This article discusses the current exclusion of university students from the Industrial Skilled Worker program, which has contributed to the growth of the IT industry, analyzes the negative impacts and problems on small and medium-sized enterprises and the IT industry, and argues for the need to re-include university students.
Industrial Skilled Workers in IT to include university students
On September 16, 2023, a policy debate was held at the National Assembly on the topic of ‘Is it reasonable to exclude university students from the ICT industry? The debate, hosted by Representatives Kim Kwang-jin and Jeon Byung-heon of the New Politics and Democracy Alliance, discussed the complete exclusion of university students and graduates from the industrial skilled worker system from this year. The number of university students has been declining every year, despite the fact that they have been the driving force behind the development of the Korean IT industry. The two lawmakers, Park Hwan-soo, president of the Korea Software Industry Association, and guest university students spoke about the benefits of university students and the difficulties caused by the sudden policy change, arguing for the inclusion of university students in the workforce. However, Kwon Young-kyu, the director of the Armed Forces Management Agency, disagreed, citing equity issues with other industries and support for vocational schools and meister schools.
The intentions of the Armed Forces Recruitment Agency are understandable. However, the actual policy lacks an understanding of the industry. In this discussion, I would like to argue that the Industrial Skilled Worker System should be reverted to a form that includes university students, as there are many parts that are overlooked in the rationale cited by the Armed Forces.
The Industrial Skilled Worker System led the development of the IT industry
The Industrial Skilled Worker System is a system that uses part of the military service resources as research and manufacturing personnel in industrial companies to develop national industries. Enlistees who meet the qualifications in the field can serve as industrial skilled workers at a designated company selected by the head of the Armed Forces, and the designated company can select as many industrial skilled workers as the number of people assigned by the Armed Forces every year. This system allows enlistees to serve in the military while building a career in their specialized field, while the designated companies benefit from the convenience of receiving the necessary manpower.
The impact of the program on the development of the Korean IT industry has been significant. The system has been used as a window for small and medium-sized enterprises that have difficulties in funding and manpower supply to obtain high-quality personnel from prestigious universities relatively easily from the beginning of their business. In addition to solving military problems, university students have been able to play an important role in driving the company’s growth, gaining a different level of experience than working for a large company. In fact, many large game companies have had developers who worked as industrial technicians in the early stages of their establishment remain in key positions even after military service, and they have made great contributions to the development of the domestic game industry.
Background of the Industrial Skilled Worker System in IT and its necessity
The Industrial Skilled Worker System was introduced in the 1970s and is one of the most important programs that has contributed to Korea’s industrial growth. At that time, Korea was experiencing a severe shortage of technical manpower as it was rapidly industrializing. To solve this problem, part of the military service resources were deployed to industrial sites to support production and technology development. Especially since the 1990s, the system has played a prominent role in fostering software development and IT manpower in line with the rapid growth of the IT industry.
Beyond just supplying labor, the Industrial Skilled Worker Program has contributed to strengthening the competitiveness of industries and building a solid domestic technology infrastructure. Unlike large companies, small and medium-sized enterprises face relatively greater difficulties in terms of funding and manpower, and university students have been an important factor in alleviating these difficulties. In addition, university students had the opportunity to gain practical experience while serving in the military and apply their knowledge in the real world.
Exclusion of University Students from Industrial Skilled Workers and Partial Amendment of the Military Service Act
On December 9, 2023, the list of active duty industrial technician assignments announced by the Ministry of Military Affairs and Security was changed to exclude university students and only select graduates of vocational schools and Meister High School. Although there was an announcement that Meister High School graduates would be prioritized, there was great confusion as neither companies nor applicants expected that university students would be completely excluded. Many opposed the government’s policy for not considering the IT industry’s situation, and some criticized the sudden announcement without prior notice.
In response, on April 4, 2023, Representative Kim Kwang-jin introduced a bill to amend the Military Service Act to include university students in the Industrial Skilled Worker System for the IT sector. If passed, the bill will explicitly add a clause that prevents discrimination in the assignment of industrial skilled workers based on academic background. Therefore, not only graduates of vocational high schools or meister schools, but also university students and graduates will be able to serve as industrial technicians if they qualify. To shape public opinion, Representative Kim organized a policy debate with Representative Jeon Byung-heon on the topic of ‘Exclusion of University Students from ICT Industrial Skills Workers, Is It Reasonable?
Armed Forces Administration’s arguments and their limitations
In the debate, Kwon Young-kyu, head of the Industrial Support Division of the Armed Forces Administration, argued that the number of industrial skilled workers is limited, and the policy that favors high school graduates has inevitably denied university students the opportunity. The preference for vocational high school and Meister high school graduates in the assignment of industrial technicians is part of a policy to promote high school graduates’ employment and reduce the trend of unfair discrimination based on educational background. One of the reasons for prioritizing high school graduates who can continue working is that it has been pointed out as a problem that industrial skilled workers who are college students return to school instead of staying in the industry after their service.
Kwon added that the specialized researcher system for those with master’s degrees or higher can be utilized to recruit the talent the industry is looking for. The Industrial Skilled Worker Program is a system that supports people who produce or manufacture products on-site, not a system that fosters talent.
Consider the differences between the IT industry and general manufacturing
Excluding university students from the program is a hasty policy that doesn’t take into account the specificities of the IT industry. The Ministry of Defense claims that it cannot give preferential treatment to the IT industry for the sake of equity with other industries, but this is wrong. There are clear differences between the general manufacturing industry and the IT industry, and that’s reason enough to apply different standards to the IT sector.
Unlike other manufacturers, IT companies require a certain level of specialization and skill. In the case of IT ventures that are eligible for the Industrial Skilled Worker program, there is often a shortage of software developers. So, not only are the duties of an I.T.S. worker vast compared to other industries, but there aren’t enough people to train them. For this reason, companies want their new hires to have enough skills to be able to hit the ground running.
However, it’s hard to expect this kind of expertise from technical or meister school graduates. Most technical colleges have information processing majors, but the curriculum is more focused on computer literacy than on specialized software development or foundational knowledge. Even in the case of Meister High School, there is only Daedeok Software Meister High School with a capacity of 42 students, so IT companies have to recruit people who have not learned even the basic knowledge necessary to work as industrial skilled workers. This is a sigh of relief for companies that expect professionals who can be entrusted with the important tasks of the company, not mere laborers who handle menial tasks.
A disappearing engine of IT growth
It’s also problematic to ignore the impact that the IQT program had on the development of the IT industry. It motivated many students to enter the IT field, and it also reduced the burden of starting a business by allowing them to find the talent they needed to grow with little funding. The motivation provided by the Industrial Skilled Worker Program has been the driving force behind the development of the domestic IT industry. If the skilled labor program is not able to function properly, it will intensify the avoidance of software development and stagnate the IT venture industry.
