This report assesses the changes occurring in both South Korea and the People's Republic of China regarding educational development. It is noted that with the introduction of advanced technology, both Korea and China have tried to catch up with international developments. Additionally, in order to compete successfully on the world market, both countries have tried to achieve economic reform, together with educational reform, based on free market mechanisms. The report focuses on the manpower availability and development among the citizenry in light of efforts to modernize. Manpower status and demand are presented and compared between the two countries and the following observations are presented: (1) both countries need a higher quality labor force; (2) the manpower supply system needs to be developed in a way that directs greater attention to the quality of higher education; (3) China needs to increase enrollments and to expand facilities in higher education, and Korea needs to formulate a policy to provide support for the improvement of conditions for graduate education in science and technology; and (4) both China and Korea need to increase the numbers of high school students with vocational/technical skills and knowledge. Appendices list 5 goals of China's 1985 Educational Reform Report and 10 recommendations made by Korea's Educational Reform Committee in 1985-87. Contains 25 references. (GLR)