The crisis among local education offices in South Korea is intensifying as the government announces an increase in local education funding for the upcoming year. However, education officials argue that when considering the expiration of existing resources, the transfer of education taxes, and significant increases in mandatory expenditures, the actual funding for primary and secondary education is shrinking. The depletion of funds that previously helped mitigate financial shocks has also raised alarms across various education offices.
On September 22, the Korea's Education Superintendents Association released a report detailing the impact of the government's proposed changes to local education funding. The association stated, "It is difficult to conclude that the financial conditions of local education offices will improve simply because the funding amount for 2027 is projected to increase compared to the previous year." This highlights the dual burden of reduced revenue and increased mandatory spending hidden within the government's budget proposal.
The Ministry of Education's budget proposal for local education funding in 2027 is set at 78.8718 trillion won, representing a 10.1% increase (7.2031 trillion won) from the 2026 budget of 71.6687 trillion won.
However, the association's calculations differ. When comparing the actual funding amount, which includes the 2026 supplementary budget (76.4381 trillion won), the real increase is only about 2.4337 trillion won, translating to a mere 3.2% growth.
The association pointed out that even this modest increase is insufficient to cover the rising costs of personnel. They noted, "Personnel costs for educators have been increasing by more than 2.4 trillion won annually, and significant increases are expected in 2027 as well." They emphasized that adjustments to civil servant salaries and teacher numbers are determined by the central government, leaving local education offices with limited flexibility.
The structural collapse of funding sources is also a serious concern. The current local education funding relies on 20.79% of domestic taxes and education taxes. However, if the government's proposed changes are implemented, approximately 1.8 trillion won currently allocated for primary and secondary education will be transferred to the special account for higher and lifelong education support.
Additionally, by December 31, 2026, key temporary funding sources for local education, such as the local education tax from tobacco consumption, amounting to about 1.6 trillion won, will expire.
The national burden for free high school education is also rapidly decreasing. The government support ratio, which was 30% (578.5 billion won) in 2026, will drop to 15% (304.4 billion won) in 2027. Furthermore, the current special provisions for free education are set to expire at the end of 2027, and without an extension, local education offices could face a burden of hundreds of billions of won. Transfers from local governments are also being reduced or delayed.
Various policy initiatives are leaving local education offices with the responsibility for their funding. National projects, such as the Spring School and after-school programs, which began with national funding, will shift to local budgets after support ends. The lack of separate funding for reserve integration is expected to exacerbate financial pressures.
Local education offices' own funds, which have previously helped defend against financial shocks, are rapidly depleting, having peaked at 20.2 trillion won in 2022. Some education offices are even considering issuing local bonds due to severe financial pressure.
Choi Geun-sik, the association's president, emphasized, "To understand the actual conditions of local education finance, we must look beyond the simple increase in funding. We need to comprehensively assess the impacts of education tax transfers, the expiration of existing revenues, changes in local government transfers, and additional burdens from national policy initiatives and new policies."
He added, "The government and the National Assembly must transparently disclose changes in revenue and expenditure for each local education office before and after the institutional reforms, allowing for an objective assessment of the changes in local education finance. They should also prepare long-term funding strategies to ensure stable educational operations."
* This article has been translated by AI.
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