1. The Role of Education in Sustainable Growth

2. Contents 1.Overview of Korea Education 2.Importance of Education for Sustainable growth 3.Evolution of Human Capital Development System in Korea 4.Evaluation of Korean Education and Lessons 5.Korean Education System’s Contribution to the World

3. 1. Keys to the Success of Korean Education Expanding Compulsory Education and Education Investment Educating Teachers and Welfare Education Reform and Leadership International Education Industry-University Cooperation and Industry workforce Training

4. Source: OECD (2014), Education at a Glance Higher than OECD average ! Almost all Koreans go to school! 2. Overview of Korean Education Education development success 95.0 72.0

5. 2. Overview of Korean Education Education development success Source: OECD (2010), PISA 2009 Results Korea ranked fourth in the world in the number of researchers per 100,000 population The world top literacy and numeracy Source: UNESCO Database

6. 2. Overview of Korean Education Education development success Diversification of education system responding to the need of globalization and information age Internationalization of education institution

7. 수학읽기과학 국가명평균 전체 국가순위 국가명평균 전체 국가순위 국가명평균 전체 국가순위 상하이 - 중 국 * 6131 상하이 - 중 국 * 5701 상하이 - 중 국 * 5801 싱가포르 * 5732 홍콩 - 중국 * 5452∼42∼4 홍콩 - 중국 * 5552∼32∼3 홍콩 - 중국 * 5613∼53∼5 싱가포르 * 5422∼42∼4 싱가포르 * 5512∼42∼4 대만 * 5603∼53∼5 일본 5382∼52∼5 일본 5473∼63∼6 대한민국 5543∼53∼5 대한민국 5363∼53∼5 핀란드 5454∼64∼6 마카오 - 중 국 * 5386∼86∼8 핀란드 5246 ∼ 10 에스토니 아 5415∼75∼7 일본 5366∼96∼9 아일랜드 5236 ∼ 10 대한민국 5385∼85∼8 리히텐슈 타인 * 5356∼96∼9 대만 * 5236 ∼ 10 베트남 * 5287 ∼ 15 스위스 5317∼97∼9 캐나다 5236 ∼ 10 폴란드 5268 ∼ 16 네덜란드 5239 ∼ 14 폴란드 5187 ∼ 14 캐나다 5258 ∼ 14 에스토니 아 52110 ∼ 14 에스토니 아 51610 ∼ 14 리히텐슈 타인 * 5258 ∼ 17 핀란드 51910 ∼ 15 리히텐슈 타인 * 5167 ∼ 18 독일 5248 ∼ 17 캐나다 51811 ∼ 16 뉴질랜드 51211 ∼ 19 대만 * 5239 ∼ 17 폴란드 51810 ∼ 17 호주 51212 ∼ 18 네덜란드 5228 ∼ 18 벨기에 51513 ∼ 17 네덜란드 51111 ∼ 21 아일랜드 52210 ∼ 18 OECD 평 균 494 OECD 평 균 496 OECD 평 균 501

8. 2. Overview of Korean Education The world’s top education investor OECD(2014), Education at Glance. In 2011, Government spending in public education 7.6% of GDP compared to 6.1%(OECD)

9. 2. Importance of Education for Sustainable Development Joonghae Suh, KDI, Korea as a Knowledge Economy, KDI-DRC Seminar 2008.5.14 Knowledge accumulation contributed to 75% of real GDP per capita, 1960 - 2005 Contribution of Knowledge to GDP Growth

10. How this happened? EDUCATION HUMAN CAPITAL A LONG TRADITION OF CULTIVATING KNOWLEDGE AND EDUCATION ECONOMIC GROWTH * Incentive to work hard * Competition Export Promotion Strategies

11. Human capital contributes to economic growth Human Capital Productivity growth Education improves the quality of labor through increased skills, efficiency, and work knowledge Creativity pays off in knowledge-based economy Knowledge is the most important factor among capital, labor and land The knowledge and skills that workers acquire t hrough education, training, and experience

12. 3. Evolution of Human Capital Development System in Korea : 1948 – 60 Joonghae Suh, Korea as a Knowledge Economy, KDI-DRC Seminar 2008.5.14, p.12. Establishing a national infrastructure Using a government- initiated approach National level strategy Building elementary schools Developing vocational schools Developing HR in medicine, engineering, agriculture, teacher education Government policy Foreign assistance (UNKRA, OEC, USOM etc) Resources

13. 3. Human Capital Development System : 1961 – 80 Planning education for economic development Focusing on traditional institutions of higher education Continuing the government-initiated approach National level strategy Improving teaching quality (elementary and secondary education) Increasing college graduates majoring in engineering Developing medium-skilled HR Government policy Increasing educational period for new elementary and secondary (2 to 4 years) Creating vocational colleges Mobilizing private resources for expansion of educational sector Policy tools Joonghae Suh, Korea as a Knowledge Economy, KDI-DRC Seminar 2008.5.14, p.12.

14. 3. Human Capital Development System : 1981 – 2000 Enhancing lifelong learning Reaching out to the nontraditional education sector Using a government-led, partial market approach National level strategy Developing high-skilled HR in national strategic fields (IT, BT, S&T etc.) Developing a system of lifelong learning Government policy Increasing research funds in science and technology Creating diverse types of higher education institutions Introducing credit-bank system Policy tools Joonghae Suh, Korea as a Knowledge Economy, KDI-DRC Seminar 2008.5.14, p.12.

15. 3. Human Capital Development System: 2000 to present Increasing human resources innovation Tightening up the loosely connected system of HR development Using a coordinated government-market approach National level strategy Improving quality or relevance of university education Increasing research productivity Enhancing the efficiency of the HRD system Government policy Enhancing regional development and innovation Restructuring at government, system, and institutional levels Using massive financial support from government Resources (tools) Joonghae Suh, Korea as a Knowledge Economy, KDI-DRC Seminar 2008.5.14, p.12.

16. The Origin of Education Fever Korea’s first public school/education system – Koguryŏ Dynasty, 372 A.C (Taehak, 太學 ) Koryŏ Dynasty – Enthusiasm for education was highly praised by Chinese diplomats who visited Kaesung (capital of Koryŏ) A TRADITION OF CULTIVATING KNOWLEDGE 4. Evaluation of Korean education and Lessons

17. Chosŏn Dynasty (1392 – 1910) – A country of Sun-bi( 선비, 士, gentry) who has comparative advantage in creating knowledge and creativity – “The pen ( 文 ) has been mightier than the sword ( 武 )” throughout the Korean history – Civil service exam( 科擧 ) tradition : All citizens have the legal right to be the candidates of civil servant √ ”Before 1971 children were taught in two shifts because school-building could not keep up with the numbers!”

18. In Koryŏ dynasty (King Sungjong), the Twelve Private School ( 私學十二徒 ) was known as a competent education system better than public schools Massive education investment by private sector originated from a culture of selling cows to send kids to schools and to prepare civil service exam ( 科擧 ) ☞ In 2010s, private education investment per person is around $3000 = 10% of GDP per capita ! The Root of Strong Private Education System and High Education Investment by Private Sector

19. SOCIAL MOBILITY AND SHARED GROWTH Source: Ju-ho Lee et all. (2013) Is Korea Number One in Human Capital Accumulation A belief backed by precedents of increased social mobility “People could succeed by their own efforts!” Institutional transparency for climbing social ladder Declining Gini Coefficient Rising Korean Wage

20. Investment in Education Infrastructure for Greater Social Cohesion Improving teachers quality ☞ Qualification of teachers stipulated in law ☞ Fierce competition of teacher qualification exam Software and Hardware of education infrastructure ☞ Software : curriculum, teacher, evaluation method, career guide ☞ Hardware : textbooks, school buildings and other physical equipment √ The post-1997 wage inequality worsened allegedly due to huge investment in English education by private sector since public investment in English education has been somewhat inefficient.

21. KEY TO LINKING EDUCATION TO GROWTH The smooth transition of “Education to Employment” The rapid industrialization facilitated the employment of educated labor, enhancing industrial productivity and consolidating social cohesion. Providing human capital in need for export targeted industry C reating virtuous cycle between building high-skilled human capital and economic growth Pre-emptive changes in education policy pertinent to development strategies Foster growth to keep up with the globalization and information revolution.

22. 5. Korean Education System’s Contribution to the World Significance of human capital for sustainable growth Education investment as a means of shared growth and greater fairness Role model for achieving universal primary education (MDG) and 6 goals of “Education for All’

23. President Park Geun-Hye on educational lessons from Korea (GEFI Keynote Speech, September 2014) First, Korea provided through a government centered strategy an equal education opportunity to its people, regardless of where they live and which social class they belong to, while ensuring a minimum level of education quality at a time when the private sector lacked capabilities. Second, Korea made sure that education policy and economic development policy reinforced each other, focusing on meeting the demand for primary and secondary education with special attention paid to promotion of female manpower. Third, popular attitude toward education emphasizing education even under economic hardship was the engine of successful educational development, which made possible a cycle of inclusive growth by promoting social mobility and narrowing the income gap between rich and poor.

24. Knowledge Eleanor Farjeon Your mind is a meadow To plant for your needs; You are the farmer, With knowledge for seeds. Don’t leave your meadow Unplanted and bare, Sow it with knowledge And tend it with care Don’t be a know-nothing! Plant in the spring, And see what a harvest The summer will bring

25. References Noel F. McGinn, Donald R. Snodgrass (1980), Yung Bong Kim, Shin-bok Kim, Quee-Young Kim, Education and Development in Korea, Havard University Press. Han Youngwoo(1997), History of Korea Returns, Kyongsaewon. Jang Younghee(2006), Blessings, Viche. Joonghae Suh, Korea as a Knowledge Economy, KDI-DRC Seminar 2008.5.14. Hye-Jung Lee (2009), Higher Education in Korea. The Economist, Education: The other arms race, Special report. The Koreas, Oct 26 th. 2013. Ju-Ho Lee, Hyeok Jeong, Song-Chang Hong (2014), Is Korea Number One in Human Capital Accumulation? First draft. OECD (2014) Education at Glance (http://www.oecd- ilibrary.org/education/education-at-a-glance_19991487)http://www.oecd- ilibrary.org/education/education-at-a-glance_19991487 National Legislation Information Center (http://www.law.go.kr/)