In such a setting then, the vocational training system was extended to promote lifelong training for the employees, and this took the form of the Vocational Competency Development Program.
Despite the advances made, much still remains to be done, as South Korea is among the countries with the lowest investments in worker education. According to a study of the Organization for Economic Cooperation and Development (OECD), South Korea invested 0.05 per cent of its gross domestic product in employee training; Germany for instance invested 0.37 per cent and Austria invested 0.40 per cent (Lee and Jeon, 2009).
Aside from the increasing education of the labor force, the economic development of South Korea can also be linked to increases in the organizational and state investments in research and development. Throughout the past recent decade, the investments in research and development in the country have increased at a sustained rate, in a gradual and consistent manner. The chart below reveals this evolution as percentage in the gross domestic product:
Source: Trading Economics, 2012
As a result of this gradual increase in R&D spending, South Korea became one of the leading countries in terms of investments in research and development. In 2011 for instance, South Korea was the third largest nation by percentage of GDP invested in R&D, being only surpassed by Israel and Sweden. The chart below reveals the top ten countries by size of R&D investments:
Source: The Economist, 2011
At the particular level of the structure of the investments, it is noted that the majority of the R&D investments, approximately 75 per cent, are completed by the private sector, including both domestic economic agents, as well as foreign investors. The R&D investments of the South Korean state only account for approximately 25 per cent of all investments, and are generically divided between the R&D efforts of universities and the R&D efforts of public institutions; universities revealed a slightly higher rate of investments in research and development (University World News, 2009).
While at the level of percentage in the GDP, the R&D investments in South Korea are global leaders, in terms of the actual amounts, these are considerably decreased in comparison to the investments of other states. South Korea's investments in 2010 for instance totaled up to $37.93 billion, whereas the investments of the United States of America totaled nearly $400 billion; France, China and Germany also outperformed South Korea's R&D investments (Yonhap News Agency, 2011).
All in all, the combination of increasing investments in research and development on the one hand, and increased worker education on the other hand, has supported the transformation of South Korea from a centrally planned economy into a market driven economy, in which knowledge workers drive growth and development. Still, the full transition to a knowledge-based economy has yet to be completed and some challenges which remain to be addressed include the decreased participation of the services sector to the generation of the gross domestic product, an underdeveloped financial sector or decreased competitiveness of the South Korean business sectors (MacDonald, 2006).
3. Conclusions
South Korea has traditionally been an enclosed economy, but is now focusing on becoming a free market. The past recent decades have witnessed tremendous evolutions and combinations of forces, which have led to the creation of economic developments.
At the current level, the economic development takes the form of the knowledge economy, which is becoming preponderant within the modern day global society. South Korea is attaining its knowledge economy objectives through various elements, two important ones being the education of its workforce, as well as the increase in the amounts of research and development funding.
The table below reveals the structured representation of the big fish model in South Korea.
Feature of big push model
Application in South Korea
1.
Combination of two elements
- Worker education
- Investments in research and development
2.
Results of the two elements combined / Big push
Economic growth in South Korea / Transition to the knowledge economy
3.
Free market
- More emphasis on international trade / imports
- Policies to free the market and globally integrate the country
4.
State intervention to coordinate investments
The policies of President Park Chung Hee
5.
Increase in R&D investments
Sustained increase
3rd largest country in the world, by R&D investments as percentage of GDP
By amount, the values...
Loosening Up From their traditional tight spending habits, Japanese consumers are learning from past lessons and letting loose and letting go on expenses (Gordon 2006). This phenomenal change of behavior is deemed to benefit not only their deflation-ravished economy. It will also be a relief to the country's neighbors and trading partners. Japan keeps its rank as the second largest world economy. It remains a record-holder with a 5.5% annual rate
1950's Korean War, North Korea (Democratic People's Republic Korea) and South Korea (Republic Korea) Were Exploited by the Superpowers for Their Own Agendas The closing decade of the 20th century witnessed the end of the Cold War as the Soviet Union collapsed and its former Warsaw Pact allies flocked to join their former enemies in the North Atlantic Treaty Organization. The end of the Cold War also resulted in the
Therefore, the account of threats to Samsung rendered above yield several important recommendations. Particularly, in spite of the many valid reasons for its relative freedom over the course of Samsung's history, the time has come for the firm to more toward greater transparency and a better adherence to international expectations of structural normalcy. Samsung's new leaders must make as a priority at this juncture the simplification of the company's
Marketing International Conference Seoul- an Emerging Destination for International Convention Industry International conferences are emerging as a major global industry over past few years. Despite its growing size, it has been largely ignored in terms of academic research. Where western part of the world has been locus of conference industry with major locations in U.S. And UK, Asian cities are now emerging as better options for conducting international conference. Furthermore, international conference
Economic Development of China and Korea China and Korea, not exactly highly developed countries, but carry a mystique about them that intrigues everyone in the United States. Two countries, on the verge of emerging into their full economic potential, is at the present time, attracting plenty of media attention. Was their economic bankruptcy influenced by the attack on America? The purpose of this essay is to discuss and compare the differences
President Harry S. Truman found himself entrenched in a major dilemma as the Korean War unfolded. The consensus among most political leaders in the United States was that the Soviet Union was intending to export communism to the rest of the world. This consensus formed the basis of the American foreign policy with the goal being to contain communism at home and abroad. In Europe, this policy was characterized by
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now