It was a general consensus that education system and the employment system are two strictly separate fields, related to each other by the fad that majority of university graduates will enter into industries and that all people engaged in an occupation have at one time or another attended an education institute. Therefore, the dialogue between the two systems are not frequent enough to understand but accuse each other. Employees often say that university does not adequately prepare the young for their future occupation, while the educators retort them that employers think ply of profitability without regard to human values. However, the relationship between education and occupation is neither simple nor one-side, but rather an intricate interdependence. Job entry requirements affect university curriculum, where as graduates` qualifications determine the productivity of labor market. Moreover, values an occupational structure and educational institutions influence parent`s and youths` choice of education and job. There are two modes of interaction between university education and labor market : quantitative and qualitative. Quantitative interaction mode is based on demand and supply of high level manpower. The basic concept of this mode is that in a certain period of time the industry will need X number of university graduates, so that enrollment quota of university should be expanded or reduced. In adopting this mode careful consideration is needed, because of inaccuracy of forecasting data. Wages of employees are the result of qualitative interaction mode. Individuals invest in education up to the point where the cost of acquiring human capital in terms of income forgone and university tuitions equals the discounted value of the expected future income increments resulting from the investment. Employers offer certain wages to university graduates based on expected performance and productivity. No orthodox theory has yet established as to wage determination, because it varies from individuals to institutions. In view of the importance of interaction between university education and labor market in terms of accountability, it is necessary to have a mechanism for channelling the two systems. One way of ensuring accountability of university education is to assess industrial needs frequently and regularly. Results of needs assessment should be reflected in the planning of university education and during the actual implementation of the plan. Industry should abandon its age-old employment practices and to adopt new standards bred on productivity and performance. An intermediary organizations like the Korean Council for University Education should do its utmost in promoting quality education in universities and as a result of it supplying qualified personnel to industry.