The Fourth Industrial Revolution and Human Resources Development
Researcher in Charge : Hyung Man Kim / Senior Research Fellow
Ⅰ. Background and Objectives
The environment surrounding regional human resources policies has undergone significant changes due to the Fourth Industrial Revolution and demographic shifts, and this calls for a new approach to ensure sustainable regional development going forward.
Since past initiatives for regional human resources development fizzled out during the administration of President Lee Myung-bak (2008-13), human resources policies have been siloed and fragmented across central government agencies, and existing studies have failed to present viable alternatives that address not only human resources development and use, but also social capital management.
◦ The Fourth Industrial Revolution and demographic changes have considerable implications for policies
aimed at addressing regional gaps, and it is increasingly needed to take a holistic approach to policy areas at the regional level, such as learning, employment, research and development, industry, and social capital.
□ Given the impact of the Fourth Industrial Revolution and the emergence of the “demographic cliff,” this study intends to help develop future-oriented policies on regional human resources that break away from outdated approaches and to explore policy options that will enhance the quality of life for communities, as well as increasing national competitiveness in areas such as learning, employment, welfare, and culture.
Summary
The Fourth Industrial Revolution has had a significant influence on regional development.
Within the conceptual framework of the Fourth Industrial Revolution and regional human resources policy, this study addresses different issues such as technology and industry, employment, school education, lifelong learning, human resources development and use, and policy delivery. Based on this discussion, we made policy suggestions in six areas of partnership, spaces for creative work, knowledge building and use, the nurturing of craftsmen, educational welfare, and the ability of local governments to implement human resources policies.
Ⅱ. Key Research Details
1. Research Details
□ This study took into account the characteristics of the Fourth Industrial Revolution and the correlation between various policies to discuss issues on the high and low level in order to explore future policy options.
◦ On the high level, we established definitions related to the Fourth Industrial Revolution, the region, and
human resources, and the interdependence between these three areas. This discussion formed the basis of our conceptual framework and the scope of this study.
- On the issue of the Fourth Industrial Revolution, we examined the convergence and coevolution of technologies, factory automation, and platforms for production and consumption. We also delved into the limitations of regional development and looked at quality of life as the key to new approaches.
- In discussing human resources, we took a fresh approach to the conventional term “regional human resources development” and presented a new conceptual framework of “regional human resources policy.”
◦ On the low level, we took the outcome of the high-level discussions to look at the issues of human
resources from regional perspectives in such aspects as development, usage, systems, and delivery.
- We looked at the usage aspect from a demand perspective to discuss i) science and technology and industry, and ii) employment. On the supply side, specifically human resources development, we took a deep dive into iii) regular schooling, and iv) vocational training and lifelong learning outside the school system.
- The systems discussion focused on information, qualifications, and career development to explore v) ways to connect the development and use of human resources efficiently, and the delivery side discussion took a detailed look at vi) human resources delivery schemes.
◦ Based on the high- and low-level discussions, arrived at six policy suggestions that focus on capacity
building for individuals who need to be covered by a variety of policies.
- These six suggestions are: i) building partnerships required in areas such as school education and regional innovation; ii) providing spaces for creative work that serve as a basis for connecting learning, manufacturing, and entrepreneurship; iii) strengthening knowledge building and usage at universities; iv) nurturing regional craftsmen; v) establishing educational welfare at the regional level; and vi) strengthening the capacity of local governments in the area of human resources policy.
□ As regional human resources policies cover a broad range of aspects such as development, use, and network, we collaborated with relevant organizations and experts.
◦ The key methodology was expert brainstorming based on presentations, discussions, and in-depth field
research, and this formed the basis of the final report.
◦ 2. Findings
□ The Fourth Industrial Revolution and Regional Human Resources
◦ The Fourth Industrial Revolution drives innovation in the three areas of technology, manufacturing, and
transaction. Unlike in the past, technological innovation has taken on the characteristics of convergence and coevolution, and innovation in manufacturing has accelerated the automation of production processes.
With regard to innovation in transaction, this affects the capitalist transactional order through new platforms, along with the shared economy and the on-demand economy.
◦ Despite a host of policies for balanced regional development, the gap between regions has widened over
the years. To address this challenge and to respond to the Fourth Industrial Revolution, the gap in the quality of life among communities should be addressed and the building and usage of human resources needs to be promoted at the regional level because this serves as the foundation of cooperation and trust.
◦ Now regional human resources policies should encompass even infants, toddlers, and senior citizens to
address the development and usage aspects, specifically schooling and the labor market. Regional development needs to focus on individuals and policy options and should take individual needs into account.
□ The Current State and Challenges of Regional Human Resources Policy
◦ The adequate use of human resources could be the key to creating a regional innovation ecosystem. Past
initiatives for balanced regional development focused on population dispersal and the redistribution of industries, but these failed to narrow the regional gap. Existing policies on research and industrial development need to be revisited to renew the regional innovation ecosystem, while the future regional innovation should focus on the creation and use of knowledge to build upon the characteristics of regional economies, address social issues at the regional level, and re-establish the existing innovation system.
◦ The proper use of human resources is crucial in resolving employment issues as well. In the age of the Fourth Industrial Revolution, the knowledge and skills required in today’s jobs will be likely fast replaced by
new ones. The low fertility rate and the resulting drop in school-age children is threatening the very survival of regional universities and colleges, and exacerbating the issue of skill mismatch among college graduates, while Korea’s aging population, coupled with characteristics of rural areas which are significantly different from those of urban areas, is increasing the risk that many rural communities will disappear in the foreseeable future. These structural changes in the labor market have emerged as pressing issues in the area of regional human resources policy.
◦ Regular schooling is important for producing human resources. Korean school education continues to
focus on preparing students for college admission and the monodirectional transfer of knowledge. The Fourth Industrial Revolution calls for a break from these approaches and requires the education community to promote among students an interest in math and science and lead them to develop cooperation and problem-solving skills in a learner-focused environment. This is urgently needed at institutions of higher education, too. Universities should also play a major role in addressing social issues.
◦ Lifelong learning should help learners increase job skills, find a balance between work and learning, and
enhance the quality of their lives. Universities can serve as a platform for lifelong learning, and should embrace adult learners who represent the characteristics of the community in order to contribute to regional development. Accommodating adult learners’ needs requires a break from cookie-cutter programs and structural changes at universities to offer a variety of new programs.
◦ Dealing with human resources starts from the connection between development and use. This relationship
necessitates information on educational and job opportunities, proper training on career development, and a new qualification system to manage human resources at the regional level. Currently, local governments have no adequate infrastructure for developing a qualification system, providing information on education and job opportunities, or offering education and career consulting. These services need to be created to respond to and address future issues.
◦ Policy delivery depends largely on the approach taken by the central government. In the past, the Ministry
of Education and Human Resources created a framework for regional human resources development, and it was up to local governments to develop and implement detailed policies. Since President Lee Myung-bak took office in 2008, there have been no substantial nationwide initiatives for regional human resources development. Such initiatives are now secondary issues in government agencies, and only high-level planning is conducted by the central government. There needs to be a transition from a top-down approach by central government agencies to a new arrangement wherein local governments are allowed to play an important role.
Ⅲ. Policy Suggestions
□ Building social partnerships: Partnership is about building a network for school education and a learning network for the evolution of the regional innovation ecosystem. A learner focus in school requires the expertise of educators and the cooperation with outside experts and relevant figures in the community, and the regional innovation ecosystem for the future should also focus on cooperation among businesses, governments, and academia to help create and use knowledge.
□ Providing spaces for creative learning, manufacturing, and entrepreneurship: Spaces for creative work offer a platform for building knowledge through trial and error, sharing, and collaborating. Depending on the characteristics of the labor market and local communities, such spaces could be housed in different institutions and settings, such as Korea Polytechnics, science and technology institutes (KAIST, DGIST, GIST, and UNIST), and regional techno valleys.
□ Leveraging regional universities for building and using knowledge: Along with local governments, regional universities need to play a central role in the regional innovation ecosystem. Their operations should be changed to fit the characteristics of the communities they are in, and some universities could run programs for adult learners, depending on the features of the local population and industry.
□ Managing a pool of regional craftsmen: Local governments should run a qualification system to manage regional craftsmen and allow them to impart their knowledge and expertise in local elementary, secondary, and tertiary schools in the long run. It is also important to incorporate their hard-earned expertise into training programs.
□ Establishing community-oriented educational welfare: In the age of the Fourth Industrial Revolution, wherein workers have increasing needs for jobs and learning, the policy of educational welfare is a must to maintain job security. It can encompass such schemes as job sharing, sabbatical years, or authorized leave for learning. In the long term, an educational welfare fund will be needed.
□ Strengthening local governments’ capacity to manage human resources: Local governments should be able to create and disseminate information on education and job opportunities, and take the initiative in overseeing and coordinating policies for regional human resources in cooperation with the central government.
