As the government, including the Ministry of Planning and Finance, rushes to reform local education grants citing declining student numbers, strong criticism has emerged from the education sector. It is argued that education finance should not be viewed merely through the lens of economic logic or cost-cutting, but rather as a necessary investment to secure South Korea's future growth potential.
The Korea Association of Superintendents held a public discussion on the stabilization of local education finances on July 29 at the Seoul Metropolitan Office of Education auditorium. This forum was organized in response to the unilateral moves by financial authorities to adjust the calculation of grants linked to domestic tax revenues based on economic growth rates and changes in the school-age population, aiming to create a platform for public discourse.
The event saw participation from Superintendent Jeong Geun-sik, Democratic Party lawmaker Ko Min-jeong, superintendents from across the country, academic experts, and representatives from teacher and parent organizations. The discussion was chaired by Professor Na Min-joo from Chungbuk National University, who led a lively debate.
The Korea Association of Superintendents held a public discussion on the stabilization of local education finances on July 29 at the Seoul Metropolitan Office of Education auditorium. This forum was organized in response to the unilateral moves by financial authorities to adjust the calculation of grants linked to domestic tax revenues based on economic growth rates and changes in the school-age population, aiming to create a platform for public discourse.
The event saw participation from Superintendent Jeong Geun-sik, Democratic Party lawmaker Ko Min-jeong, superintendents from across the country, academic experts, and representatives from teacher and parent organizations. The discussion was chaired by Professor Na Min-joo from Chungbuk National University, who led a lively debate.
Superintendent Jeong Geun-sik: "Education finance is a promise to future generations; it should not be decided solely on financial logic"
In his opening remarks, Jeong Geun-sik, president of the Korea Association of Superintendents and superintendent of the Seoul Metropolitan Office of Education, strongly emphasized the intrinsic value of education finance and the importance of the principle of linking it to domestic tax revenues.
He stated, "Education is the most important foundation that changes a child's life, shapes the future of communities, and drives sustainable national development. The issue of local education finance should not be viewed merely as a reduction in grants due to declining student numbers, but rather as a question of how much the state is willing to invest in education for future generations."
Jeong expressed concern over the Ministry of Planning and Finance's intention to amend the 20.79% linkage rule for domestic taxes, warning that such changes could lead to a reduction of at least 10 trillion won in next year's grants. He acknowledged the need for increased national responsibility in early childhood and higher education but argued that undermining the financial foundation of local education offices to expand new investments is merely a zero-sum game within the education sector. He insisted that significant changes should not be decided solely based on financial logic without considering the educational field.
He stated, "Education is the most important foundation that changes a child's life, shapes the future of communities, and drives sustainable national development. The issue of local education finance should not be viewed merely as a reduction in grants due to declining student numbers, but rather as a question of how much the state is willing to invest in education for future generations."
Jeong expressed concern over the Ministry of Planning and Finance's intention to amend the 20.79% linkage rule for domestic taxes, warning that such changes could lead to a reduction of at least 10 trillion won in next year's grants. He acknowledged the need for increased national responsibility in early childhood and higher education but argued that undermining the financial foundation of local education offices to expand new investments is merely a zero-sum game within the education sector. He insisted that significant changes should not be decided solely based on financial logic without considering the educational field.
Lawmaker Ko Min-jeong: "We must prove the necessity of education finance with numbers; a clear vision is needed"
Lawmaker Ko Min-jeong, a member of the National Assembly's Education Committee, criticized the poor conditions in schools and urged superintendents to take proactive measures.
She pointed out, "There are still schools with squat toilets, and many school buildings are 40 to 50 years old. Why can apartments be rebuilt while schools cannot?" This was in response to claims that there is excess education finance.
Ko also clarified the structural limitations of grants, stating, "The media and business sectors often distort the perception that all grants can be freely used, but in reality, 56% goes to personnel costs, and 19.1% is for essential fixed costs like school transfers. Only about 25% is available for actual policy or facility improvements, and even that must be allocated for free meal programs and after-school services."
She urged superintendents not to limit their arguments to simply opposing budget cuts but to present a clear vision of what they will do with the remaining grants to nurture future talent and to demonstrate transparency to the public with numbers.
She pointed out, "There are still schools with squat toilets, and many school buildings are 40 to 50 years old. Why can apartments be rebuilt while schools cannot?" This was in response to claims that there is excess education finance.
Ko also clarified the structural limitations of grants, stating, "The media and business sectors often distort the perception that all grants can be freely used, but in reality, 56% goes to personnel costs, and 19.1% is for essential fixed costs like school transfers. Only about 25% is available for actual policy or facility improvements, and even that must be allocated for free meal programs and after-school services."
She urged superintendents not to limit their arguments to simply opposing budget cuts but to present a clear vision of what they will do with the remaining grants to nurture future talent and to demonstrate transparency to the public with numbers.
Superintendents: "Budget cuts will collapse school environments and accelerate local extinction"
During the main discussion, superintendents Yoon Geon-young from Chungbuk, Jo Yong-sik from Ulsan, and Kwon Soon-ki from Gyeongnam sequentially addressed the urgent financial crises faced by local education offices and the surging demand for education.
Superintendent Yoon stated, "Even with a decrease in student numbers, the number of schools, classes, and specialized personnel in areas like cooking, health, and counseling is actually increasing." He added, "Unlike in the past, we now require substantial budgets for quality improvements in education, such as AI-based personalized learning, upgrading aging facilities, and expanding special education. The next ten years are a golden time for future education, and reducing budgets based solely on economic metrics would be a national loss."
Superintendent Jo expressed frustration over criticisms that grants are being mismanaged. He countered, "Labeling the smart devices and disaster relief funds provided during COVID-19 as cash handouts or mismanagement ignores the essence of educational welfare." He also noted that there is insufficient funding for essential safety measures and improving the treatment of non-regular workers, stating, "We are not misusing funds; we are simply underfunded despite providing necessary support."
Superintendent Kwon pointed out that budget cuts contradict the goal of balanced national development. He noted that in Gyeongnam, 18% of schools have fewer than 60 students, and budget reductions could force these schools into forced mergers, leading to accelerated local extinction. He criticized the government's contradictory policies of expanding new responsibilities while cutting finances, asserting that South Korea should aim to build a future education safety net that ranks among the top three or four globally, rather than just meeting OECD averages.
Superintendent Yoon stated, "Even with a decrease in student numbers, the number of schools, classes, and specialized personnel in areas like cooking, health, and counseling is actually increasing." He added, "Unlike in the past, we now require substantial budgets for quality improvements in education, such as AI-based personalized learning, upgrading aging facilities, and expanding special education. The next ten years are a golden time for future education, and reducing budgets based solely on economic metrics would be a national loss."
Superintendent Jo expressed frustration over criticisms that grants are being mismanaged. He countered, "Labeling the smart devices and disaster relief funds provided during COVID-19 as cash handouts or mismanagement ignores the essence of educational welfare." He also noted that there is insufficient funding for essential safety measures and improving the treatment of non-regular workers, stating, "We are not misusing funds; we are simply underfunded despite providing necessary support."
Superintendent Kwon pointed out that budget cuts contradict the goal of balanced national development. He noted that in Gyeongnam, 18% of schools have fewer than 60 students, and budget reductions could force these schools into forced mergers, leading to accelerated local extinction. He criticized the government's contradictory policies of expanding new responsibilities while cutting finances, asserting that South Korea should aim to build a future education safety net that ranks among the top three or four globally, rather than just meeting OECD averages.
Experts and Parents: "Learn from Japan's failures to avoid collapse of public education and rising private tuition"
Experts and representatives from the school community also voiced concerns about the dangers of budget cuts. Senior researcher Kwon Soon-hyung from the Korea Educational Development Institute emphasized the need to learn from Japan's failures. He stated, "In the 1990s, Japan faced national financial pressure, leading to cuts in national subsidies and the offloading of education finance to local governments through the 'trinity reform.' This resulted in serious side effects, including a concentration of tax sources in urban areas, a surge in temporary teachers instead of permanent staff, and a chain of closures of small rural schools, leading to a vicious cycle of declining quality in public education."
Former planning and coordination director Jo Jae-ik of the Seoul Metropolitan Office of Education pointed out that due to the current mandatory expenditure structure, over 80% of the budget is tied up in fixed costs like personnel and school transfers, resulting in a severely inadequate flexible budget. He noted that in Seoul, 34.3% of school buildings are over 40 years old, the highest in the country, and emphasized the need for substantial ongoing investment to address issues like overcrowded and underpopulated classes, aging facilities, and tailored support for multicultural and at-risk students.
Lee Eun-jung, spokesperson for the Korea Elementary School Principals Association, stressed the importance of recognizing the fixed cost characteristics of school operations. She warned, "Even if the student population is halved, heating and electricity costs do not decrease by half. Budget cuts will lead to reductions in student activity funds and teaching materials, as well as delays in facility repairs, directly threatening student safety and lives."
Kim Dong-seok, head of the Korean Federation of Teachers' Associations' Policy Division, criticized budget cuts, stating they would lead to the consolidation of small schools, delays in resolving overcrowded classes, and difficulties in staffing non-core teachers like health and counseling staff. He argued that this undermines national education initiatives like the high school credit system and amounts to a declaration of abandoning national responsibility for education.
Finally, Ye Mi-ae, a member of the National Parents Association for Equal Education, highlighted the seriousness of rising private education costs. She noted, "Despite a decrease of 80,000 students last year, private education expenses increased by 2.1 trillion won. Grants and private education expenses are two sides of the same coin for the same students. When national finances are reduced, that burden is directly shifted to families' private education costs."
Former planning and coordination director Jo Jae-ik of the Seoul Metropolitan Office of Education pointed out that due to the current mandatory expenditure structure, over 80% of the budget is tied up in fixed costs like personnel and school transfers, resulting in a severely inadequate flexible budget. He noted that in Seoul, 34.3% of school buildings are over 40 years old, the highest in the country, and emphasized the need for substantial ongoing investment to address issues like overcrowded and underpopulated classes, aging facilities, and tailored support for multicultural and at-risk students.
Lee Eun-jung, spokesperson for the Korea Elementary School Principals Association, stressed the importance of recognizing the fixed cost characteristics of school operations. She warned, "Even if the student population is halved, heating and electricity costs do not decrease by half. Budget cuts will lead to reductions in student activity funds and teaching materials, as well as delays in facility repairs, directly threatening student safety and lives."
Kim Dong-seok, head of the Korean Federation of Teachers' Associations' Policy Division, criticized budget cuts, stating they would lead to the consolidation of small schools, delays in resolving overcrowded classes, and difficulties in staffing non-core teachers like health and counseling staff. He argued that this undermines national education initiatives like the high school credit system and amounts to a declaration of abandoning national responsibility for education.
Finally, Ye Mi-ae, a member of the National Parents Association for Equal Education, highlighted the seriousness of rising private education costs. She noted, "Despite a decrease of 80,000 students last year, private education expenses increased by 2.1 trillion won. Grants and private education expenses are two sides of the same coin for the same students. When national finances are reduced, that burden is directly shifted to families' private education costs."
* This article has been translated by AI.
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