1. Korea’s Knowledge Economy: Education in the Information Age James F. Larson, Ph.D. Deputy Director Fulbright Commission, Seoul Spring 2008

2. Presentation Overview The Knowledge Economy framework in Historical Context. The Knowledge Economy framework in Historical Context. Key features of South Korea’s education sector. Key features of South Korea’s education sector. Aspects and indicators of Korea’s evolving information society. Aspects and indicators of Korea’s evolving information society. How Fulbright Korea can help you. How Fulbright Korea can help you.

3. Economic and Institutional Regime Provides incentives for the efficient creation, dissemination, and use of existing knowledge Knowledge Economy Framework

4. Education Economic and Institutional Regime Provides incentives for the efficient creation, dissemination, and use of existing knowledge Necessary for the creation and effective use of knowledge Knowledge Economy Framework

5. Education Innovation Economic and Institutional Regime Provides incentives for the efficient creation, dissemination, and use of existing knowledge Necessary for the creation and effective use of knowledge Effective system of firms, research centers, universities that can tap into global knowledge, assimilate and adapt it and create local knowledge Knowledge Economy Framework

6. Education Innovation Information Infrastructure Economic and Institutional Regime Provides incentives for the efficient creation, dissemination, and use of existing knowledge Necessary for the creation and effective use of knowledge Effective system of firms, research centers, universities that can tap into global knowledge, assimilate and adapt it and create local knowledge To facilitate the effective communication, dissemination, and processing of information Knowledge Economy Framework

7. Education Innovation Information Infrastructure Interconnected Interdependent Economic and Institutional Regime Provides incentives for the efficient creation, dissemination, and use of existing knowledge Necessary for the creation and effective use of knowledge Effective system of firms, research centers, universities that can tap into global knowledge, assimilate and adapt it and create local knowledge To facilitate the effective communication, dissemination, and processing of information Knowledge Economy Framework

12. Knowledge & Economic Growth

14. Korea’s Education Sector Specialized and private high schools. Specialized and private high schools.

16. Specialized High Schools A high school with an animation department http://www.bchs.hs.kr/ A high school with an animation department http://www.bchs.hs.kr/http://www.bchs.hs.kr/ Korea Game Science High School http://www.game.hs.kr/ Korea Game Science High School http://www.game.hs.kr/ http://www.game.hs.kr/ Daewon Foreign Language High School http://daewon.seoul.kr/dflhs/dflhs_eng/da efh_mseng01.asp Daewon Foreign Language High School http://daewon.seoul.kr/dflhs/dflhs_eng/da efh_mseng01.asp http://daewon.seoul.kr/dflhs/dflhs_eng/da efh_mseng01.asp http://daewon.seoul.kr/dflhs/dflhs_eng/da efh_mseng01.asp

17. Korea’s Education Sector Specialized and private high schools. Specialized and private high schools. Korea has the world’s highest rate of H.S. graduates going on to higher education Korea has the world’s highest rate of H.S. graduates going on to higher education

18. Advancement/Employment Rate for High School Graduates

19. Advancement/Employment Rate for University Graduates

20. Korea’s Education Sector Specialized and private high schools. Specialized and private high schools. Korea has the world’s highest rate of H.S. graduates going on to higher education Korea has the world’s highest rate of H.S. graduates going on to higher education Korea is the number one source of international students in the United States. Korea is the number one source of international students in the United States.

22. Academic Level of Korean Students in the U.S. (2006/7 Open Doors) 45.2%undergraduate 45.2%undergraduate 38.4%graduate students 38.4%graduate students 7.2% other 7.2% other 9.2%OPT (Optional Practical Training) 9.2%OPT (Optional Practical Training)

24. Open Doors Data-Intensive English RankPlace of Origin Students S-Weeks WORLD TOTAL45,167636,522 1Korea, Rep. of (South)10,026141,336 2Japan7,45394,649 3Saudi Arabia5,047126,996 4Taiwan4,74868,868 5Brazil1,57214,351 6China1,46118,686 7France1,0087,688 8Thailand97513,105

25. The Education Deficit Refers to the growing number of students going overseas for education, especially at the secondary level and earlier. Refers to the growing number of students going overseas for education, especially at the secondary level and earlier. Large recent growth in secondary level students going abroad. Large recent growth in secondary level students going abroad.

26. Korea’s Education Sector Specialized and private high schools. Specialized and private high schools. Korea has the world’s highest rate of H.S. graduates going on to higher education Korea has the world’s highest rate of H.S. graduates going on to higher education Korea is the number one source of international students in the United States. Korea is the number one source of international students in the United States. It invests more private funds in education than other countries. Private institutes are a major political issue. It invests more private funds in education than other countries. Private institutes are a major political issue.

28. Korea’s Services Deficit

29. More Americans Coming to Korea

31. Korea’s Education Sector Specialized and private high schools. Specialized and private high schools. Korea has the world’s highest rate of H.S. graduates going on to higher education Korea has the world’s highest rate of H.S. graduates going on to higher education Korea is the number one source of international students in the United States. Korea is the number one source of international students in the United States. It invests more private funds in education than other countries. Private institutes are a major political issue. It invests more private funds in education than other countries. Private institutes are a major political issue.

33. Private Versus Public Expenditure

34. Private Education is Big Business in Korea The industry is estimated to be worth 20- 30 trillion won ($21 billion to $32 billion). The industry is estimated to be worth 20- 30 trillion won ($21 billion to $32 billion). Samsung Securities estimated the market would reach 28.6 trillion won this year. Samsung Securities estimated the market would reach 28.6 trillion won this year.

35. Private Institutes in Korea 77 percent of Korean students are getting private education 77 percent of Korean students are getting private education Averaging 7.8 hours per week Averaging 7.8 hours per week 222,000 won per child 222,000 won per child 20.4 trillion won expenditure last year 20.4 trillion won expenditure last year

36. Investment in English Education Koreans spend an estimated $16 billion per year on private institutes and tutoring. Koreans spend an estimated $16 billion per year on private institutes and tutoring. This estimate includes English lessons at the kindergarten level and expenses for those families who go overseas for study. This estimate includes English lessons at the kindergarten level and expenses for those families who go overseas for study. Source: Samsung Research Institute

38. Korea’s Education Sector Specialized and private high schools. Specialized and private high schools. Korea has the world’s highest rate of H.S. graduates going on to higher education Korea has the world’s highest rate of H.S. graduates going on to higher education Korea is the number one source of international students in the United States. Korea is the number one source of international students in the United States. It invests more private funds in education than other countries. Private institutes and the “education deficit” are major political issues. It invests more private funds in education than other countries. Private institutes and the “education deficit” are major political issues. President-elect Lee Myung Bak’s government pledges major educational reforms. President-elect Lee Myung Bak’s government pledges major educational reforms.

39. President-elect Lee Myung Bak’s Promised Reforms Doing away with the former “three nos” policy which prevented universities from Doing away with the former “three nos” policy which prevented universities from –administering their own entrance exams –ranking high schools and –accepting donations for admitting students. Giving universities full autonomy in the selection of students. Giving universities full autonomy in the selection of students.

40. President-elect Lee Myung Bak’s Promised Reforms Reducing the role of private education and strengthening the public education system. Reducing the role of private education and strengthening the public education system. Education Ministry has become the Ministry of Education, Science and Technology Education Ministry has become the Ministry of Education, Science and Technology

45. Highlights of the New Government’s English-Friendly Plan Gov’t to invest $4.2 billion over the next five years Gov’t to invest $4.2 billion over the next five years To introduce Teaching English in English To introduce Teaching English in English To outsource 23,000 teachers To outsource 23,000 teachers Reduce English class size from 35 to 23 Reduce English class size from 35 to 23 Offer immersion and other training to English teachers Offer immersion and other training to English teachers Utilize housewives and overseas Koreans Utilize housewives and overseas Koreans Introduce an English proficiency test to replace current tests Introduce an English proficiency test to replace current tests

46. Government Plan is Controversial

47. LG Electronics Adopts English

49. 2. Korea’s Information Revolution Broadband Internet and household communications expenditures Broadband Internet and household communications expenditures Exports of telecoms equipment Exports of telecoms equipment Digital Opportunity Index Digital Opportunity Index Korea’s Ubiquitous Networked Society plan Korea’s Ubiquitous Networked Society plan Limits placed by language Limits placed by language Korea’s Digital Divide Korea’s Digital Divide

50. Is this service or is this service?

54. Household Internet Access-OECD

55. Weekly Internet Access Hours

56. Household Investments in OECD Countries

57. Relative Communication Expenditures by OECD Countries

59. Korea’s Exports of Telecommunications Equipment A key measure of the information society. A key measure of the information society. Telecommunications Equipment Includes, Among Others Telecommunications Equipment Includes, Among Others –Various kinds of phone handsets –Fax machines, printers –Telephone switching devices –Broadcasting apparatus –In general—components of modern networks

60. Korea’s Exports of Telecommunication Equipment In 2005 Korea ranked third among OECD countries, after the UK and Germany and ahead of the U.S. with over $20 billion in exports (OECD Communications Outlook 2007). In 2005 Korea ranked third among OECD countries, after the UK and Germany and ahead of the U.S. with over $20 billion in exports (OECD Communications Outlook 2007). The same year it ranked 17 th in telecoms equipment imports with about $3 billion. The same year it ranked 17 th in telecoms equipment imports with about $3 billion.

62. Samsung and LG TVs and Displays

63. Indicators of the Information Age in Korea The growth rate of the IT industry in 2006 surpassed that of the non-IT industry by 3.9 times,whose proportion in total GDP exceeded 16.2% for the first time in history. Korea leads the world in the ITU’s Digital Opportunity Index

66. Indicators of the Information Age in Korea Korea’s current rate of Internet usage by those over the age 6 had reached 75.5% by June 2007, The number of broadband Internet subscribers had reached 14.44 million, indicating 90% of total households in Korea had access to broadband Internet.

67. The u-Korea Master Plan to establish developmental strategy in coping with the future informatization paradigm shift to the ubiquitous society to establish developmental strategy in coping with the future informatization paradigm shift to the ubiquitous society To facilitate IT growth To facilitate IT growth –Next generation mobile communication –Digital TV broadcasting –Displays –Next generation semiconductor

68. The u-Korea Master Plan –Digital content –Intelligent robots –Intelligent home networks –Software solutions (built-in software) –Next generation battery –Next generation PCs

69. http://www.ubiquitousdream.or.kr/

70. Songdo U-City www.songdo.com www.songdo.com

72. Korea’s Digital Divide: Communications and National Reunification The problem with “indicators” of the information age is that they apply to only half of the Korean peninsula The problem with “indicators” of the information age is that they apply to only half of the Korean peninsula Recent approval of.kp domain name for North Korea Recent approval of.kp domain name for North Korea Two parts of communication disparity: infrastructure and news/information flow. Two parts of communication disparity: infrastructure and news/information flow.

74. Language as a Limiting Factor People, including Koreans, prefer to surf the web in their own language. People, including Koreans, prefer to surf the web in their own language. In Korea, almost everyone uses Naver to search, for one reason. It is all in Korean. In Korea, almost everyone uses Naver to search, for one reason. It is all in Korean. Web usage in Korea only started to increase when the number of.kr domains dramatically increased, indicating Korean- language content. Web usage in Korea only started to increase when the number of.kr domains dramatically increased, indicating Korean- language content.

77. Growth of.kr domains

80. The Fulbright Commission in Seoul, Korea Founded by the U.S. and Korea just before the Korean War broke out. Founded by the U.S. and Korea just before the Korean War broke out. One of the largest Fulbright Commissions worldwide. One of the largest Fulbright Commissions worldwide. Three major areas of activity: Three major areas of activity: –Fulbright grants and some other smaller grant programs. –U.S. Education Center –a State Department Affiliated Advising Center –Academic Testing

86. Services for U.S. Educational Institutions Our U.S. Education Center works with all major U.S. study fairs in Korea. Our U.S. Education Center works with all major U.S. study fairs in Korea.

89. Services for U.S. Educational Institutions Our U.S. Education Center works with all major U.S. study fairs in Korea. Our U.S. Education Center works with all major U.S. study fairs in Korea. We provide an array of web and event services to help U.S. schools promote themselves to prospective Korean students. We provide an array of web and event services to help U.S. schools promote themselves to prospective Korean students.

94. Services for U.S. Schools Our U.S. Education Center works with all major U.S. study fairs in Korea. Our U.S. Education Center works with all major U.S. study fairs in Korea. We provide an array of web and event services to help U.S. schools promote themselves to prospective Korean students. We provide an array of web and event services to help U.S. schools promote themselves to prospective Korean students. We work closely with the Korea Overseas Study Association (KOSA) We work closely with the Korea Overseas Study Association (KOSA)

96. Services for U.S. Schools We’re launching an English-language blog for U.S. schools and educational organizations http://fulbrightkorea.wordpress.com/ We’re launching an English-language blog for U.S. schools and educational organizations http://fulbrightkorea.wordpress.com/ http://fulbrightkorea.wordpress.com/ A description of our services and prices can be found at http://www.educationusa.or.kr/en/usec/se rvices.php#02 A description of our services and prices can be found at http://www.educationusa.or.kr/en/usec/se rvices.php#02 http://www.educationusa.or.kr/en/usec/se rvices.php#02 http://www.educationusa.or.kr/en/usec/se rvices.php#02