Public educational expenditures in many LDCs are generally biased towards the formalized vocational sub-sectors. Taking South Korea as an example, vocational education within the traditional school system is allocated a much bigger share of public resources than the non-formal system. There is however, growing realization that the private industrial sector should bear more of the training responsibility since firms would be best able to train efficiently for their own skill needs. To examine the argument that in-plant training by private industry merits greater emphasis, a survey of different training modes in South Korea was carried out. Results from a rate-of-return analysis using survey data indicate that social returns are highest for in-plant training followed by vocational institute training and lowest for technical high school training. Additionally, the analysis points out several important weaknesses in the Korean technical education system. The findings of this survey raise further policy issues pertaining to technical training that are common to many LDCs. These issues revolve around the question of how limited funds could be efficiently deployed to produce the right kinds and amounts of skilled labor.