Daewoo Shipbuilding & Marine Engineering, the nation’s second biggest shipbuilder, is developing a different model for recruitment of high school graduates in Korea by running a corporate university.

The company started inviting high school graduates to apply to the DSME Heavy Industries Academy on Monday. The academy was established in Geoje, South Gyeongsang Province last year, where the shipbuilder’s headquarters is located.

It is not common for a Korean company to set up a corporate university, which refers to an educational entity set up by a company to provide employees or potential employees company-specific education and training.

“We are going to select about 100 candidates after a test and an interview. The academy will offer them college-level academic education and on-site training opportunities tailored to the shipbuilding industry,” the company said in its statement. 

Those who are interested in DSME’s university can apply to the “DSME engineering” or “design and production management” course. If they enter the academy, students will take an intensive academic course for one year and go back and forth between study and on-site training in the second year.

As the company gained approval as a college from the Ministry of Education, Science and Technology this year, graduates of the academy will attain a college degree and after graduation, they will be placed at DSME.

“The goal of the academy is to cultivate global talent in shipbuilding engineering and design by providing practical education and training required at work,” the company said.

DSME’s corporate university for high school graduates attracted attention in Korean society last year as it was highlighted mostly as way to lower youth unemployment, one of biggest social issues in Korea.

The opening of the academy gained positive feedback from many sectors for breaking a tradition in employment in Korea. Usually, companies in Korea, regardless of size or job function, tend to recruit university graduates. Korea’s university entrance rate stood at 79 percent in 2010, far higher than the Organization for Economic Cooperation and Development average of 56 percent. Inflation of academic qualifications has created an array of issues, including households’ overspending on education.

DSME’s move was also hailed as a sustainable model to nurture talented staff with the skill sets needed by the company.

The number of companies hiring high school graduates has been increasing for the past few years, but most jobs open to high school graduates were limited to simple work like bank telling and lower paid jobs compared to jobs taken by university graduates.

By Seo Jee-yeon  (jyseo@heraldcorp.com)