This report is part of the OECD’s ongoing work on building effective national and local skills strategies. Skills have become the key driver of individual well-being and economic success in the 21st century. Without proper investment in skills, people languish on the margins of society, technological progress does not translate into growth, and countries are unable to compete in increasingly knowledge-based global economies. Effective skills systems connect skills with economic development to deliver prosperity and social cohesion.

The OECD Skills Strategy provides countries with a framework to analyse their strengths and weaknesses as a basis for taking concrete actions according to the three pillars that comprise a national skills system: 1) developing relevant skills from childhood to adulthood; 2) activating these skills in the labour market, and 3) using these skills effectively in the economy and society. This diagnostic report presents the main outcomes of Korea’s collaborative project with the OECD, which ran from July 2013 to February 2014. It identifies 12 skills challenges that need to be addressed to build a more effective skills system in Korea.