice and an employer

• Selecting companies with good technical skills and competencies

• Changed to a regular worker after finishing the program

• Receiving a nationally recognized qualification (currently in development) Benchmarking German/Swiss dual system

but modifying it to be more suitable for Korean VET system

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Types

Type Sub-type Target Group

Apprenticeship for

Students

• Apprenticeship high school^{(2 year)} • Specialized vocational high school students

• Uni-Tech^{(3.5 year)}

• IPP(4~10 month + 1 year) • University students

Apprenticeship for

New Workers

• Company-led

• Training center-led Graduates of

• High school

• College

• University

• Qualification(1-4 year)

• Qualification + Degree(2, 4 year)

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Types

Type Target Group Concept Duration

Apprenticeship High School

[High school]

11^th and 12^th year of

specialized vocational high schools

•Simultaneously taking vocational education &

apprenticeship

•3 days in school and 2 days in company

•2 year

Uni-Tech

[High school + College]

Integrated system of

secondary and tertiary VET

•Integrating vocational education in high schools and colleges

•3.5 year

- 2 year(HS) - 1.5 year(Col) IPP

(Industry Professional

Practice)

[University]

3^rd and 4^th year of university

•3^rd and 4^th year university students join

apprenticeship

•3^rd : 4~10 month

•4^th: 1 year

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Types

Main Operating Agent

Company-led Training center-led

Recognition of results

Qualification (1-4 year)

• Company-led

• Qualification

• Training center-led

• Qualification Qualification

+ Degree (2, 4 year)

N/A • Training center-led

• Qualification + Degree

 Target Group

• Graduates of High School, College and University

 Duration

• 1-4 year

Company(Off-JT & OJT) Training center(Off-JT) Company(OJT)

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Governance

- Setting out principles and standards - Financing the system

- Creating QA framework

MOEL

KRIVET HRD Korea

Companies

Training Centers (Apprenticeship

Industry Skills Councils

(ISC)

KOPO

MOE

- NCS & Qualification

- Program development standards - Qualification assessment standards - Delivery and

management of services

- Developing curriculum

- Research &

quality assurance

- Cooperating in the area of apprenticeship for students

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Government Supports

 Program development and infrastructure cost (per company)

• Program development: 5,800,000 ~ 8,900,000 KRW (5,000 ~ 7,700 USD)

• Training material development: 3,000,000 KRW (2,600 USD)

• Training In-company trainer and HRD staff: 1,000,000 KRW (900 USD)

 Operation cost (per year)

• In-company trainers’ allowances: 4~16,000,000 KRW (7~14,000 USD)

• HRD staff’s allowances: 3,000,000 KRW (2,600 USD)

• Training support fees: actual expenses

• Apprentice support fees: 4,800,000 KRW (4,200 USD)

• Board and lodging fees: 3,300,000 KRW (3,000 USD)

Per apprentice 20,710,000 KRW (18,000 USD)

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Procedure of Operation

Selecting Companies

Developing Programs

Recruiting Apprentices

Off-JT

Evaluating Apprentice’s Competencies

Employment OJT

Verifying Programs

Monitoring Quality of

Training

Awarding Certifications HRD Korea Companies Companies

Companies / Training Centers

Companies Internal Evaluation:

Companies External Evaluation:

HRD Korea

Companies

HRD Korea HRD Korea HRD Korea

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Ⅱ. Current Status of Korean Apprenticeship

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Current status of Apprenticeship

Company July 2017)

• Participation: 10,456 companies

• Training: 8,098 companies & 49,639 apprentices

Company- led 19.9%

Training Center-led

80.1%

Operation Type

Qualification 92.7%

Qualification+

Degree 1.8%

Qual &

Qual+Deg 3.8%

Module 1.7%

Recognition Type

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Current status of Apprenticeship

Less than 50 64.1%

50-299 32.0%

300-999 3.1%

More than 1000 0.8%

Company Size

Less than 50 50-299 300-999 More than 1000

6 month 1.1%

12 month 66.9%

18 month 6.1%

24 month 20.8%

36 month 0.5%

48 month 4.5%

Duration

6 month 12 month 18 month 24 month 36 month 48 month

3,601

1,521 1,418

384 307 252

2,973

Sector

Company ⁾

Reference: HRD Korea(2017.7). Current Status of Apprenticeship in Korea(Statistical data).

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Current status of Apprenticeship

Apprentices

Lower than middle school 0.3%

Specialized and meister high school

34.6%

General high school 15.9%

College 17.7%

University 27.6%

Graduate school 1.4%

Others 2.5%

Lower than middle school Specialized and meister high school

General high school College

University

Graduate school Others

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Current status of Apprenticeship

Type Current Status

Apprenticeship High School

• 60 project teams, 187 specialized high schools, 1,967 firms, 6,609 apprentices

• (2015) 9-> (2016) 60-> (2017) 187 specialized vocational high school

• Focusing on engineering sector but also including IT and service sector

Uni-Tech • 16 project teams(universities & high schools), 117 firms, 783 apprentices

IPP (Industry

Professional Practice)

• 1^st term: 13 universities, (2016) 185 firms, 321 apprentices (2017) 130 firms, 276 apprentices

• 2^nd term: 10 universities, (2017) 98 firms, 194 apprentices

• 3^rd term: 9 universities (currently recruiting firms and apprentices)

• Specialized vocational high School: 464 schools

• Meister high school: 48 schools

• Apprenticeship high school: 187 schools(40% of specialized vocational high school)

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Ⅲ. Achievement and Challenges

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Achievement: Economic Aspect

 With incentives, the company is benefited from apprenticeship system.

• (Including government incentive) Economic net-benefit of companies per apprentice is +16,308,882 KRW (14,000 USD) a year.

• (Without government incentive) Economic net-benefit of companies is –4,406,158 KRW (3,800 USD) a year.

per company per apprentice

Cost 151,389 33,537

Benefit(including incentive) 225,007 49,847

Benefit(without incentive) 131,500 29,131

Net-benefit(including incentive) 73,618 16,309 Net-benefit(without incentive) -19,889 -4,406

※ Unit: thousand KRW

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Achievement: Economic Aspect

 Comparing with cost benefit structure of apprenticeship of other countries

• It is expected that a net benefit “excluding government support” would be made in 3-4 years after the apprenticeship started.

1st year 2nd year 3rd year 4th year 5th year Measurement

Korea

- (+ when including incentive)

+ + Benefit-Cost

Switzerland - + + + + Benefit-Cost

England - + + + + Payback period

Australia - - - + + Cost-Benefit

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Achievement: Social Aspect

 Government

• Improve youth employment

• Lower entering-into-work age by shortening the period of looking for a job

• Deal with mismatch between supply & demand of skilled manpower

 Company

• Train workers along with company needs

• Reduce period & cost of re-educating new worker

• Induce long service of apprentice

• Improve capability of apprentice’s job performance

 Apprentice

• Increase the possibility of employment

• Improve capability of job performance and confidence of being an expert

• Enhance adaptability in business environment

• Have economic stability and psychological calm from stable employment &

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apprenticeship in korea