Introducing German vocational education

Barbara Zollmann

This is the fourth in a series of experts' letters to President Moon Jae-in on various economic topics. ― ED.

By Barbara Zollmann

Heartfelt congratulations to President Moon Jae-in from the Korean-German Chamber of Commerce and Industry (KGCCI).

Just a few weeks into his presidency, President Moon has already brought back pride and happiness to the Korean people which they deserve so well after going through this difficult transition period. Now it is time again for a strong Korean government which will lead Korea successfully and transparently through the challenges of the future and which will play a confident and proactive role among the global leaders.

The new government has many important topics on its to-do list.

One priority at the moment is job creation and the Fourth Industrial Revolution. A job creation committee has been launched and a Fourth Industrial Revolution committee will soon be launched as well.

We, KGCCI and its 500 members, are ready to be a part of Korea’s efforts in this regard.

Under the slogan of “Partnership Germany” we would like to continue and strengthen business and other long term relationships with Korea.

Since 1981, KGCCI has been a reliable, long term partner for Korea, in good times and difficult times. It was a successful and mutually beneficial relationship and we hope that we can continue it under the new Administration. We are very much encouraged by President Moon naming a special envoy to Germany and Europe for the first time, Cho Yoon-je, who just met with Chancellor Merkel and other representatives in Germany.

There are many issues of common interest between Germany and Korea: unification, education, investment, trade and SME development.

In the area of business, we would like to strengthen the partnership reflecting the new administration’s policies, which are fully in line with KGCCI’s policy direction; vocational education, or as we Germans call it, Ausbildung.

We would like to introduce and expand the German type of dual education to help increase employment in Korea and eliminate the mismatch between employers’ requirements and job seekers’ qualification.

KGCCI has already launched a first three-year vocational training program for the automotive industry; Fourth Industrial Revolution: to support Korea’s preparedness toward the Fourth Industrial Revolution and increase the partnership between the two countries.

Partnership is pivotal for success in this area, as no one country alone can face the new paradigm and no one company alone can do it either.

We would like to introduce and share German experience in supporting SMEs and help them to be more successful in global markets. One means to do this is KGCCI’s Innovation Awards to promote Korean technology companies to nurture partnership with German companies and to go global.

In order to be successful in cooperating it also needs a common understanding that German companies are here in Korea with a long-time perspective and with the intention not only to increase shareholder profit but to contribute to the Korean society.

Under the previous government, Korea has developed the reputation of inviting foreign investors to Korea, to create jobs in Korea and to enhance investment statistics. However, once foreign companies became too successful in Korea, they faced scrutiny and retaliation in a very subtle manner.

Continuous audits and investigations, penalizing and criminalizing foreign investors for minor administrative errors, sometimes based on unclear legislation, or the many Korea-only regulations deviating from global standards, might be legal but this is no way to treat friends and companies who you want to invest more in Korea.

We hope that under President Moon’s government a new understanding will develop so that the success of foreign companies in Korea does not automatically lead to the demise of Korean companies but that both can thrive by partnering and putting their strengths together.

Nationalism and protectionism, like we see it developing in other countries, never leads to a stronger position in global competition. Therefore, we hope for fair treatment between Korean and German companies, including keeping international standards for patent protection.

Then there is also unfinished business from the previous government, such as labor market reform, to achieve a balance between the fair workforce conditions and flexibility in a highly competitive and digital world.

More flexibility in the labor market will also eliminate the need of companies to circumvent strict labor laws and rely on irregular workers instead.

It will also lead to creating new jobs. President Moon aims at creating 810,000 new jobs in the public sector but from a business perspective, we would rather see 810,000 new jobs created in the private sector.

Further support of Startup companies and SMEs is another way to support job creation in the private sector.

There are many things to do. Let us do them together!

The writer is the president of the Korean-German Chamber of Commerce and Industry.