This paper is the result of a joint partnership between the Social Protection Unit of the World Bank and the Korean Ministry of Labor on Skills Development. This partnership was aimed at better understanding the Korean skills development strategy and drawing lessons and best practices for developing countries. The Korean vocational education and training (VET) system is heralded as one of the key factors contributing to the country’s past economic growth. VET has played an important role in developing a skilled labor force during Korea’s economic development. However, with the increasing importance of higher education and general education, the status of VET in the country is declining. This paper explores recent Korean data to analyze the labor market outcomes of pre- employment VET institutions. The findings show that current vocational high school education is not associated with better labor market outcomes, in terms of employment rate, wage levels, prospect of permanent employment, and transition to the first job, when compared to general high school education. Among VET programs, we find that graduates of higher level, more comprehensive VET pro grams experience greater labor market achievements than graduates of less competitive, shorter programs. The study also finds that the VET institutes play an important role in supplying technical labor to small and medium enterprises.