The Polytechnics in each country have built on their different factors of historical, cultural, socio-economic, demographic, political backgrounds on a non-linear time line. Hence, their own responses to the skills formation and the competency-based education are different, and the ways that institutional actors define their places and positions, and compromise and negotiate with different actors for developing qualifications and competency-based education are also different.

This paper aims (1) to reflect on the complexities and challenges in reforming mechanical engineering sector of the vocational higher education in Finland (AMK, University of Applied Science) and South Korea (University Colleges) and their needs of labour market and (2) to find out political and institutional solutions to renew the vocational higher education system in different contexts.

Under all considerations, the main research question is as follows; what underlying cultural factors between Finland and South Korea in terms of institutional identities and the meaning of vocational higher education can be traced behind the strategic solutions, negotiation and influencing patterns of skills formation and competency-based education?

After all, the meaning of vocational education and training can be unfolded in a process of locating unstable positions between “economic growth/efficiency/capitalism” and “distribution of welfare/equity/community values” and (co-/re-/de-)formulating individual and collective ethos and identities on a non-linear timeline in response to different perspectives, concerns and issues of transnationalization of qualifications and quality assurance in different context.

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