1. Evolution and Reform of Public Employment Service in Korea
September 17, 2014
Kilsang YOO
President, Korea Employment Information Service (KEIS)
Vice President, Asia and the Pacific Region,
World Association of Public Employment Service (WAPES)

2. Contents I II III IV Historical Development of Korean PES
Outline of Current Korean PES
III
PES Reform in Korea IV
Conclusion

3. I Historical Development of Korean PES 1. Colonial Period (1910-1945)
In 1922, the first Public Employment Office was opened.
The public employment offices were in the front line of colonial exploitation by compulsory mobilization of Koreans.
Formation of bad image on PES in Korea
2. A Dark Period ( )
The Employment Security Law was enacted in 1961
Municipal PES offices (44) ⇒ low quality of services
Amendment of the Employment Security Law in 1967
Change the jurisdiction of PES offices from municipal to central government (the Administration of Labor)
In 1972, PES offices (44) were integrated into the Local Labor Offices as an Employment Security Division. ⇒ Retrocession of PES
In this period, Korean government was reluctant to develop PES due to the bad image on PES, formed in Japanese colonial period.
This caused the uncontrolled private employment agencies to provide low quality and unlawful services.
Fixation of bad image on employment services

4. I Historical Development of Korean PES (cont.)
3. Dawning Period of PES ( )
Introduction of Employment Insurance (EI) in July 1995 served as a momentum of PES development for operation of EI programs.
In the process of introducing EI, the Employment Insurance Research Commission, which was in charge of designing Korean EI model, recommended a semi-autonomous public employment agency for administration of EI programs and development of PES.
The Ministry of Labor decided the local labor offices (44) to implement EI programs and employment service.
4. Expansion Period of PES ( )
Korean financial crisis in late 1997 gave an opportunity to develop PES to overcome high unemployment and to change deep-rooted bad image on PES.
For payment of unemployment benefit, the Ministry of Labor established local Job Centers under the local labor offices and increased staffs of the PES.
The number of Job Centers : 99 (1998) → 122 (1999) → 168(2001) → 118 (2004)
The staffs of Job Centers were consisted with civil servants (22%) and non civil servant job counselors (78%).

5. I Historical Development of Korean PES (cont.)
5. Development Period of PES (2004-present)
On April 6, 2005, President of Korea declared that development of PES shall be implemented as a national agenda project.
Turn the non civil vocational counselors into civil servants (in 2006)
Merging Job Centers for optimal size : 118 (2004) → 82 (2008)
Increased the number of staffs of Job Centers : 2,500 (2005) → 4,769 (2012)
Development of employment information service system : established KEIS (2006)
Introduction of in-depth counseling : target specific individualized services
Introduction of competition among ministries and provincial/municipal governments
Introduction of target specific job centers for the career break women, disabled, aged, veterans, etc. (become more complex)
The following governments also have implemented development of PES as a national agenda project.
In 2009, Korea introduced a tailored employment support program for low-income job seekers, called “Employment Success Package Program”, and has expanded it year by year.
Current government has focused “Tailored Employment/Welfare” as a major national policy of PES and welfare.
“Job/Welfare Plus Center” (one-stop employment/welfare service center)

6. Municipal Job Centers(289)
Outline of Current Korean PES II
1. Public Employment Service Network
Regional Employment
and Labor Office (6)
Special Job Centers
for the Disabled(18), Women(120), Veterans(5) and Outplacement Service Center(25)
Municipal Job Centers(289)
Job Center (83)
Job matching,
Job counseling, Unemployment Benefits
Planning & Management Division
Employment Support Division I, II
Job Skills Development Division
Enterprise Support Division
Local Cooperation Division
Benefit Fraud Investigation Division
Supporting vocational training
Subsidies, Employment Permit for migrant workers
Development of local partnership

7. II Outline of Current Korean PES (cont.)
2. Structure of Korean Employment Services
Category
Organizations
Central Government
Ministry of Employment and Labor (MOEL) : Job Centers (83), Job/Welfare Plus Center (5)
Ministry of Patriot & Veteran : Job Centers for patriots and veterans (3)
Ministry of Defense : Job Centers for veterans (2)
Public Institutions/NPO
KEIS (MOEL)
Job Centers for the disabled (18) (Employment Promotion Agency for the Disabled : MOEL)
Korea Job World (1) (MOEL)
Outplacement Service Center for the Mid-aged (25) (subsidized by MOEL)
Women New Job Centers (120) (subsidized by Ministry of Gender Equality and Family)
Provincial/Municipal
Government
Provincial/Municipal Job Centers (289) (small size)
Private Employment Agency
PrEAs (9,000), Temporary Work Agencies (2,000)

8. II Outline of Current Korean PES (cont.)
3. KEIS (Korea Employment Information Service)
Major Functions of KEIS
Collects, analyzes and provides information on the labor market
Forecasts demand and supply of manpower
Implements panel surveys such as Youth Panel, Graduate Occupational Mobility Survey, Korea Longitudinal Survey for the Aged, Employment Path Survey for High School Graduates, Employee Mobility Survey
Develops and evaluates tailored employment support programs and career guidances
Assists development of public and private employment services
Monitors and evaluates major labor market programs
Develops and operates employment information networks such as Work- Net( Human Resources Development Network(hrd.go.kr), Employment Insurance Network( Employment Permit System( Ilmoa System(

9. II Outline of Current Korean PES (cont.)
Major Employment Information Networks of KEIS
Private
Job
Portals
Contracted-
out
Providers
Job Centers of Other
Ministries
HRD
Korea
QNet
Municipal
Centers
Subsidized job bank
(open 2009)
Employment support
of migrant workers
(open 2004)
Employment Support
Job bank
Application for jobs and job seekers
Tailored employment support
Career guidance information
(open 1998)
Labor Market Analysis System
EIS
Management of covered employees and enterprises
Administration of EI programs
(open 1995)
Employment Insurance
Vocational Training
VT support for job seekers and the employed
VT support for employers
Individual Training Account
(open 2003)
National
Health
Insurance
Service
Tax
Authority
Tailored employment & welfare support
(open 2012)

10. III PES Reform in Korea 1. Directions of PES Reform
Korean government has reformed PES since 2005.
Basic Directions of PES Reform
Modernization of local job centers
Individualized tailored service for vulnerable groups : customer-focused, case management approach, streamlining services through integration of programs
Establishment of one-stop service delivery system, closer linkage between employment services and welfare services
Development of local partnership in employment and welfare services
Strengthen infrastructure for better employment information services: KEIS
Activation for welfare recipients
Performance-based approach to services

11. Case I : Employment Success Package Program
PES Reform in Korea (cont.)
III
2. Cases of PES Reform
Case I : Employment Success Package Program
Korea has implemented a pilot employment support package program for low-income job seekers, called “Employment Success Package Program”, since 2009 at PES and PrES.
This was the first customized case management approach in employment service in Korea (like the New Deal in the U.K.).
The project produced good results, reaching 62% in employment rate (at the end of March, 2013).
Based on the good performance, it has been expanded the annual size of service volume and target groups from low-income job seekers to the youth and the displaced middle-aged since 2012.
Type Ⅰ : for low-income job seekers
Type Ⅱ : for the Youth and the displaced mid-aged job seekers

12. Case I : Employment Success Package Program (cont.)
PES Reform in Korea (cont.)
III
2. Cases of PES Reform (cont.)
Case I : Employment Success Package Program (cont.)
Service Flow of the Employment Success Package
1st Stage
Diagnosis of employment barriers
Enhancement of willingness to work
Formulation of Individual Action Plan (IAP)
<3 weeks>
2nd Stage
Enhancement of job competency (Free vocational training)
Enhancement of job adaptive power
Subsidized work experience
<6 months>
3nd Stage
Intensive Job placement (3 months)
Accompanied job interview
Tailored job search skill clinic
Employment success allowance
After Service
Job adaptive support for employed participants
Further intensive job placement for unemployed participants
<3 months>
Participation allowance
(maximum 200,000 KRW)
Participation allowance
(maximum 400,000 KRW per month for 6 months)
Employment success allowance
(1 million KRW;
sustain employment for
1 month: 0.2M KRW,
3 months: 0.3M KRW,
6 months: 0.5M KRW)

13. Partnership in Employment Success Package Program
PES Reform in Korea (cont.)
III
Partnership in Employment Success Package Program
Planning, Budgeting, &
Monitoring
MOEL
Research
Program design & consulting
Development of service manual
Performance evaluation
MOEL
Job Center
Case managers
Municipal Gov't
Case managers
Training
Training case managers
Workshop for sharing best practices
implementation
Program
Finding target
people and
connecting to
Job Center
Contracted-out
PrES/PES
Case managers
Information
Network
Development & management of information network for the program

14. Case II : Job/Welfare Plus Center
PES Reform in Korea (cont.)
III
2. Cases of PES Reform (cont.)
Case II : Job/Welfare Plus Center
Background
Problems with segmented, provider-oriented, and very complex employment and welfare delivery channels
Two many similar employment support and welfare programs
Little partnership in each level of services
(Central-Central) Segmented and duplicated services from diverse ministries
(Central-Local) Services also segmented and too many similar programs
(Public-Private) Low quality services and limited public-private partnership

15. Case II : Job/Welfare Plus Center (cont.)
PES Reform in Korea (cont.)
III
2. Cases of PES Reform (cont.)
Case II : Job/Welfare Plus Center (cont.)
Characteristics of Job/Welfare Plus Center
Integrated model of job placement, business creation, welfare services, health and medical services, and micro credit financing service with one stop visit under the one roof, same branded office
Central-local & public-private partnership model
Provide one-stop employment and welfare services
The first pilot Job/Welfare Plus Center was opened on 6th January, at Namyangju City in cooperation with various employment/welfare related agencies.

16. III PES Reform in Korea (cont.) 2. Cases of PES Reform (cont.)
Case II : Job/Welfare Plus Center (cont.)
Participating organizations of Namyangju One-stop center
Organizations
Officers
Services
Job Center (MOEL) 16
Job placement, unemployment benefit, career counseling, vocational training, employer services
Municipal Job Center 9
Job placement
New Job Center for Women (YWCA)
Job placement, vocational training, internship, group counseling
Local Workfare Center
(YWCA) 12
Workfare works, vocational training, welfare to work program
Municipal
Welfare Service Center 4
Welfare counseling, individual case management, public assistance services
Namyangju Job/Welfare Plus Center

17. Overall view
Initial counseling/First visit client
Unemployment Benefit
Micro Credit Financial Counseling
Women New Job Center
Job Success Package Program
Welfare Service/Municipal Gov’t
Job Matching Service
VT Counseling/Training Account

18. Case II : Job/Welfare Plus Center (cont.)
PES Reform in Korea (cont.)
III
2. Cases of PES Reform (cont.)
Case II : Job/Welfare Plus Center (cont.)
Performance of the Namyangju Pilot One-stop Center
Increase in the number of visitors : 163% for New job center, 23% for Municipal Job center
Increase in the number of job placement : 123.8% (MOEL Job Center + New Job Center for Women + Municipal Job center)
Increase in customer satisfaction
70.6% of customers were satisfied(4.0/5.0)
86.0% of customers answered that they will re-visit and re-use one-stop center
Government’s Future Plan
Already opened 5 one-stop centers and 5 more in 2014, will open 20 one-stop centers in each year until 2017 (Total 70 one-stop centers by 2017)

19. Conclusion IV 1
Korea has experimented many diverse PES models, but Korean PES is still designing its blue print. 2
Korean experiences show following implications:
One-stop service center with unified governance is effective in job matching and activating people.
Individualized tailored employment and welfare services are useful.
Development of employment information service and integration of on/off-line service institutions are essential.
Central-central, central-local, public-private partnership is important.
Profiling of job seekers are necessary for focusing more vulnerable groups.
Appropriate case load per case manager and number of qualified case managers are essential for tailored case management.

20. Thank you
for your attention!