Qualification System in Korea

(1)

RM 01-10

Qualification System in Korea

Korea Research Institute for Vocational Education and Training

(2)

K RIV E T b o ok le t s e rie s

V o c at io n al E du c at io n S y s t e m in K ore a

1. Definition of v ocational education

2. History of v ocational education in Kor ea 3. Leg al m ech anism s

4. M an ag em ent and administr ation 5. Pr ovider s of v ocational education

5.1 Vocation al high school 5.2 Junior colleg e

5.3 Univ er sity of technology 5.4 Gener al high sch ool 6. Pr ospect s and t ask s

V o c at io n al T rain in g in K ore a

1. History

2. In stitutional fr am ew ork

2.1 Inintiativ es b ased on the Vocation al T r aining Pr om otion Act 2.2 Collabor ativ e net w ork of or g anization s

3. Curr ent pr actice

3.1 Vocation al tr aining st atistics (1998 ~ 2000) 3.2 Differ ent types of v ocational tr aining 4. F utur e pr ospect s

Qu alif ic atio n S y s t e m in K ore a

1. In stitution fr am ew ork 2. National qu alification s

2.1 Intr odu ction of nation al qu alification s 2.2 Curr ent pr actice

3. Priv ate qu alification s

3.1 INtr oduction of priv ate Qu alification s 3.2 Curr ent pr actkce

3.3 Nation al r ecogtnition of priv at e qu alification s 3.4 Qu alification testing in th e w orkplace

(3)

Care e r Gu idan c e in K ore a

1. In stitutional fr am ew ork 1.1 Leg al m ech ani는 1.2 A dm initr ation 2. Deliv ery sy stem

2.1 F or stu dent s in schools 2.2 F or adult s

3. Car eer inform ation net w ork 3.1 Car eer - Net

3.2 W ork - Net

4. Center for Car eer Dev elopm ent 4.1 F unction

4.2 A ccomplishm ent s 5. F utur e Pr ospect s

E - T rain in g in K ore a

1. T he begining of e - T r aining in Kor ea 2. Leg al m ech anism s

3. E - T r aining st atistics 3.1 T r aining pr ovider s 3.2 T r aining cour ses

3.3 Learner s and in stru ctor s

3.4 Cont ent s , h ar dw ar e and sy stem 4. F utur e pr ospect s

(4)

Tables

Table 1. Characteristics of qualifications by category 1

Table 2. Areas recommended for different qualification types 2

Table 3. Number of national qualifications managed by each ministry 5

Table 4. Accreditation of private qualifications by ministry 12

Table 5. Standards for recognition of intra-company qualifications 16

Figures

Figure 1. Distribution of private qualifications by occupational fields 8

Figure 2. Procedures of accreditation of private qualification by the

government 10

(6)

1. Institutional framew ork

The qualification system in Korea has mainly been controlled by the government, which has resulted in limited private sector participation.

This all changed in 1997 with the adoption of the Framework Act on Qualifications (see p.14). The Framework Act on Qualifications promoted the introduction of private qualification system, which led to increased diversity in the overall qualification system. Framework Act on Qualifications divided qualifications into two types: the National qualifications administered by the government and the Private qualifications administered by organizations not affiliated with the government. See Table 1 below.

The two categories can be further divided into:

1. national qualifications consist of national technical qualifications and non-technical national qualifications.

2. private qualifications consist of qualifications administered by organizations independent from the government, private qualifications that have received government recognition for their validity, and intra-company qualifications specifically aimed at fostering the acquisition of certain skills by employees in a company .

Table 1. Characteristics of qualif ications by categ ory

National Qualifications Private Qualifications

Qualification Administrator

the government or a private institute commissioned by the government (e.g. HRD Service of Korea, Korea Chamber of Commerce & Industry, etc.)

individuals, private organizations or institutes

Qualification Type

national technical qualifications (607)

non-technical national qualifications (120)

qualifications administered by the private sector (259)

private qualifications accredited by the government (28)

Intra-company qualifications

*Number in the parentheses indicate the number of qualifications of the kind.

(7)

Different types of qualifications in Korea are recommended for different industries. As seen in Table 2, national (technical) qualifications are primarily administered in the core national industries and fields related to the health and safety of the general public. Private qualifications are administered in fields and industries that are not effectively covered by national qualifications.

Table 2. A reas recommended f or diff erent qualif ication typ es

National (Technical)

Qualifications Private Qualifications

Areas suitable for qualification

type

Sectors related to developing and delivering human resources needed for the core national industries

Sectors directly influencing public life and security

Sectors where there is at present only a limited demand for qualifications, but where that demand is expected to grow in view of the nation's industrial development

Sectors in which there are professional groups, occupational associations and enterprises have the accumulated capacity to manage qualifications to meet certain domestic and/or international standards.

Sectors where qualifications are in demand, but where the government has neglected or failed to establish a specialized qualification system and thus there is a need to adapt foreign qualifications or to develop new qualifications.

2. National Qualifications

2.1. Introduction of national qualifications

National qualification is defined as a qualification that is implemented and managed by the government in accordance with the Framework Act on Qualifications.

(8)

Since the 1960s, Korea has pursued economic development through government planning. As a direct result, mainly the government has controlled the Korean qualification system.

In the era of fast-track economic development, the government focused on the development and fostering of a qualified industrial human resource pool that was exploitable for the economic development drive.

In such atmosphere, the National Technical Qualification System was created in 1973 as the National Technical Qualifications Act was legislated.

Before the Act, the management of technical qualifications was generally divided into:

1. the management of technology related qualifications based on the legal regulations for each industry applied since 1958

2. the management of skills testing policies based on vocational training regulations that were adopted in 1967

3. the management of testing for office work qualifications that have been implemented by the private sector from the late 1950s on.

Since technology related qualifications at the time were designed to serve the specific obj ectives of the relevant ministry, standards for each technical qualification often varied, resulting in the weakening of public confidence or trust in these qualifications. Moreover, overlap and redundancy in similar qualifications caused confusion and waste of money and effort on the part of workers seeking to have their skills officially recognized. With this as a backdrop, a growing need for standardized testing played a pivotal role in the introduction of national technical qualifications (NTQs) administered by the government.

Implementation of the NTQ system was the result of combined efforts to establish a consistent qualification system and to promote economic development by giving the due preferential treatment to qualification holders.

2.2. Current practice

National Qualifications are divided into two large categories depending

(9)

upon the mode of their operation and the different laws that form their legal basis.

One of these categories is the national technical qualifications. The NTQs have been systematically managed by a single regulation (National Technical Qualification Act) and the qualification tests have been conducted by public institutions, such as the Human Resources Development Service of Korea (HRD Korea) and Korea Chamber of Commerce and Industry (KCCI). As of January 2001, as many as 590 NTQs in 27 areas, including the 20 NTQs managed by the KCCI, can be earned by people who meet the criteria.

The government is pushing for transferring these tests to various specialized private institutions for the following reasons:

1. To reflect in NTQs the changes in knowledge and technology 2. To strengthen expertise and professionalism as well as to enhance the public availability of qualifications.

The other category includes all national qualifications in non-technology areas. These non-technical national qualifications (NTNQ) are defined by the different laws that are most relevant, such as the Medical Service Act, Attorney-at-Law Act, Customs Act, etc.

NTNQ is the category comprising all qualifications that are not NTQs but which are administered by the government in the sense that the testing and evaluation of the applicant's performance are carried out by the government. NTNQs are recognized and managed by different ministries and their respective laws. The qualification system and mode of qualification management thus naturally vary among the diverse NTNQs. Most often, each NTNQ serves as a license for the holder to practice a specialized profession, such as law, patent law, medicine, nursing, etc., that may affect the maintenance of social order or the life and safety of citizens.

There are 120 NTNQs subscribed by 55 laws drafted by 2 1 ministries as of 1999. Ministry of Health and Welfare is responsible for as many as 27 qualifications, topping other ministries in the number of qualifications it manages. Next come Ministry of Construction and Transportation with 15 qualifications, and Ministry of Maritime Affairs

(10)

and Fisheries with 14 qualifications. Table 3 shows the number of qualifications each ministry has under its j urisdiction.

Table 3. N umber of national qualif ications manag ed by each ministry

Ministry Number of

qualifications

Ministry of Health and Welfare 27

Ministry of Construction and Transportation 15

Ministry of Maritime Affairs and Fisheries 14

Ministry of Culture and Tourism 10

Ministry of Agriculture and Forestry 8

Ministry of Education and Human Resources Development 7

Ministry of Science and Technology 7

Korean National Police Agency 4

Ministry of Labor 4

Financial Supervisory Commission 3

Ministry of Commerce, Industry and Energy 3

Ministry of Information and Communication 3

Small and Medium Business Administration 3

Korea Customs Service 2

Korea Forest Service 2

Ministry of Finance and Economy 2

Ministry of Government Administration and Home Affairs 2

Korean Intellectual Property Office 1

Ministry of Court Administration 1

Ministry of Justice 1

National Tax Service 1

TOTAL 120

(11)

3. Private Qualifications

Private qualification, under Framework Act on Qualifications Article 2, Paragraph 3, is defined as "qualification which is instituted and managed or operated by j uristic persons, organizations, or individuals other than the State." Whereas the managing responsibility for national qualifications lies with the government, private qualifications are managed by non-governmental entities. Although private qualifications are in principle managed independent of the government, those private qualifications in sectors that may compromise the soundness of social order and customs, or in those which are directly related to the lives, health or safety of citizens, or in those requiring highest ethical standards may be the subj ect of government control and monitoring to a degree.

3.1. Introduction of private qualifications

Private qualifications in Korea first appeared during the latter half of 1950s to recognize the various skills needed in office work, such as abacus calculation, bookkeeping and typewriting. Qualification testing at the time was performed by professionals in the private sector who had mastered those skills. With the aim of ensuring sound management of qualifications and the reliability of qualification testing, the government adopted the policy of unifying the channel of supervision, under which the Bureau of Labor (currently Ministry of Labor) was put in charge of overseeing qualifications in 1977. With the amendment of the National Technical Qualification Act in 1981 and the Enforcement Decree in 1982, all qualifications in office work were transferred to the category of NTQs.

Afterwards, until the enactment of the Framework Act on Qualifications, the general consensus remained that qualifications management was the domain and responsibility of the State. Under the circumstances, few, if any institution operated private qualifications, with the exception of a limited number of qualifications in areas such as information, office management and business administration in a more or less disorganized fashion. Other rare instances of private qualification were found in companies that offered its workers intra-company

(12)

qualifications, which were recognized within the company but rarely anywhere else.

This may be understood to be a result of the government driven economic development strategy . Since, however, the enactment of the Framework Act on Qualifications in 1997, various private qualifications were introduced in various industries.

The Framework Act on Qualifications was enacted after the Education Reform Committee in 1996. It proposed a directive to reform the qualification system, arguing that an effective qualification system is a primary condition for enhancing national competitiveness through a macroscopic education policy . The Committee also asserted that qualification system is essential in facilitating labor supply on the one hand and lifelong career planning of individuals on the other. The information was produced in its report, Educational Ref orm f or the Construction of a New Vocational Education System II .

The private qualification system is at present in its early stages, and has yet to be fully optimized in its capacity . Moreover, administrators of private qualifications have not yet stabilized an efficient system of qualifications testing and quality control.

To remedy this, the Korean government vigorously pursues various legal strategies and carefully facilitates the proper management of private qualfications. In addition, maj or policies to facilitate private qualifications include government support for intra-company qualifications and the evaluation and recognition of private qualifications by authorities commissioned by the government.

3.2. Current practice

According to Korea Research Institute for Vocational Education and Training, 259 types of private qualifications were being managed as of the end of year 2000. Since no system has been established to register and/or manage private qualifications, there may be many unconfirmed or unidentified private qualifications.

The distribution of private qualifications by occupational fields are shown in Figure 1. Presently, private qualifications are concentrated in occupational fields that are ineffectively covered by national

(13)

qualifications, including management/administration, education/social welfare, sports/fitness, and computer/information technology .

Fig ure 1. Distribution of p rivate qualif ications by occup ational f ields

3.3. National recognition of private qualifications

A national system of granting government recognition to private qualifications went into effect in 2000. This system provides support and acknowledgment for private qualifications administered by corporations, institutes, or individuals, other than the national government, that conform to social needs and qualifications, pursuant to the Framework Act on Qualifications.

The accreditation of private qualifications by government authorities is led mainly by five motivations:

1. To enhance the j ob capacities of citizens as a whole by fostering the private qualifications system;

2. To provide support for private qualification system at the national level;

3. To increase the reliability of private qualifications;

(14)

4. To set up a competitive system of accrediting private qualifications and thereby encouraging quality improvement in the development and management of private qualifications;

5. To foster competition between national qualifications and private qualifications and thereby upgrade the qualification system as a whole.

A private qualification should meet a number of conditions to be eligible for accreditation by the government. The applicant, in this case the administrator of a private qualification, should be equipped with the capacity to manage and operate qualifications in keeping with what is intended in the Framework Act on Qualifications. The applicant should also have had performed at least three qualification testing in a substantially organized and systematic fashion. Moreover, a minimum of one year should have passed since the first testing. If there is a similar national qualification existing, then the private qualification applying for accreditation should conform to or be comparable with the national qualification in terms of assessment standards, test subj ects, and conditions of eligibility .

Even when otherwise fully qualified, the applicant may be disqualified if the administrator is a minor or a bankrupt who has not been reinstated. Record of having been sentenced to imprisonment will also disqualify an applicant.

The head of the related administrative body of the central government may annul the accreditation if; first, the administrator of the private qualification acquired the accreditation through fraud or other illegal means; second, the accredited private qualification has been administered or been managed in an improper manner; third, the accredited private qualification has been administered or been managed in discordance with the directions specified in the accreditation; or fourth, the administrator is found to fall into one of the conditions for disqualification.

There are a set procedures for the accreditation of a private qualification. First, the private qualification administrator seeking government recognition for the qualification should submit an application form and required documents to the President of Korea Research Institute for Vocational Education and Training (KRIVET).

Within three months from the date the application is filed, the

(15)

(16)

3.3.1. Key actors in the accreditation of private qualifications

Korea Research Institute f or Vocational Education and Training

KRIVET is at the very center of giving national accreditation to private qualifications. The institute performs the following functions:

announcement of due date and guidelines for application for private qualifications accreditation

screening of application forms and documents

research, analysis, and gathering of opinions on private qualifications applying for government accreditation

deliberation with related government authority on accrediting a private qualification

requesting review of application by the VET Policy Review Committee

reporting results of review by the VET Policy Review Committee to the relevant government authority

reporting final results of accreditation to the next VET Policy Review Committee in session

promoting national accreditation of private qualifications to the general public and providing consulting to those interested in applying Central g overnment authorities

Government authorities perform the following functions in the accreditation of private qualifications:

deliberation with KRIVET on the application submitted by the private qualification administrator, before KRIVET officially requests a review by the VET Policy Review Committee

accredits those private qualifications approved by the VET Policy Review Committee

notifies the applicant of accreditation result delivers accreditation documents

annuls accreditation when substantial reason exists

monitors the management and administration of nationally-accredited private qualifications as follow-up

(17)

VE T Policy Review Committee

The VET Policy Review Committee reviews the results of research and analysis conducted by KRIVET on applying private qualifications.

3.3.2. Accreditation of private qualifications by ministry

National accreditation of private qualifications, first introduced in 2000, now covers 30 qualifications accredited by 7 ministries, as shown in Table 4.

Table 4. A ccreditation of p rivate qualif ications by ministry Ministry

Number of private qualifications accredited

by the ministry

Ministry of Labor 15

Ministry of Commerce, Industry and Energy 5

Ministry of Information and Communication 4

Ministry of Finance and Economy 3

Korea Forest Service 1

Ministry of Education and Human Resources

Development 1

Public Procurement Service 1

TOTAL 30

These qualifications can be divided into several fields including: 14 qualifications in the technology and skills area, 4 in the field of information technology, 3 in general office work, 5 in management and administration, and 2 in the field of language.

(18)

3.3.3. Advantages for holders of nationally accredited private qualifications

Holders of nationally accredited private qualifications enj oy various benefits. For example, the qualification may give advantage to the holder in applying to enter a school at higher level, or after having been accepted, count as academic credits. Public officials may receive additional points towards promotion for a qualification they have earned.

These incentives are expected to contribute greatly to the utility of private qualifications accredited by the government and, therefore, are expected to attract greater public interest.

According to the law, the government reserves the right to extend preferential treatment for private qualifications as follows:

Framework A ct on Qualif ications

This law exempts holders of government accredited private qualifications from taking all or part of testing for national qualifications, as other acts specify case by case.

In addition, holders of nationally accredited private qualifications may benefit from similar treatment as acquired by relevant national qualifications as relevant laws specify, if the qualification standard, test subj ects, eligibility of applicants and other indicators of the quality of the private qualification are equal to or commensurate with those of its national counterpart.

In addition, heads of vocational training institutions may refer to national qualifications or private qualifications accredited by the government as one of the data based on which to decide an applicant's admission to the institution.

National Technical Qualif ications A ct

To promote exchange and convertibility of qualifications, this Act exempts in part or all of technology-related qualifications testing when holders of government accredited private qualifications apply for NTQs.

Vocational Education and Training Promotion A ct

This Act specifies that, when vocational training and education

(19)

institutions admit students, the holders of qualifications under the National Technical Qualifications Act and/or the Framework Act on Qualifications or any other law related to qualifications, may receive preferential treated if they intend to enroll in institutions of higher education. This Act further specifies that holders of nationally accredited private qualifications may also receive preferential treatment when applying for higher education institutions.

A ct on A cademic Credits Recognition, etc.

This Act states that those who have acquired qualifications or passed tests specified by law (such as the test on achievement through self-taught learning) may have their attainment recognized as credits.

Qualifications that may be translated into credits include the NTQs, NTNQs, and nationally accredited private qualifications.

Private qualifications that have been accredited by the government count for equal amount of credits as do national qualifications.

Decree on App ointment of P ublic Off icials

The Decree on Appointment of Public Officials states that, when preparing a potential promotion list, public officials who have acquired one or more qualifications may receive additional points as specified in the administrative order. In the Rule on Grading Public Officials, which was amended on March 14, 1998, it is further specified that national qualifications that have been identified by the minister as being closely related to the tasks and responsibilities of the public official in question, and other qualifications that the minister recognizes as valid in equal value as the identified national qualifications may give the holder extra points.

Enf orcement D ecree of the Higher Education A ct

This Act states that, when selecting applicants for industrial or professional colleges through special student screening, holders of national qualifications or government accredited private qualifications as specified in the Framework Act on Qualifications may be given preferential consideration.

(20)

3.4. Qualification testing in the w orkplace

An intra-company qualification is administered by a company either solely or j ointly with other businesses for the purpose of developing the workers' skills and work capacity . This initiative is being actively supported by the government. Article 26, Paragraph 1 of the Enforcement Decree of the Employment Insurance Act, for example, provides the basis on which government can support the development and management of qualifications by and within enterprises.

Intra-company qualification, that may be supported under the Employment Insurance Act must meet the following requirements:

1. The qualification shall be managed by an employer alone or in partnership with others for the employees of his/her enterprise or of closely related enterprises,

2. The qualification shall be directly related to the goods or services produced by the enterprise and shall not overlap with NTQs,

3. There shall be provisions enacted and enforced, that define preferential treatment of holders of the qualification in terms of promotion, upgrading, and/or compensation,

4. No fee or expense shall be collected from employees intending to acquire the qualification to cover costs of managing or operating the qualification.

Intra-company qualifications, however, began to be widely adopted in Korea only after the Regulation on the Support of Intra-company Qualifications (Regulation of the Department of Labor, No. 4 16, promulgated on February 4, 1999). It had been enacted, in which were specified the standard and scope of support funds provided to employers performing qualification testing for the enhancement of employee work capacity and technical proficiency .

The standard for recognition of intra-company qualifications under the Regulation is shown in Table 5. Applicants/employers must file for recognition with the appropriate application form to be submitted to the Minister of Labor, the closing statements of the financial year directly preceding the year in which the application falls, the testing plan for the

(21)

year in which the application date belongs, and regulations on the performance of the intra-company qualification, among other required documents.

If, on the other hand, the employer who received recognition intends to make modifications, for instance, the name of the qualification or the regulations on the operation of the intra-company qualification, he/she shall acquire permission for the modification from the Minister of Labor.

Table 5. Standards f or recognition of intra-comp any qualif ications

Standards for recognition of intra-company qualifications 1. The qualification testing shall be performed by the employer alone or in partnership with others for the benefit of the employees of the business or those related to it.

2. The qualification testing shall be directly relevant to the knowledge and skills demanded by the business.

3. Regulation shall be enacted and enforced which defines preferential treatment of employees with qualifications in terms of promotion, upgrading, or compensation.

4. No fee shall be collected from the employee, who intends to acquire the qualification, on the pretexts of costs relating to the qualification, such as for qualification testing.

5. Testing shall not be primarily for profit purposes.

6. The qualification should satisfy those conditions stipulated in the laws and regulations promulgated by the Ministry of Labor.

Currently six companies have received recognition under this provision for 14 qualifications. These qualifications are mainly limited to specialized technology areas to meet their business needs. The companies with recognition may receive support within specified limits in terms of development costs (wages, benefits, outsourcing fees incurred

(22)

for the development of the recognized intra-company qualification) and testing costs (wages, test development, scoring, supervisor fees, material expenses, and lease of equipment, all incurred for the implementation of the intra-company qualification). The support, however, does not extend to qualifications that were developed more than three years ago.

For the companies that have their own intra-company qualifications, these qualifications help to enhance productivity by developing the capacity of their workers. In addition, this system allows the employee's performance evaluation results to directly influence personnel administration policies. As a result, the company can continue to accumulate human capital and ultimately enhance its competitiveness. .

4. Future Prospects

In the 1960s and after, Korea has pursued a state-led economic growth.

In so doing the government sought to control the development and supply of industrial workforce by directly managing the qualification system. Hence the prominence of the national qualification system.

However, as development in technology and knowledge take place at a phenomenal pace, the national qualification system is showing its limitations in aptly adapting to the rapid changes and shifting demands of today's industries.

In response to the new environment, the Korean government enacted the Framework Act on Qualifications on March 27, 1997. This Act established a qualification system that allows flexible adaptation and, at the same time, enhances public credibility and facilitation of private qualifications. The Act also stimulated competition between and among national qualifications and private qualifications, promoting the improvement of the overall qualification system.

In general, qualifications help individuals to more easily enter into the j ob market by serving as proof of their work competency . At the same time, qualifications help companies to easily select qualified workforce.

To further empower this effort, it is necessary to concentrate on the following areas in order to maximize the function of qualifications and

(23)

to perpetuate Korea's qualification system.

First; private qualifications should be differentiated from national qualifications, each being further specialized. In other words, in an era where national and private qualifications coexist, the latter should focus on the niche that is left unoccupied by the former. This would help to clarify their roles and to make them complementary, rather than to push them further to exhaustive competition.

Secondly, on-the-site utility of national qualifications should be enhanced in order to quickly respond to needs in the workplace, for example, by introducing test subj ects and methods that reflect workplace needs and by expanding the possibility of participation of both employer and employee. In addition, delegation of part of the testing for NTQs to private institutions that have the necessary expertise should also be pursued where necessary .

Thirdly, certain procedures and standards should be prepared to maintain the quality of nationally accredited private qualifications.

Finally, evaluation and analysis of utilization and performance of each qualification should be made regularly in order to maximize its utility . For this purpose, a database related to qualification should also be established.

(24)

Author: Deok Gi Kim

Research Material 01-10