1. HRD and Socio-Economic Achievement I Korea
Dr. Soobong Uh
Professor, Economics and Management
Korea University of Technology and Education

2. Contents
Ⅰ. Facts
Ⅱ. Consequences
Ⅲ. Why and How?

3. Trend of higher education in Korea
Fact 1:
Trend of higher education in Korea 10 20 30 40 50 60 70 80 90
100
1965
1970
1975
1980
1985
1990
1995
2000
2001
2002
2003
2004
2005
2006
year %
Primary school  junior school
Junior school High school
High school  college
College  graduate School

4. PISA 2006 results Fact 2: Rank 1 2 3 4 5 6 7 8 9 10 Science
performance
Reading
Mathematics
Finland (563)
Canada (534)
Japan (531)
New Zealand (530)
Korea (522)
Germany (516)
United Kingdom (515)
Czech Republic (513)
Switzerland (512)
Austria (511)
Korea (556)
Finland (547)
Canada (527)
Ireland (517)
Australia (513)
Poland (508)
Sweden (507)
Netherlands (507)
Belgium (501)
Switzerland (499)
Finland (548)
Korea (547)
Netherlands (531)
Switzerland (530)
Japan (523)
New Zealand (522)
Belgium (520)
Austria (520)
Denmark (513)
Source: OECD PISA 2006 database. Figure 6.8b, PISA 2006: Science Competencies for Tomorrow’s World.
OECD PISA 2006 database. Figure 6.20b, PISA 2006: Science Competencies for Tomorrow’s World.
OECD PISA 2006 database. Table 2.1c and Figure 2.11c, PISA 2006: Science Competencies for Tomorrow’s World.

5. Fast economic development
Consequence 1:
Fast economic development
Primary school  junior school
Junior school High school
High school  college
College  graduate School
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
1970
1975
1980
1985
1990
1995
2000
2001
2002
2003
2004
2005
2006 10 20 30 40 50 60 70 80 90
100
Gross national income

6. Consequence 2: Low Unemployment 10 4 Nepal China Philippines Thailand
Malaysia
Vietnam
India
Indonesia
Bangladesh
Taiwan
Korea
Pakistan 8 6 2
42%
4.0%
7.3%
1.7%
3.1%
5.1%
7.2%
9.7%
2.5%
3.9%
3.2%
7.5%

7. Trend of unemployment rate in Korea
1979
Oil Shock
1997
Financial Crisis

8. Social Equity (Gini coefficient)
Consequence 3:
Social Equity (Gini coefficient) 50 20
Nepal
China
Philippines
Thailand
Malaysia
Vietnam
India
Indonesia
Bangladesh
Taiwan
Korea
Pakistan 40 30 10

9. Gini's coefficient as for China is estimated at the late 40's.
A report, titled, "Inequality in Asia”, a publication of Asian Development Bank(ADB) on the past year, showed that, out of 22 Asian developing countries surveyed,
the highest income gap between the rich and poor in Nepal and, next in order, China, the Philipines, Turkmenistan, Thailand and Malaysia. Korea ranked third in narrowing the gulf, following Kirghizstan and Pakistan.
The report falls short of Gini's coefficient in each country surveyed, only showing the table.
Gini's coefficient as for China is estimated at the late 40's.

10. Consequence 4: Democratization
Funeral procession of Martyr Lee, Han Yeol leaving △
from the entrance of Yonsei University in July of 1987,
bounded for his far-remote homeland Gwangju
△Ah, My Fatherland! -- a photo nominated as one of AP's 100 greatest in the 20th century
It shows a man with his upper body naked, shouting "No more firing!", running toward the police blockade shrouded with teargas bombs in the street of Munhyun rotary in Pusan. The picture representing Korea's democratization in most symbolistic manner was included in 1999 one of 100 greatest photos in the 20th century according to AP.

11. Why higher education in Korea?
Historical Background
Economic Motivation
Social Incentives
Government policies

12. Historical Background 1 : Confucianism and social hierarchism composed of scholar, farmer, industrialist and commercialist
The ancient class society consisting of
nobility, commoner and slave 士 農 工 商
the agrarian society was engraved deeply,
it became more concrete to form a social hierarchy
based on status called 'Sa-nong-kong-sang',
i.e. four classes of scholar, farmer, industrialist and commercialist.

13. In Chosun dynasty adopting Confucianism
as its philosophy for the politics and religion,
Sa-nong-kong-sang was a ruling system over the society.
As there was a saying, "The farmer is the core among the Heaven and the Ground--Agriculture is the basis of national existence," nothing but farming could be found to the extent of little noticeablility in national income.

14. Historical Background 2 : Kwageo system acting to open
the offices to the talented

15. The Kwageo was a meaningful state-run examination fairly putting into practice based on ability far beyond then-existent consanguinity and political ties.
In addition, it served getting closer to a philosophical politics, making it possible to recruit men of ability based on academic standard, which was an exemplary case in civilized nations.

16. Historical Background 3 : Foundation of private schools
as means of independence movement
◁ Mundan-soorok,
a writing in Korean and Chinese characters by Ahn, Chang Ho( )
keeping a record of Daesung School located in Pyungyang
△ Daesung School in Pyungyang founded in 1908

17. The patriotism and enlightenment movement which was made for laid much emphasis on economical self-alliance and national cultivation through education.
Since the Eulsa Treaty concluded in 1905, there has strongly emerged a necessity of education in pursue of recovery of national rights, putting into action the establishment of approx.
3,000 private schools over the nation including Daesung School in Pyungyang and Osan School in Jungju.
This national drive was suffered by the ruling Japanese oppression as it promulgated the Private School Act in 1908.

18. Historical Background 4 : Liberation and Korean War
◁ Civilians fleeing south over Daedong River,
using destroyed bridge Pyongyang
△ Daejeon, South Korean Civilians murdered
by retreating PLA

19. Liberation from colony and the Korean war had totally demolished physical capital as well as social class.
Land reform: No large landlord
3 years war: No industrial plant
-> Korean people has started equally with bare hands.

20. Economic Motivation 1 : Higher the rate of return,
higher the investment in education
0.16
0.15
0.14
0.13
0.12
0.11
0.10
0.09
0.08
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
The trend of the rate of return from educational investment
Source : An estimation based on Statistical Survey on Wages,
Ministry of Labor, Korea

21. 25.0
20.0
15.0
10.0
5.0
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Trend of the rate of return from educational investment: by gender and schooling
Source : An estimation based on Statistical Survey on Wage Frame, the Ministry of Labor, Korea
Male graduates College
Female graduates College
Female graduates high school
Male graduates high school

22. Economic Motivation 2: Wage premium
Monthly income by educational attainment
college(26.4%)
High school(19.9%)
Junior school(1%)
Primary school
(11.9%)
2003
2004
2005
2006
2007
* Source: Office of Statistics
* ( ): increasing for 4 years
* unit: thousand USD
2,800
3,030
3,080
3,260
3,540
1,960
1,390
1,090
2,080
2,140
2,160
2,360
1,480
1,400
1,360
1,180
1,160
1,130
1,220

23. Wage difference between college graduates and
junior school graduates has been even greater
in 2000s.
2003: 2.01 times -> 2007: 2.52 times

24. Economic Motivation 3: segmented labor market
Korean labor markets has been segmented along with fast industrialization mainly by sex and education.
Therefore higher education becomes more essential to enter the primary labor markets.
Lower education is found to be more and more disadvantaged in entering job markets as well as in attaining higher wages.

25. Social incentive 1 : Education as social network
Higher education is essential to enter into higher society
and more power.
In Korea, the educational background is often blamed to be
the first and the most important factor to get the social
network in which major decisions are made.
Education is “myth” as well as “reality”,
being considered as social capital.

26. Education as network (continued):
307
109 97 77 71 70 37 36 33 32 22 18 17 15 14 12 11
24.3%
8.6%
7.7%
6.1%
5.6%
5.5%
2.9%
2.8%
2.6%
Only 10 major university graduates have 73.8% of positions
in high-ranking government offices

27. Social Incentive 2 : lower birth rate
Crude birth rate : This entry gives the average annual number of births during a year per 1,000 persons in the population at midyear;
also known as crude birth rate. The birth rate is usually the dominant factor in determining the rate of population growth.
It depends on both the level of fertility and the age structure of the population.
S. Korea
(9.93)
San Marino (9.89), Hungary (9.66), Switzerland (9.66), Croatia (9.63), Bulgaria (9.62)
Greece (9.62), Belarus (9.50), Ukraine (9.45), Latvia (9.43), Singapore (9.17)
Monaco (9.12), Jersey (9.02), Slovenia (9.00), Taiwan (8.97), Czech Republic (8.96)
Lithuania (8.87), Bosnia and Herzegovina (8.80), Austria (8.69), Guernsey (8.65), Macau (8.57)
Italy (8.54), Andorra (8.45), Germany (8.20), Japan (8.10), Hong Kong (7.34)
Niger (50.16), Mali (49.61), Uganda (48.12), Afghanistan (46.21), Sierra Leone (45.41)
Burkina Faso (45.28), Somalia (44.60), Angola (44.51), Liberia (43.75), Congo, Democratic (42.96),
………, Bangladesh (29.36), … , Paraguay (28.77), …, Philippines (24.48), Nauru (24.47)
…, Bolivia (22.82), India (22.69), Malaysia (22.65), …, Kuwait (21.95), Ecuador (21.91) etc.
World Average
(20.09 )
107 Countries
25 Countries
The crude birth rate lower than that of Korea falls only into 25 countries among 223 nations over the world,
the figure of which remains comparably short of
20.09 persons on the global average.

28. The total fertility rate, or the number of children per
woman's lifetime, stands at 1.28 in Korea in 2007.
-> Young Korean Parents can afford to invest in higher education for their children more than ever.

29. Overall, in Korea,
Higher education is believed to be the most important factor to get
Higher income
Job Security
Social status
Heritage to be given to children
In short, it is the engine of success to ordinary Koreans.

30. Government policy 1 : Higher budget to Education
(unit : million USD, %)
1970
446 78
17.6
2.8
144
5.4
1980
5,804
1,099
18.9
1,971
5.7
1990
22,689
5,062
22.3
2.7
8,524
4.7
1995
54,845
12,496
22.8
3.1
19,215
5.5
2000
118,920
19,172
16.1
3.3
31,507 6
2001
124,463
20,034
3.2
35,321
6.4
2002
136,618
22,273
16.3
38,830
2003
142,940
24,404
17.1
3.4
46,035
2004
146,873
26,340 18
3.6
48,258
6.2
2005
160,145
27,982
17.5
49,525
6.5
Source : Ministry of Education
Total Budget(A)
Education(B)
B/A(%)
Of GDP(%)
Schooling expenditure

31. The budget of the Ministry of Education totals to 29 trillion
Won(U$29 billion), 6 times larger than that of 1990, sharing
20% more or less in central government budget.
Koreans spend more than 6% of GDP on formal schooling, which does not include the expenditure on informal learning, of which cost is expected to be even greater than that of formal schooling.

32. Government policy 2 : higher remuneration program for teachers
Teacher is a good occupation with job security and higher salaries.
Rank 1 2 3 4 : 10
Luxembourg
Switzerland
Germany
Spain
Korea
86,712
42,445
39,132
35,098
28,449
83,390
55,115
48,754
48,167
Japan
115,899
78,351
66,189
58,373
Entry
15th years after
last
Rank of school teachers’ wages(2004)
* unit: USD(PPP)
* source: OECD

33. Government policy 2 : High competition to be school teachers (2008)
Seoul
Incheon
Gyeonggi-do
19.92
26.30
19.36
Gangwon-do
Daegu
22.07
Gyeongsangbuk-do
Busan
Ulsan
Gyeongsangnam-do
Deajeon
Chungcheongnam-do
Chungcheongbuk-do
Gwangju
Jeollanam-do
Jeollabuk-do
Jeju-do

34. Trend of competition to be school teachers for the recent three years
Seoul
Incheon
Gyeonggi-do
Deajeon
Chungcheongnam-do
Chungcheongbuk-do
Jeollabuk-do
Gwangju
Jeollanam-do
Busan
Ulsan
Gyeongsangnam-do
Daegu
Gyeongsangbuk-do
Gangwon-do
Jeju-do
District
13.73
12.45
12.19
11.46
8.44
8.64
9.14
8.81
11.43
8.55
10.68
11.26
10.62
10.24
11.07
4.60
17.65
15.56
14.72
11.91
11.24
12.38
11.11
13.41
10.75
11.08
14.09
17.51
12.36
16.56
8.06
5.18
19.92
26.30
19.36
16.28
18.05
19.66
16.30
17.44
17.33
18.18
24.84
23.75
18.41
22.07
13.61
13.97
2006
2007
2008
total
11.29
13.92
19.53

35. Challenges : Is higher education always good?
1. Too Fast?
- Skill Mismatch between demand and supply
-> Higher rate of youth unemployment and Less technicians
Quality?
Increasing Complaints on quality of higher education
=> Reform of Higher Education is on-going.

36. Thank you. Korea University of Technology and Education
Dept. of Industrial Management
Professor / Director, KUT-HRD Research Center
Soobong Uh, Ph. D.
307, Gajeon-ri, Byeoncheon-myeon, Cheonan City
Chungnam Province , Republic of Korea
TEL : /
FAX :
Mobile :