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Korea’s Knowledge Economy: Education in the Information Age James F. Larson, Ph.D. Deputy Director Fulbright Commission, Seoul Spring 2008 Presentation Overview • The Knowledge Economy framework in Historical Context. • Key features of South Korea’s education sector. • Aspects and indicators of Korea’s evolving information society. • How Fulbright Korea can help you. Knowledge Economy Framework Provides incentives for the efficient creation, dissemination, and use of existing knowledge Economic and Institutional Regime Knowledge Economy Framework Provides incentives for the efficient creation, dissemination, and use of existing knowledge Economic and Institutional Regime Necessary for the creation and effective use of knowledge Education Knowledge Economy Framework Provides incentives for the efficient creation, dissemination, and use of existing knowledge Economic and Institutional Regime Necessary for the creation and effective use of knowledge Education system Innovation ofEffective firms, research centers, universities that can tap into global knowledge, assimilate and adapt it and create local knowledge Knowledge Economy Framework Provides incentives for the efficient creation, dissemination, and use of existing knowledge Economic and Institutional Regime To facilitate the effective communication, dissemination, and processing of information Information Infrastructure Necessary for the creation and effective use of knowledge Education system Innovation ofEffective firms, research centers, universities that can tap into global knowledge, assimilate and adapt it and create local knowledge Knowledge Economy Framework Provides incentives for the efficient creation, dissemination, and use of existing knowledge Economic and Institutional Regime To facilitate the effective communication, dissemination, and processing of information Information Infrastructure Necessary for the creation and effective use of knowledge Education system Innovation ofEffective firms, research centers, universities that can tap into global knowledge, assimilate and adapt it and create local knowledge Knowledge & Economic Growth Knowledge Makes the Difference South Korea 12,000 Real GDP per capita (2000 US$) 10,000 Difference in output due to TFP growth or knowledge accumulation in Korea 8,000 6,000 Mexico 4,000 Difference in output due to growth in labor and capital in Korea 2,000 0 1960 1965 1970 1975 1980 1985 1990 1995 2000 Korea’s Education Sector • Specialized and private high schools. Specialized High Schools • A high school with an animation department http://www.bchs.hs.kr/ • Korea Game Science High School http://www.game.hs.kr/ • Daewon Foreign Language High School http://daewon.seoul.kr/dflhs/dflhs_eng/da efh_mseng01.asp Korea’s Education Sector • Specialized and private high schools. • Korea has the world’s highest rate of H.S. graduates going on to higher education Advancement/Employment Rate for High School Graduates Advancement/Employment Rate for University Graduates Korea’s Education Sector • Specialized and private high schools. • 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. Academic Level of Korean Students in the U.S. (2006/7 Open Doors) • 45.2% • 38.4% • 7.2% • 9.2% undergraduate graduate students other OPT (Optional Practical Training) Korean Students in U.S. by Level 60.0 50.0 percent 40.0 47.2 41.1 48.3 47.8 47.2 42.3 43.3 45.2 43.9 45.7 45.2 41.4 40.3 38.4 %UG 30.0 % Grad 20.0 10.0 0.0 2000 2001 2002 2003 year 2004 2005 2006 Open Doors Data-Intensive English Rank 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 Deficit • 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. Korea’s Education Sector • Specialized and private high schools. • 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. • It invests more private funds in education than other countries. Private institutes are a major political issue. Korea’s Services Deficit More Americans Coming to Korea Korea’s Education Sector • Specialized and private high schools. • 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. • It invests more private funds in education than other countries. Private institutes are a major political issue. Private Versus Public Expenditure Private Education is Big Business in Korea • 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. Private Institutes in Korea • 77 percent of Korean students are getting private education • Averaging 7.8 hours per week • 222,000 won per child • 20.4 trillion won expenditure last year Investment in English Education • 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. Source: Samsung Research Institute Korea’s Education Sector • Specialized and private high schools. • 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. 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 Promised Reforms • 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. President-elect Lee Myung Bak’s Promised Reforms • Reducing the role of private education and strengthening the public education system. • Education Ministry has become the Ministry of Education, Science and Technology Highlights of the New Government’s English-Friendly Plan • Gov’t to invest $4.2 billion over the next five • • • • • • years To introduce Teaching English in English To outsource 23,000 teachers Reduce English class size from 35 to 23 Offer immersion and other training to English teachers Utilize housewives and overseas Koreans Introduce an English proficiency test to replace current tests Government Plan is Controversial LG Electronics Adopts English 2. Korea’s Information Revolution • Broadband Internet and household communications expenditures • Exports of telecoms equipment • Digital Opportunity Index • Korea’s Ubiquitous Networked Society plan • Limits placed by language • Korea’s Digital Divide Is this service or is this service? Broadband penetration, historic, top five OECD countries for Dec. 2006 Denmark 35 Netherlands 30 Switzerland 25 20 Iceland 15 Korea 10 5 0 2001 2002-Q2 Source : OECD 2002 2003-Q2 2003 2004-Q2 2004 2005-Q2 2005 2006-Q2 2006 OECD broadband penetration and GDP per capita Broadband penetration, Dec. 2006 GDP per capita, 2005 90,000 35 Broadband penetration (subscribers per 100 inhabitants, Dec. 2006) 80,000 GDP per capita (USD PPP, 2005) 70,000 Simple correlation = 0.649 60,000 30 25 20 50,000 15 40,000 30,000 10 20,000 5 N D e et nm he a r rl a k n Ic ds el an Sw Ko d i tz re er a la N nd or w a Fi y nl Sw and ed C en an a U ni Be da te l d giu K Lu i ng m x e do m m bo u Fr r g an ce U ni J a te pa d S n Au tate st s ra Au li a G s tri er a m an Sp y ai N n ew I t Ze al al y a Po nd rtu g Ire a l la C ze Hu n d ch ng R ary ep u Sl ov P bli c a k ol R and ep u G b lic re e Tu ce rk M ey ex ic o 0 Source : OECD 10,000 0 Household Internet Access-OECD Weekly Internet Access Hours Household Investments in OECD Countries Relative Communication Expenditures by OECD Countries Korea’s Exports of Telecommunications Equipment • A key measure of the information society. • Telecommunications Equipment Includes, Among Others – – – – – Various kinds of phone handsets Fax machines, printers Telephone switching devices Broadcasting apparatus In general—components of modern networks 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). • The same year it ranked 17th in telecoms equipment imports with about $3 billion. Samsung and LG TVs and Displays 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 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. The u-Korea Master Plan • to establish developmental strategy in coping with the future informatization paradigm shift to the ubiquitous society • To facilitate IT growth – Next generation mobile communication – Digital TV broadcasting – Displays – Next generation semiconductor The u-Korea Master Plan – Digital content – Intelligent robots – Intelligent home networks – Software solutions (built-in software) – Next generation battery – Next generation PCs http://www.ubiquitousdream.or.kr/ Songdo U-City www.songdo.com 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 • Recent approval of .kp domain name for North Korea • Two parts of communication disparity: infrastructure and news/information flow. Language as a Limiting Factor • 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. • Web usage in Korea only started to increase when the number of .kr domains dramatically increased, indicating Koreanlanguage content. Growth of .kr domains The Fulbright Commission in Seoul, Korea • Founded by the U.S. and Korea just before the • • Korean War broke out. One of the largest Fulbright Commissions worldwide. 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 Services for U.S. Educational Institutions • Our U.S. Education Center works with all major U.S. study fairs in Korea. Services for U.S. Educational Institutions • 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. Services for U.S. Schools • 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 work closely with the Korea Overseas Study Association (KOSA) Services for U.S. Schools • We’re launching an English-language blog for U.S. schools and educational organizations 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