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

Korea’s Knowledge Economy: Korea’s Knowledge Economy: Education in the Information Education in the Information

Age Age

James F. Larson, Ph.D.James F. Larson, Ph.D.Deputy DirectorDeputy Director

Fulbright Commission, SeoulFulbright Commission, SeoulSpring 2008Spring 2008

Presentation OverviewPresentation Overview

• The Knowledge Economy framework The Knowledge Economy framework in Historical Context.in Historical Context.

• Key features of South Korea’s Key features of South Korea’s education sector.education sector.

• Aspects and indicators of Korea’s Aspects and indicators of Korea’s evolving information society.evolving information society.

• How Fulbright Korea can help you.How Fulbright Korea can help you.

Economic and Institutional

Regime

Provides incentives for the efficient creation, dissemination, and use of existing knowledge

Knowledge Economy Framework

EducationEconomic 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

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

Education

InnovationInformation 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

Education

InnovationInformation Infrastructure

Interconnected

Interdependent

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

Knowledge & Economic GrowthKnowledge & Economic GrowthKnowledge Makes the Difference

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Difference in output due to growth in labor and capital in Korea

Difference in output due to TFP growth or knowledge accumulation in Korea

Korea’s Education SectorKorea’s Education Sector

• Specialized and private high schools.Specialized and private high schools.

Specialized High SchoolsSpecialized High Schools

• A high school with an animation A high school with an animation department department http://www.bchs.hs.kr/http://www.bchs.hs.kr/

• Korea Game Science High School Korea Game Science High School http://www.game.hs.kr/http://www.game.hs.kr/

• Daewon Foreign Language High Daewon Foreign Language High School School http://daewon.seoul.kr/dflhs/dflhs_enhttp://daewon.seoul.kr/dflhs/dflhs_eng/daefh_mseng01.aspg/daefh_mseng01.asp

Korea’s Education SectorKorea’s Education Sector

• Specialized and private high schools.Specialized and private high schools.

• Korea has the world’s highest rate of Korea has the world’s highest rate of H.S. graduates going on to higher H.S. graduates going on to higher educationeducation

Advancement/Employment Advancement/Employment Rate for High School GraduatesRate for High School Graduates

Advancement/Employment Advancement/Employment Rate for University GraduatesRate for University Graduates

Korea’s Education SectorKorea’s Education Sector

• Specialized and private high schools.Specialized and private high schools.

• Korea has the world’s highest rate of Korea has the world’s highest rate of H.S. graduates going on to higher H.S. graduates going on to higher educationeducation

• Korea is the number one source of Korea is the number one source of international students in the United international students in the United States.States.

Academic Level of Korean Academic Level of Korean Students in the U.S. (2006/7 Students in the U.S. (2006/7 Open Doors)Open Doors)• 45.2%45.2% undergraduateundergraduate

• 38.4%38.4% graduate studentsgraduate students

• 7.2% 7.2% otherother

• 9.2%9.2% OPT (Optional Practical OPT (Optional Practical Training)Training)

Korean Students in U.S. by Level

41.1 40.342.3 43.3 43.9

45.7 45.247.2 48.3 47.8 47.2

45.2

41.4

38.4

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2000 2001 2002 2003 2004 2005 2006year

perc

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% Grad

Open Doors Data-Intensive Open Doors Data-Intensive EnglishEnglishRank Place of Origin

Students

S-Weeks

WORLD TOTAL 45,167 636,522

1 Korea, Rep. of (South) 10,026 141,336

2 Japan 7,453 94,649

3 Saudi Arabia 5,047 126,996

4 Taiwan 4,748 68,868

5 Brazil 1,572 14,351

6 China 1,461 18,686

7 France 1,008 7,688

8 Thailand 975 13,105

The Education DeficitThe Education Deficit

• Refers to the growing number of Refers to the growing number of students going overseas for students going overseas for education, especially at the education, especially at the secondary level and earlier.secondary level and earlier.

• Large recent growth in secondary Large recent growth in secondary level students going abroad.level students going abroad.

Korea’s Education SectorKorea’s Education Sector

• Specialized and private high schools.Specialized and private high schools.• Korea has the world’s highest rate of H.S. Korea has the world’s highest rate of H.S.

graduates going on to higher educationgraduates going on to higher education• Korea is the number one source of Korea is the number one source of

international students in the United international students in the United States.States.

• It invests more private funds in education It invests more private funds in education than other countries. Private institutes are than other countries. Private institutes are a major political issue.a major political issue.

Korea’s Services DeficitKorea’s Services Deficit

More Americans Coming to More Americans Coming to KoreaKorea

Korea’s Education SectorKorea’s Education Sector

• Specialized and private high schools.Specialized and private high schools.• Korea has the world’s highest rate of H.S. Korea has the world’s highest rate of H.S.

graduates going on to higher educationgraduates going on to higher education• Korea is the number one source of Korea is the number one source of

international students in the United international students in the United States.States.

• It invests more private funds in education It invests more private funds in education than other countries. Private institutes are than other countries. Private institutes are a major political issue.a major political issue.

Private Versus Public Private Versus Public ExpenditureExpenditure

Private Education is Big Private Education is Big Business in KoreaBusiness in Korea

• The industry is estimated to be worth The industry is estimated to be worth 20-30 trillion won ($21 billion to $32 20-30 trillion won ($21 billion to $32 billion).billion).

• Samsung Securities estimated the Samsung Securities estimated the market would reach 28.6 trillion won market would reach 28.6 trillion won this year.this year.

Private Institutes in KoreaPrivate Institutes in Korea

• 77 percent of Korean students are 77 percent of Korean students are getting private educationgetting private education

• Averaging 7.8 hours per weekAveraging 7.8 hours per week

• 222,000 won per child222,000 won per child

• 20.4 trillion won expenditure last 20.4 trillion won expenditure last yearyear

Investment in English Investment in English EducationEducation• Koreans spend an estimated $16 billion Koreans spend an estimated $16 billion

per year on private institutes and per year on private institutes and tutoring.tutoring.

• This estimate includes English lessons at This estimate includes English lessons at the kindergarten level and expenses for the kindergarten level and expenses for those families who go overseas for study.those families who go overseas for study.

Source: Samsung Research InstituteSource: Samsung Research Institute

Korea’s Education SectorKorea’s Education Sector

• Specialized and private high schools.Specialized and private high schools.• Korea has the world’s highest rate of H.S. Korea has the world’s highest rate of H.S.

graduates going on to higher educationgraduates going on to higher education• Korea is the number one source of Korea is the number one source of

international students in the United States.international students in the United States.• It invests more private funds in education It invests more private funds in education

than other countries. Private institutes and than other countries. Private institutes and the “education deficit” are major political the “education deficit” are major political issues.issues.

• President-elect Lee Myung Bak’s government President-elect Lee Myung Bak’s government pledges major educational reforms.pledges major educational reforms.

President-elect Lee Myung President-elect Lee Myung Bak’s Promised ReformsBak’s Promised Reforms

• Doing away with the former “three nos” Doing away with the former “three nos” policy which prevented policy which prevented universities fromuniversities from– administering administering their own entrance their own entrance examsexams– ranking high schools and ranking high schools and – accepting accepting donations donations for admitting students.for admitting students.

• Giving universities full autonomy in the Giving universities full autonomy in the selection of students.selection of students.

President-elect Lee Myung President-elect Lee Myung Bak’s Promised ReformsBak’s Promised Reforms

• Reducing the role of private Reducing the role of private education and strengthening the education and strengthening the public education system.public education system.

• Education Ministry has become the Education Ministry has become the Ministry of Education, Science and Ministry of Education, Science and TechnologyTechnology

Highlights of the New Highlights of the New Government’s English-Friendly Government’s English-Friendly Plan Plan • Gov’t to invest $4.2 billion over the next Gov’t to invest $4.2 billion over the next

five yearsfive years• To introduce Teaching English in EnglishTo introduce Teaching English in English• To outsource 23,000 teachersTo outsource 23,000 teachers• Reduce English class size from 35 to 23Reduce English class size from 35 to 23• Offer immersion and other training to Offer immersion and other training to

English teachersEnglish teachers• Utilize housewives and overseas KoreansUtilize housewives and overseas Koreans• Introduce an English proficiency test to Introduce an English proficiency test to

replace current testsreplace current tests

Government Plan is Government Plan is ControversialControversial

LG Electronics Adopts LG Electronics Adopts EnglishEnglish

2. Korea’s Information 2. Korea’s Information RevolutionRevolution

• Broadband Internet and household Broadband Internet and household communications expenditurescommunications expenditures

• Exports of telecoms equipmentExports of telecoms equipment

• Digital Opportunity IndexDigital Opportunity Index

• Korea’s Ubiquitous Networked Society Korea’s Ubiquitous Networked Society planplan

• Limits placed by languageLimits placed by language

• Korea’s Digital DivideKorea’s Digital Divide

Is this service or is this Is this service or is this service?service?

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Switzerland

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Korea

Broadband penetration, historic, top five OECD countries for Dec. 2006

Source : OECD

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Broadband penetration (subscribers per 100 inhabitants, Dec. 2006)

GDP per capita (USD PPP, 2005)

Simple correlation = 0.649

Broadband penetration, Dec. 2006 GDP per capita, 2005

OECD broadband penetration and GDP per capita

Source : OECD

Household Internet Access-Household Internet Access-OECDOECD

Weekly Internet Access Weekly Internet Access HoursHours

Household Investments in Household Investments in OECD CountriesOECD Countries

Relative Communication Relative Communication Expenditures by OECD Expenditures by OECD CountriesCountries

Korea’s Exports of Korea’s Exports of Telecommunications Telecommunications EquipmentEquipment• A key measure of the information society.A key measure of the information society.

• Telecommunications Equipment Includes, Telecommunications Equipment Includes, Among OthersAmong Others– Various kinds of phone handsetsVarious kinds of phone handsets– Fax machines, printersFax machines, printers– Telephone switching devicesTelephone switching devices– Broadcasting apparatusBroadcasting apparatus– In general—components of modern networksIn general—components of modern networks

Korea’s Exports of Korea’s Exports of Telecommunication EquipmentTelecommunication Equipment

• In 2005 Korea ranked third among In 2005 Korea ranked third among OECD countries, after the UK and OECD countries, after the UK and Germany and ahead of the U.S. with Germany and ahead of the U.S. with over $20 billion in exports (OECD over $20 billion in exports (OECD Communications Outlook 2007).Communications Outlook 2007).

• The same year it ranked 17The same year it ranked 17thth in in telecoms equipment imports with telecoms equipment imports with about $3 billion.about $3 billion.

Samsung and LG TVs and Samsung and LG TVs and DisplaysDisplays

Indicators of the Information Indicators of the Information Age in KoreaAge 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

Indicators of the Information Indicators of the Information Age in KoreaAge 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.

The u-Korea Master PlanThe u-Korea Master Plan

• to establish developmental strategy in to establish developmental strategy in coping coping withwith the future informatization the future informatization paradigm paradigm shift to the ubiquitous societyshift to the ubiquitous society

• To facilitate IT growthTo facilitate IT growth– Next generation mobile communicationNext generation mobile communication– Digital TV broadcastingDigital TV broadcasting– DisplaysDisplays– Next generation semiconductorNext generation semiconductor

The u-Korea Master PlanThe u-Korea Master Plan

– Digital contentDigital content– Intelligent robotsIntelligent robots– Intelligent home networksIntelligent home networks– Software solutions (built-in software)Software solutions (built-in software)– Next generation batteryNext generation battery– Next generation PCsNext generation PCs

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

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

Korea’s Digital Divide: Korea’s Digital Divide: Communications and National Communications and National ReunificationReunification• The problem with “indicators” of the The problem with “indicators” of the

information age is that they apply to information age is that they apply to only half of the Korean peninsulaonly half of the Korean peninsula

• Recent approval of .kp domain name Recent approval of .kp domain name for North Koreafor North Korea

• Two parts of communication Two parts of communication disparity: infrastructure and disparity: infrastructure and news/information flow.news/information flow.

Language as a Limiting Language as a Limiting FactorFactor• People, including Koreans, prefer to People, including Koreans, prefer to

surf the web in their own language.surf the web in their own language.• In Korea, almost everyone uses In Korea, almost everyone uses

Naver to search, for one reason. It is Naver to search, for one reason. It is all in Korean.all in Korean.

• Web usage in Korea only started to Web usage in Korea only started to increase when the number of .kr increase when the number of .kr domains dramatically increased, domains dramatically increased, indicating Korean-language content.indicating Korean-language content.

Growth of .kr domainsGrowth of .kr domains

The Fulbright Commission in The Fulbright Commission in Seoul, KoreaSeoul, Korea

• Founded by the U.S. and Korea just before Founded by the U.S. and Korea just before the Korean War broke out.the Korean War broke out.

• One of the largest Fulbright Commissions One of the largest Fulbright Commissions worldwide.worldwide.

• Three major areas of activity:Three major areas of activity:– Fulbright grants and some other smaller grant Fulbright grants and some other smaller grant

programs.programs.– U.S. Education Center –a State Department U.S. Education Center –a State Department

Affiliated Advising CenterAffiliated Advising Center– Academic Testing Academic Testing

Services for U.S. Educational Services for U.S. Educational InstitutionsInstitutions

• Our U.S. Education Center works with Our U.S. Education Center works with all major U.S. study fairs in Korea. all major U.S. study fairs in Korea.

Services for U.S. Educational Services for U.S. Educational InstitutionsInstitutions

• Our U.S. Education Center works with Our U.S. Education Center works with all major U.S. study fairs in Korea. all major U.S. study fairs in Korea.

• We provide an array of web and We provide an array of web and event services to help U.S. schools event services to help U.S. schools promote themselves to prospective promote themselves to prospective Korean students.Korean students.

Services for U.S. SchoolsServices for U.S. Schools

• Our U.S. Education Center works with Our U.S. Education Center works with all major U.S. study fairs in Korea. all major U.S. study fairs in Korea.

• We provide an array of web and We provide an array of web and event services to help U.S. schools event services to help U.S. schools promote themselves to prospective promote themselves to prospective Korean students.Korean students.

• We work closely with the Korea We work closely with the Korea Overseas Study Association (KOSA)Overseas Study Association (KOSA)

Services for U.S. SchoolsServices for U.S. Schools

• We’re launching an English-language We’re launching an English-language blog for U.S. schools and educational blog for U.S. schools and educational organizations organizations http://fulbrightkorea.wordpress.com/http://fulbrightkorea.wordpress.com/

• A description of our services and A description of our services and prices can be found at prices can be found at http://www.educationusa.or.kr/en/usehttp://www.educationusa.or.kr/en/usec/services.php#02c/services.php#02