Editorials
Education grant reform can no longer be delayed
A government forum highlighted mounting concerns that Korea’s automatic education grant system is driving wasteful spending despite a shrinking student population.
Education groups strongly oppose proposals to reduce local education grants. At a meeting of newly elected education superintendents in Sejong on June 15, participants including Seoul Superintendent Chung Keun-sik, fifth from left, hold up a banner that reads, “Reducing education funding means giving up on future generations.”
SEOUL METROPOLITAN OFFICE OF EDUCATION/NEWS1
The Ministry of Planning and Budget and the Ministry of Education held a public forum Wednesday on reforming Korea's Local Education Grant system. The discussion addressed growing concerns over excessive spending and inefficiency as education grants continue to rise automatically with tax revenue despite a declining school-age population.
Although calls for reform have persisted for years, meaningful changes have repeatedly stalled because of opposition from education groups and local education offices. The divisions were evident again at the forum. The Budget Ministry argued for more efficient use of public funds while the Education Ministry warned that altering the current system could weaken the financial safety net supporting schools.
Education grants are the primary source of funding for elementary and secondary education. Under the Local Education Grant Act, introduced in 1972, 20.79 percent of domestic tax revenue is automatically allocated to provincial and metropolitan education offices. The system was designed to guarantee stable education funding when government finances were tight.
Today, however, the circumstances have changed. Student enrollment continues to decline while tax revenue has grown, leaving the rigid funding formula increasingly disconnected from actual demand. Excess funds have been spent on cash subsidies, employee welfare programs and the accumulation of large reserve funds, fueling criticism of wasteful spending. Over the past decade, the number of students has fallen by 16.3 percent, yet the number of teachers and education employees has increased by 12.9 percent.
Many local education offices have also expanded direct cash assistance, making the grants appear more like discretionary funds controlled by elected superintendents. Offices across the country provide admission subsidies, field-trip allowances and tablet computers while introducing a variety of other benefits that often resemble campaign promises more than educational necessities.
This year's education grants are expected to total 76 trillion won ($49.7 billion), roughly double the level of a decade ago. In addition, the semiconductor boom is projected to generate about 100 trillion won in additional tax revenue, automatically increasing education grants by another 21 trillion won.
The problem is no longer a shortage of funding but how to spend an overflowing budget responsibly. Allowing the current system to continue unchanged will only increase the risk of wasting taxpayer money.
A better balance is possible. Korea can preserve stable funding for schools while making education spending more efficient and more responsive to demographic realities.
The education community should also move beyond defending its institutional interests. It should participate constructively in designing a funding system that better reflects Korea's changing population and fiscal environment while maintaining strong support for students and schools.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
