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Training levy-rebate incentive scheme and SME training consortium program to address unemployment and low productivity in SMEs : A Korean policy case

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  • Training levy-rebate incentive scheme and SME training consortium program to address unemployment and low productivity in SMEs
  • Lee, Kye Woo; Sahu, Dipan Kumar
  • Global Delivery Initiative; KDI School


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Title Training levy-rebate incentive scheme and SME training consortium program to address unemployment and low productivity in SMEs
Similar Titles
Sub Title

A Korean policy case

Material Type Reports
Author(English)

Lee, Kye Woo; Sahu, Dipan Kumar

Publisher

Global Delivery Initiative; KDI School

Date 2017-04
Series Title; No Global Delivery Initiative
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Industry and Technology < Entrepreneurship
Social Development < Employment
Holding Global Delivery Initiative
License

Abstract

This case study examines the origin, aims, execution, and achievement of the Small and Medium Enterprises (SMEs) Training Consortium Program in Korea. This Korean government program, which took place from 1990 to 2003, successfully addressed issues of low productivity and unemployment in the SME sector.

In the mid-1990s and in the aftermath of the 1998 Asian financial crisis, Korea’s enterprise sector was badly affected by high unemployment and low productivity of industrial workers. This caused a sharp deterioration in the quality of life of many workers, as well as generally low global competitiveness of Korean enterprises. Mass unemployment drew government attention to the issue of poverty and the importance of protecting and creating jobs by enhancing the skills and productivity of industrial workers.