College Within Company Will Be Encouraged
By Yoon Ja-young
Staff Reporter
Small businesses will be encouraged to set up colleges for employees, with those excelling in the service industries designated as masters of their discipline.
The Ministry of Strategy and Finance made the announcement Wednesday as it unveiled the third phase of the service industry development plan.
According to the plan, all businesses will be encouraged to set up colleges for employees. Currently, only the firms that have over 200 employees can set up a college, but small businesses with less than 200 employees will be allowed to establish one jointly, according to the plan.
The government also eased regulations on college departments set up at the request of businesses. These departments will be operated flexibly to fit the needs of companies, with more tax breaks also being made available.
The plan outlines measures that would see the creation of masters in service qualifications. At the moment, the government selects master craftsmen, who get government support, such as overseas training opportunities. The ministry plans to expand such incentives to the service sector.
The measure is based on the idea that the country should find a new growth engine in the service industry. The number of jobs in the manufacturing sector, the country's major pillar of economic growth, dropped to 4.12 million in 2007 from 4.82 million in 1995. Jobs in the service sector, meanwhile, surged to 15.63 million from 11.19 million.
However, the service industry in Korea has been falling far behind other developed countries in terms of competitiveness. Despite the shift, the government's focus on job training has remained firmly rooted in the manufacturing sector.
To attract young brains to service research institutions, the government plans to dangle the carrot of military service exemption. They will be allowed to work at the government-designated research institutions in the service sector, in areas such as consulting or finance, for around three years instead of fulfilling military service. Currently, those who work at science and engineering research institutions enjoy the exemption.
Polytechnic schools dedicated to vocational training will also include service education options, including in the fields of design and healthcare.