Conflicts between the Education Ministry and local education superintendents are intensifying over proposed changes to local education financial grants. The ministry has asserted that funding will increase by 10.1% next year, claiming sufficient financial resources. However, the Korea Association of Superintendents, representing 17 local education offices, has countered that the ministry is selectively presenting statistics to mislead public opinion.
Concerns are growing that budget cuts, justified by a declining school-age population, ignore rising essential expenditures such as inflation, exacerbating financial difficulties for schools.
On September 7, the association released a statement criticizing the ministry's recent report on local education financial grants, stating, "The ministry distorts facts by emphasizing only the increase in grants while omitting the reasons for reduced funding, creating a false impression of financial stability."
Previously, the ministry announced that the 2027 budget for local education grants would reach 78.9 trillion won, a 10.1% increase from the 2026 budget of 71.7 trillion won, asserting that this would adequately cover essential costs such as personnel and operational expenses.
"10.1% Increase? Just an Illusion"—Ministry Uses Selective Statistics
The primary contention revolves around the perceived illusion of the 10.1% increase. The ministry calculated this figure by comparing the 2027 grant amount to the 2026 budget.
However, the association argues that the actual budget secured through this year's supplementary budget is 76.4 trillion won. When compared to the proposed 2027 budget, the real increase amounts to approximately 2.43 trillion won, or just 3.2%.
The association stated, "By excluding the natural increase in tax revenue reflected in this year's supplementary budget, the ministry has inflated the numbers to create the impression of a significant budget increase."
A more serious issue is the abolition of the post-settlement system. Previously, if domestic tax revenues exceeded initial forecasts, additional grants were provided to education offices. The government's proposed changes eliminate this post-settlement function, meaning education offices can no longer expect additional funding even if tax revenues increase.
The association criticized the ministry for comparing this year's budget, which benefited from post-settlement increases, to a new system that lacks such provisions, calling it a flawed comparison.
Budget Increases by 2.43 Trillion Won, but 1.8 Trillion Won Disappears
Even with a reported increase of 2.43 trillion won in grants, the financial situation for education offices may not improve. According to the association, funding for free high school education will decrease by about 274.1 billion won, and local education tax revenue from tobacco consumption will drop by 1.6 trillion won, effectively removing that amount from education office revenues. This means that while 2.43 trillion won is added to one pocket, 1.87 trillion won is taken from another.
Additionally, essential costs such as salaries, operational expenses, meal costs, public utility fees, and facility maintenance are expected to rise steadily. Significant national financial demands, such as the integration of kindergartens and daycare centers, are also on the horizon.
The association remarked, "Ignoring the reality of declining revenues and increasing expenditures while touting the increase in grants as sufficient demonstrates a lack of understanding of the situation on the ground."
"3.7 Trillion Won Left in Funds, So Everything is Fine?"—Government Aware of Depletion Rate
The ministry's claim that local education offices will have a projected fund balance of 3.7 trillion won by the end of the year has also come under scrutiny.
The association pointed out that these funds have been steadily depleted over the past four years, averaging 4.5 trillion won annually to cover shortfalls in tax revenue. With the abolition of post-settlement and a shrinking revenue base, the prospect of replenishing these emergency funds is bleak. They criticized the notion that a dwindling account balance indicates financial health.
Furthermore, the government's plan to reduce the grant increase rate by 3.5 percentage points for every 10% decline in the school-age population has been challenged. The association emphasized that a decrease in students does not proportionately reduce costs for maintaining school facilities or paying staff salaries, urging the government to provide transparent calculations.
Jeong Geun-sik, president of the Korea Association of Superintendents and Seoul's education superintendent, stated, "The government must reflect all factors, including grants, national transfers, local education taxes, funds, and essential expenditures, to present a comprehensive financial impact for each of the 16 local education offices. The ministry should not mislead public opinion by presenting the 10.1% increase based on the 2026 budget as if it were an increase from the current grant size. Instead, they should listen to the voices from the education field and engage in thorough discussions with education offices to implement necessary reforms."
* This article has been translated by AI.
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