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This paper attempts to examine the possibility of economic cooperation between Korea and Mongolia in the field of human capital. Traditional trade theory provides the rationale of comparative advantage in both countries such that Korea supplies capital and Mongolia offers natural resources. This rationale connotes, however, the predictable problems that can follow from development known as the “Dutch disease” may appear in Mongolia if they overlook the seriousness of developing human capital. Korea also has the problem of importing foreign workers because of a labor shortage since the 1990s due to low fertility and an aging society. The most urgent task of Mongolia, therefore, should be a policy of educating the human capital necessary to lead the future industrialized Mongolia. The most urgent task for Korea should be the policy of educating foreign human capital necessary to lead the future post-industrial Korea.
The demographic characteristics are compared between Mongolia and Korea. The Korean labor market is surveyed with a focus on labor supply and demand and the demand for foreign industrial labor specifically. The labor market and vocational education in Mongolia are then studied and the contents of vocational education are analyzed with respect to the contents of Korean professional training. At the end, measures for enhancing Mongolian workers inflows into Korea are proposed.
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