South Korea’s Educational Fever: Building a Skilled Workforce

South Korea’s journey from a $79 GDP per capita in 1960 to $20,579 by 2010 is a story of human capital triumph. Central to this was its “educational fever” and massive investment in education and R&D, which built a skilled workforce for high-tech industries. As a Master’s student exploring development economics, I’m inspired by Korea’s approach, as outlined in Sung-Hoon Jung’s The Korean Development Strategy (2011). For Nepal, where education quality lags, Korea’s model offers a roadmap. This post examines Korea’s educational strategy and how Nepal can reform its education system for growth.

Education as Korea’s Engine

Korea’s developmental state prioritized human capital to transition from labor-intensive to knowledge-based industries (Jung, 2011, p. 464):

• 1960–1979: Investments in primary and secondary education created a literate workforce for textiles and heavy industries like steel (p. 460).

• 1980–1997: Technical training and university expansion supported high-tech sectors like semiconductors, with Samsung leading the charge (p. 462).

• 1998–2010: R&D expenditure reached 3.6% of GDP by 2009, and institutions like Daedeok Science Park drove innovation in IT and biotechnology (p. 454).

This “educational fever” fostered a culture of academic excellence, enabling Korea to compete globally.

Key Strategies

1. Mass Education: Korea achieved near-universal literacy by the 1970s, providing a foundation for industrial growth (p. 464).

2. Vocational Training: Programs targeted skills for specific industries, such as shipbuilding in the 1970s and IT in the 1990s (p. 462).

3. R&D Investment: National R&D programs and tax incentives for private sector innovation fueled technological advancements (p. 463).

Lessons for Nepal

Nepal’s literacy rate is 71% (UNESCO, 2021), but quality issues and a skills mismatch hinder development. With a young population (40% under 25), Nepal can learn from Korea:

• Expand STEM Education: Prioritizing science, technology, engineering, and math could prepare workers for hydropower and IT industries.

• Vocational Training: Programs for tourism (e.g., hospitality) and agro-processing could address unemployment, similar to Korea’s industry-specific training.

• Innovation Hubs: A Nepali equivalent of Daedeok Science Park could foster research in renewable energy or sustainable agriculture.

Challenges: Nepal’s low education spending (~4% of GDP) and brain drain require increased funding and incentives to retain talent, unlike Korea’s sustained investments.

Moving Forward

Nepal could aim to increase education spending to 6% of GDP by 2030, focusing on technical institutes and partnerships with donors like the World Bank. Anti-brain-drain policies, such as job guarantees for graduates, could keep talent in Nepal. Community-based education programs can ensure rural access, avoiding Korea’s urban bias (p. 464).

Check out our series:

• How South Korea Became an Economic Powerhouse for context.

• The Role of Chaebols in Korea’s Miracle for private sector insights.

• Transforming Nepal’s Education System for Nepal-specific reforms.

• From Poverty to Powerhouse: Lessons for Nepal for the original post.

How can Nepal improve its education system? Share your thoughts in the comments!

References:

• Jung, S.-H. (2011). The Korean Development Strategy. Journal of the Economic Geographical Society of Korea, 14(4), 453–466.

• UNESCO. (2021). Nepal Education Statistics.

• World Bank. (2023). Nepal Development Report.