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Higher Education Reform in Korea - Policy Responses to a Changing Labor Market -

Higher Education Reform in Korea - Policy Responses to a Changing Labor Market -. February 13, 2007. Moon Hee Kim Ministry of Education & Human Resources Development Republic of Korea. CONTENTS. 1. Overview. 2. The Change of Labor Market. 3. HE Policy Responses to Labor Market Change.

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Higher Education Reform in Korea - Policy Responses to a Changing Labor Market -

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  1. Higher Education Reform in Korea - Policy Responses to a Changing Labor Market - February 13, 2007 Moon Hee Kim Ministry of Education & Human Resources Development Republic of Korea

  2. CONTENTS 1 Overview 2 TheChangeof Labor Market 3 HE Policy Responses to Labor Market Change Labor Market Change and Higher Ed., Expert Meeting, CERI(OECD)

  3. Overview 1. Labor Market Change and Higher Ed., Expert Meeting, CERI(OECD)

  4. Number of schools Number of students total public private Total public Private Junior College Technical college Miscellaneous Cyber College 152 - 1 2 13 139 - 1 2 817,994 65 39 3,600 33,553 886,926 65 39 3,600 Subtotal 155 13 142 821,698 33,553 788,145 University Teacher college Industrial Univ. Tech university Air&correspon Miscellaneous Cyber College in Company 175 11 14 1 1 3 15 1 25 11 6 1 150 8 1 3 15 1 1,888,436 25,881 180,435 130 273,417 1,027 64,658 63 405,256 25,881 87,374 273,417 1,483,180 93,061 130 1,027 64,658 63 Subtotal 221 43 178 2,434,047 791,928 1,642,119 NumberofStudents & Schools, HE <As of April 1, 2006> Labor Market Change and Higher Ed., Expert Meeting, CERI(OECD)

  5. EconomicDevelopment Labor Market Change and Higher Ed., Expert Meeting, CERI(OECD)

  6. SequentialExpansionofEducation • Step-by-step attainment of universal education: primary  secondary  higher education Elite Mass Universal ※Trow, “Forms and Phases of Higher Education”: Elite  Mass  Universal Labor Market Change and Higher Ed., Expert Meeting, CERI(OECD)

  7. PolicyFociforEconomyandEducation Labor Market Change and Higher Ed., Expert Meeting, CERI(OECD)

  8. 2. TheChangeof Labor Market Labor Market Change and Higher Ed., Expert Meeting, CERI(OECD)

  9. Changes in Industrial Structure < Employment Structure > ※ 2015p: Agriculture 5.5%, Manufacturing + Construction 18.3%, Service 76.2% Labor Market Change and Higher Ed., Expert Meeting, CERI(OECD)

  10. Demographicchange Low Fertility Ageing Demographic structure: age group Total fertility rate No. of birth Labor Market Change and Higher Ed., Expert Meeting, CERI(OECD)

  11. Youth Unemployment • Youth(15~29세) Unemployment(’06.11), 7.5%(34.3mil.): 2.3times greater than the overall UR Unemployment rate(%) Labor Market Change and Higher Ed., Expert Meeting, CERI(OECD)

  12. A B B C C SkillMismatch / Low Satisfaction • Skill Mismatch in labor force Supply Lack of qualified core talents Demand Youth unemployment (343,000) Labor shortage at SMEs (197,000) • Low level of satisfaction towards university graduates ※ Ranked 50th out of 61 countries in terms of university education meeting economic demands(IMD, 2006) Labor Market Change and Higher Ed., Expert Meeting, CERI(OECD)

  13. Wage gaps by employment (ratio) 1.8 2.1 1.7 2.0 Regular / non-regular employment 1.6 1.9 4-year college graduate / HS graduate 1.5 1.8 1.4 1.7 (company size) Over 500 / 10-29 1.3 1.6 1.2 1.5 1992 1994 1996 1998 2000 2002 2003 Wage gaps / Wage premium • Increasing non-regular employment  widening a wage gap. • University premium decreased until mid-90s but… Labor Market Change and Higher Ed., Expert Meeting, CERI(OECD)

  14. 3. HE Policy Responses to Labor Market Change Labor Market Change and Higher Ed., Expert Meeting, CERI(OECD)

  15. Top-notch professionals (Graduate Schools) Regional innovation initiators (Universities) Vision and Goals Globally Competetive Higher Education Industrial engineers (Junior Colleges ) Restructuring & competition Selected funding for specialization LB information Partnerships Labor Market Change and Higher Ed., Expert Meeting, CERI(OECD)

  16. Majorstrategies • Improvement of HE/labor market information - manpower forecasting and assessment of skill requirements • Promotion of restructuring and competition through market discipline - use of various incentives and disincentives • Fundingbasedon“selectionandconcentration” - targeted funding for specialization and regional parity • Financinglearnersratherthanproviders - learner-oriented/demand-side financing (student loans) • Enhancementofnetworkingandpartnerships -with local governments and business community Labor Market Change and Higher Ed., Expert Meeting, CERI(OECD)

  17. HE Reform Initiatives • Strengthening graduate programs in high value-added service areas: medicine, law, international finance, MBA, etc • Introduction of a new HE quality assurance system - Establishing the new quality assurance agency including the accreditation and certification process with global standard - Financial provisions aligned with institutional evaluations • Clearing HE information - Inputs measures: PT ratio, unit expenditure, occupancy/ enrollment rate - Process/Outcome measures: persistence/graduation rate, employment rate, customer satisfaction, etc. • Financial incentives for reform and restructuring HE Inst. - Subsidies linked to amalgamation among institutions ※ Reducing enrollment by 50K students by 2009(18 inst. merged into 9, as of 2006) Labor Market Change and Higher Ed., Expert Meeting, CERI(OECD)

  18. Major Programsto enhance the Quality (1US$ = 1,000KRW) ◈ 1st-Phase Brain Korea 21 (1999~2005, US$ 1.4billion) ▶Enhanced university research capacity; induced competition ※ Number of BK21 science & tech SCI-level papers: 3,765(1998)  7,947(2005) ▶Produced scientists of international competence ※ Number of doctors in science & tech(1999~2005): 6,602 ◈ 2nd-Phase Brain Korea 21 (2006~2012, US $2.3billion) ▶Cultivate 20,000 graduate-level best brains per year ※ 74 universities, 244 project units, 325 project teams(2006, US$ 290million) ◈ New University for Regional Innovation (2004~2008, US$ 1.2billion) ▶Specialize local universities; nurture human resources readily adaptable to the industry※ 109 local universities, 130 project units ◈ “Connect Korea” Project(2006~2010, 150million) ▶Strengthening partnership b/w universities and industry ▶Establishing Consortium b/w TLOs (Technology Licensing Offices) in univ. Labor Market Change and Higher Ed., Expert Meeting, CERI(OECD)

  19. The government system changed since 2001. Government Role • Coordinate HRD/VET polices among different line ministries. - Ministerial Committee on HRD (chairperson : DPM) - The Committee is composed of 14 Ministers Labor Market Change and Higher Ed., Expert Meeting, CERI(OECD)

  20. Thank you mhk3333kim@moe.go.kr Labor Market Change and Higher Ed., Expert Meeting, CERI(OECD)

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