The Individual Training Account System(ITAS) is a new vocational training system for the unemployed in Korea. This paper analysis ITAS based on the theoretical framework of contracting-out public services. The results show that ITAS has problems of targeting and mismatch with the training needs of the industry. Also the possibility of the moral hazard problems of training institutions and trainees can be increased in ITAS. The unstability of training market may deteriorate the quality of the vocational training under ITAS. In order to solve these problems, there should be consulting services on the job finding and vocational training before issuing the training account so that trainees can take guided training courses according to industrial needs for vocational training. Government has to develop a more efficient monitoring and evaluation system on the vocational training institutions and to restructure the private training market based on the evaluation.