The localized Work-Based Learning system in Korea was derived from that of Germany and Switzerland. Some have voiced concerns that, as its goal is heavily biased toward quantitative expansion, this may lead to low-quality training. In this sense, this report evaluates the effectiveness of the system, including its employment effect, through linking the raw data of the system to the database of employment insurance and the panel data of business participants.

 In the planning phase (adequacy evaluation), government policy changes aimed to achieve quantitative targets (inviting 10,000 corporations to the program by 2017) will face some negative consequences: degradation of training quality due to a growing number of business participants with low credit ratings; inefficient allocation of the budget resulting from the increasing participation of laborers with six months to two years on the job rather than the newly hired; and insufficient training due to the reduction in the minimum training period by six months. In the implementation phase (efficiency evaluation), drop-out rates have reached 31.6%, higher than those of other similar programs. This might be attributable to the reality where a budget has been provided for those not willing to participate in the program or in no need of the support during the excessive growth of the program size to meet its quantitative goals. The related budget amount is estimated to be KRW 11 billion. In the performance phase (effectiveness evaluation), retention rates six months after the termination of training are a mere 70.7%, lower than the 74.4% of youth internship programs in SMEs. Moreover, the review of those who are ineligible for employment insurance after the end of training shows that nearly half of them (48.3%) are still out of jobs, and among those who have newly landed a job, 34.8% have moved upward while 65.2% have moved downward, implying that training completion has a limited effect on labor mobility.

 As an improvement measure, performance indices need to be set based on effectiveness, such as shortening job seeking periods, reducing the average age of landing a job, or resolving mismatches between employers and job seekers, instead of quantitative goals like the number of business participants. In addition, while the Work-Based Learning system is a high-cost training program, its target groups are not clearly defined, posing the possibility of inefficient budget management. Therefore, the program needs to target high-schoolers or those with high school diplomas who promise a high return on investment and suit the policy goals. Lastly, in order for the scheme to lay the ground to build a merit-based society, the Bill on Work-based Learning Support in Industrial Fields needs to be passed as soon as possible to allay the concerns of program participants on its sustainability, and more efforts should be focused on creating social conditions where NCS-based qualifications are widely accepted.