A feature of Korea's industrialization has been dependence on its highly industrious and disciplined work force and intensive training programs. The Fourth Five-Year Plan (FFYP) foresees the need for further extension of these training programs to supply skilled workers and technicians. However, the structural changes and diversification of industry will add at least two dimensions to the labor market demands: continuous adjustment in the composition of required skills at all levels of technical manpower, and, an increased demand for high level manpower (technicians, engineers, scientists and researchers). This subsector memorandum focuses on engineering education (technician level and professional), management education and related university research. It proposes a strategy for Bank assistance to this subsector and possible componets for a fith education project in Korea. The paper specifically discusses: development strategy, technology and manpower requirements for industrial development, higher technical training, and, government plans and a bank stretegy for higher technical training.