Asia. HRD and Socio-Economic Achievement In Korea Dr. Soobong Uh. Professor, Koreatech. Society

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1 HRD and Socio-Economic Achievement In Korea Dr. Soobong Uh Professor, Koreatech

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

3 % Fact 1: Trend of higher education in Korea Primary school junior school Junior school High school High school college College graduate School year

4 Rank Science performance Fact 2: PISA 2006 results Reading performance Mathematics performance 1 Finland (563) Korea (556) Finland (548) 2 Canada (534) Finland (547) Korea (547) 3 Japan (531) Canada (527) Netherlands (531) 4 New Zealand (530) Ireland (517) Switzerland (530) 5 Korea (522) Australia (513) Canada (527) 6 Germany (516) Poland (508) Japan (523) 7 United Kingdom (515) Sweden (507) New Zealand (522) 8 Czech Republic (513) Netherlands (507) Belgium (520) 9 10 Switzerland (512) Austria (511) Belgium (501) Switzerland (499) 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 Consequence 1: Fast economic development 20, , , , , , , , , , Gross national income Primary school junior school Junior school High school High school college College graduate School

6 42% Consequence 2: Low Unemployment 9.7% % 7.2% 7.5% 8 5.1% 6 4.0% 1.7% 3.1% 2.5% 3.9% 3.2% 4 2 0

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

8 Consequence 3: Social Equity (Gini coefficient)

9 A report, titled, "Inequality in, a publication of n Development Bank(ADB) on the past year, showed that, out of 22 n 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 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. 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

11 Why higher education in Korea? 1. Historical Background 2. Economic Motivation 3. Social Incentives 4. 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 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. 工 商

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 Daesung School in Pyungyang founded in 1908 Mundan-soorok, a writing in Korean and Chinese characters by Ahn, Chang Ho( ) keeping a record of Daesung School located in Pyungyang

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 Daejeon, South Korean Civilians murdered by retreating PLA Civilians fleeing south over Daedong River, using destroyed bridge Pyongyang

19 Liberation from colony and the Korean war had totally demolished physical capital as well as social class. 1. Land reform: No large landlord 2. 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 The trend of the rate of return from educational investment Source : An estimation based on Statistical Survey on Wages, Ministry of Labor, Korea

21 Trend of the rate of return from educational investment: by gender and schooling Male graduates College Female graduates College 15.0 Male graduates high school 10.0 Female graduates high school 5.0 Source : An estimation based on Statistical Survey on Wage Frame, the Ministry of Labor, Korea

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

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): Only 10 major university graduates have 73.8% of positions in high-ranking government offices % 8.6% 7.7% 7.7% 6.1% 5.6% 5.5% 2.9% 2.8% 2.6%

27 107 Countries World Average (20.09 ) Social Incentive 2 : lower birth rate 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. 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) 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 persons on the global average. 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) 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.

28 The total fertility rate, or the number of children per woman's lifetime, stands at 1.28 in Korea in > 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 1. Higher income 2. Job Security 3. Social status 4. 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, %) Total Budget(A) 446 5,804 22,689 54, , , , , , ,145 Education(B) 78 1,099 5,062 12,496 19,172 20,034 22,273 24,404 26,340 27,982 B/A(%) Of GDP(%) Schooling expenditure 144 1,971 8,524 19,215 31,507 35,321 38,830 46,035 48,258 49,525 Of GDP(%) Source : Ministry of Education

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 of school teachers wages(2004) Rank Entry 15th years after last : 10 Luxembourg Switzerland Germany Spain : Korea 86,712 42,445 39,132 35,098 : 28,449 Luxembourg Switzerland Korea Germany 83,390 55,115 48,754 48,167 Luxembourg Korea Switzerland Japan 115,899 78,351 66,189 58,373 * unit: USD(PPP) * source: OECD

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

34 Trend of competition to be school teachers for the recent three years District Seoul Incheon Gyeonggi-do Deajeon Chungcheongnam-do Chungcheongbuk-do Gwangju Jeollanam-do Jeollabuk-do Busan Ulsan Gyeongsangnam-do Daegu Gyeongsangbuk-do Gangwon-do Jeju-do total

35 Challenges : Is higher education always good? 1. Too Fast? - Skill Mismatch between demand and supply -> Higher rate of youth unemployment and Less technicians 2. Quality? - Increasing Complaints on quality of higher education => Reform of Higher Education is on-going.

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