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May 2019 Professor Jong- Kil Park KOREATECH

Strategy of Vocational Competency Development Training Innovation for the 4th Industrial Revolution. May 2019 Professor Jong- Kil Park KOREATECH. I.N.D.E.X. Current Vocational Competency Development Training(VCDT) in Korea Changes in Circumstances Surrounding VCDT

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May 2019 Professor Jong- Kil Park KOREATECH

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  1. Strategy of Vocational Competency Development Training Innovation for the 4th Industrial Revolution May 2019 Professor Jong-Kil Park KOREATECH

  2. I.N.D.E.X Current Vocational Competency Development Training(VCDT) in Korea Changes in Circumstances Surrounding VCDT 3. Limitations and Issues of the Current System 4. Innovation Strategy for the 4th IR

  3. Ⅰ Current Vocational Competency Development Training in Korea

  4. Adoption and Growth of Vocational Training Ⅰ • Vocational training that drove ‘The Miracle on the Han River’ • Key to rapid economic development is human resources development No. of trainees for the past 5 years (unit: 1,000 persons) Per capita GDP

  5. 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

  6. Ⅰ Vocational Education and Vocational Training Formal education system • Koreaneducation system has 6-3-3-4 pattern

  7. 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

  8. 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

  9. Ⅰ Vocational Training and Employment Insurance Structure of EIS and Premium Rate

  10. Ⅰ Vocational Training and Employment Insurance VT under EIS

  11. Ⅰ 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 : 11 billion won Training for un- employed Leading training institute: 20, training courses: 43, participants: 921 persons SpecificTrainingforgeneral high school studentswhoare not willing to enter university 69.2 billion won(8,307 participants) Korea polytechnics: 112.9 billion won Trainee: 28,990 persons (technicians and craftsmen courses) Public training Korea University of Technology and Education: 24.5 billion won Trainee: 4,870 persons

  12. Ⅰ Vocational Competency Development Programs • Training for employed(as of 2018) Training by Employers (direct/commissioned): 435.1billion won, Training Plan: 2,100,000 Work - Learning Dual System: 459.8 billion won Support for Employer Training No. of participating companies: 7,680 , No. of learning workers: 41,121 Support for Establishment of Learning Organization: 1.8 billion won, Support plan: 91 companies Training for employed (training for improvement) Core Vocational Competency Enhancement Training: Learning Card System for Employed: 94 billion won, Training Plan: 470,000 persons Direct Support for employed Support for the Self-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 persons

  13. Ⅰ 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-pay

  14. Ⅰ 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)

  15. 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)

  16. Ⅱ Changes in Circumstances Surrounding Vocational Training

  17. Ⅱ Changes in Circumstances Surrounding Vocational Training Lowgrowth Low growth of the Korean economy • GDPgrowthrateof 1.0% by 2060 (OECD) • Employment elasticity was 0.416 in 2016, the lowest in 5 years (Korea Labor Institute) Reduction in economically active population • Low birth rate, aging • Higher retirement age(OECD 63∼64 vsKorea 70∼72) • The number of working age population (15∼49 years) will decrease by 300,000 every year from 2020 (Korea Statistics) • The 4th Industrial Revolution Paradigm shift in economy and social environment for intelligent informatization • 170,000 people will be required in 12 new industries by 2020(Korea Institute for Advancement of Technology). • 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)

  18. 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 industrial revolution The 2nd industrial revolution The 3rd industrial revolution The 4th industrial revolution 18th century 19th to early 20th century The 4th industrial revolution: from 2015 Late 20th century Knowledge and information revolution based on computers and internet Ambient intelligence revolution based on IoT/CPS/artificial intelligence Mechanization based on steam engine Mass production based on electric energy Innovate society with industrial structure system based on hyper connectivity and hyper intelligence among people, things and space. Emergence of global IT companies led by the US with internet and smart revolution Mass production using conveyor belt with electricity supply in a plant The British textile industry became a huge industry based on steam engine.

  19. Ⅱ Mega Trend: 4th IndustrialRevolution The 4th industrial revolution is reshaping the labor market! Gig workers (New type which is neither a worker nor a user • Silicon valley • “start-up culture” • Google “Flexible working • condition” Accelerated changes in jobs New venerable group Expansionof industries · Various types of employment and ways of working · Basic requirement is flexible and elastic labor market · 65% of current elementary school students will work in the jobs that do not exist now(WEF, 2016) · Increased importance of education and training to accumulate human resources · Concerns about anti-industrialization due to increased unemployment and aggravated inequality (Professor Carl Benedikt Frey of Oxford University)

  20. Ⅱ Mega Trend: 4th Industrial Revolution The 4th industrial revolution is reshaping the labor market! • Create demand for new products+ improve work productivity • Possibility of technical unemployment Increase inemployment • 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) • Decrease in • employment • 47% of jobs in the US will disappear due to advancement in automation. • (Frey&Osborne, Oxford University) • Commonground: 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% • 10% • 6% • 9% • 9% • 9% Share of jobs that are highly likely to be replaced by a robot (OECD, 2016) • (26th out of 26 countries) • Average • US • France • Germany • Spain • UK • Korea

  21. Ⅲ Limitations and Issues of Current System

  22. 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 graduates • Difference between education and field • Invest about 60 million won per 1 university graduate new employee (Korea Employees Federation) • Many university students depend on private education to improve their skills. * ITsector 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)

  23. Ⅲ Limitations and Issues Competency of the late middle aged people (55~65is at the lowest among OECD countries) • Lack of core competency of the late middle aged people • The competency of the late middle aged people is at the lowest among OECD countries and gap to that of the youth is severe.(Result of OECDadult core competency assessment) Competency gap between the youth and the late middle aged (points, OECD comparison) Ratio of those who are lack of skills by age (%) • Government-led training system Lack of incorporating market condition as training is led by the 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.

  24. Ⅲ Limitations and Issues Low level of training 4th industrial revolution Gapbetweeneducation And field · New technology and jobs created · Existing industries become obsolete ⇓ · Establish a lifelong-learning system · Respond flexibly to new technologies · Need to reflect demands in industrial fields into education and training ⇓ · NCS-based education and training · Adoption of training to improve the capability to solve problems. · Need for training program for highly educated job seekers ⇓ · Establishatrainingsystemfor nurturingprofessionals Innovation of VCDT! · Korean government announced 『Strategy for VCDT Innovation for the 4th Industrial Revolution』 on April 10th 2019

  25. Ⅳ Strategy for VCDT Innovation for the 4th IR

  26. Ⅳ • 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 training

  27. Comparison of current and future L/C

  28. Ⅳ • 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 Course

  29. Ⅳ • 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 <Average amount of support per person for equal edu. opportunities> Free high school education : 4.8mil Won Abolishment of entrance fee : 0.8 mil Won National scholarship : 17.4 mil Won Total approx. 23 mil Won + + =

  30. Ⅳ • 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)

  31. 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 peoplesuch 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)

  32. 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)

  33. 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 future

  34. Ⅳ 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 manpower

  35. Ⅳ 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 company

  36. Ⅳ 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 company

  37. Ⅳ 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)

  38. 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)

  39. 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 training

  40. Ⅳ 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 Develophumanresources suitablefor the field Industrial field NCS Knowledge Knowledge Technology Recruitment based on competency and personal management Demand from the industry Applic-ation • Knowledge Training Knowledge Attitude Technology • Technology • Technology Attitude Qualifications Career development Attitude Attitude Technology Knowledge

  41. 1) 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 NCS standardization

  42. Thank you

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