The Key to Securing Young Workforce in Industrial Complexes is 'Fostering Knowledge-Based Industries'

A study has found that the key to securing excellent young talent in regional industrial complexes is the ‘promotion of knowledge-based industries.’ In a situation where young people avoid employment in regional industrial complexes and the outflow of young talent is worsening, it is said that a structural transition centered on knowledge-based industries must be actively pursued to narrow the gap between industrial complex jobs and jobs preferred by young people.

On the 23rd, the Korea Industrial Complex Corporation’s Industrial Location Research Institute published ‘Industrial Location ISSUE & TREND.’ This report covered advanced knowledge-based industries and youth employment status in major national industrial complexes (san-dan). The analysis targeted 27 major national san-dan. Knowledge-based industries refer to the industrial sector that includes both knowledge-based manufacturing and knowledge-based services, which create high added value based on knowledge, distinguished from traditional manufacturing in the Korean Standard Industrial Classification. The share of knowledge-based manufacturing is 19.3% of total manufacturing, and knowledge-based services account for 32.9% of total services.

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According to the analysis, among major national san-dan, Daegu had the highest proportion of knowledge-based manufacturing by number of workers (67.9%). It was followed by Iksan (65.8%), Osong Life Science (64.9%), and Ulsan·Mipo (58.7%). The san-dan with the highest share of knowledge-based services was Seoul (53.4%), followed by Gwangju Advanced (22.8%) and Gunsan 2 (13.3%).

The Industrial Location Research Institute classified each san-dan into four types to understand the relationship between knowledge-based industries and jobs. First, san-dan where both knowledge-based manufacturing and services exceed the average were classified as ‘knowledge-based industry dominant type,’ and those below average as ‘knowledge-based industry subordinate type.’ The dominant type includes Gwangju Advanced and Bitgreen, while the subordinate type includes Gunsan, Yeosu, and Noksan. Additionally, knowledge-based service dominant and knowledge-based manufacturing dominant types were also distinguished.

Examining the relationship between this classification and the proportion of youth employment under 34 years old, it was found that the higher the proportion of knowledge-based industries in national san-dan, the higher the youth employment rate. Although the Seoul san-dan, classified as knowledge-based service dominant, had the largest youth employment scale, regionally, the youth employment scale was relatively large in major national san-dan classified as knowledge-based manufacturing dominant. San-dan such as Gumi, Namdong, Banwol, and Ulsan·Mipo, which belong to this type, each employ more than 10,000 young people.

Osong Life Science Industrial Complex

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Similarly, the Osong Life Science san-dan, also of this type, has a youth employment number in the 1,500 range, but the proportion of youth in the total workforce is 28%, the highest among major san-dan. The data confirms that national san-dan with a concentration of knowledge-based industries have a high proportion of youth employment. This means that the structural characteristics of regional san-dan industries can play a crucial role in attracting young talent.

Han Seong Woo, senior researcher at the Korea Industrial Complex Corporation’s Industrial Location Research Institute, said, "For securing excellent young talent and revitalizing the regional economy, it is most important to promote industrial structural transformation through fostering knowledge-based industries for various industrial complex environment improvement policy projects currently underway to have practical effects." He added, "Industrial complex-based innovation policy projects such as Smart Green San-dan and advanced industry promotion strategies should be interconnected and actively utilized as means to foster regional knowledge-based industries."

Asia Economy - Korea Industrial Complex Corporation Joint Project

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