Education Officials Urge Review of Local Education Finance Reform Plan

by Kim Jun Hwan Posted : October 2, 2026, 11:04Updated : October 2, 2026, 11:04
The superintendents of education met with Kim Min-seok, the leader of the Democratic Party, to strongly urge a comprehensive review of the government's proposed local education finance reform plan. They emphasized that education funding should not be reduced solely based on declining student numbers and pointed out serious flaws in the government's calculations and financial forecasts.

They specifically warned that the newly established 'Future Response Fund' could absorb excess tax revenues generated under the current National Tax Linkage System (20.79%), severely constraining local education finances. Their key demands included legally specifying the allocation and usage principles for primary and secondary education and ensuring substantial participation from the education sector in the fund's decision-making process.

On October 1, the Korea Association of Superintendents (Chairman Jeong Geun-sik, Superintendent of Seoul) conveyed strong concerns from the education field regarding the government's local education finance reform plan and the Future Response Fund during a meeting with Kim Min-seok.

Seven superintendents attended the meeting, including Kwon Soon-ki (Gyeongnam), Kang Eun-hee (Daegu), Do Seong-hun (Incheon), Jo Yong-sik (Ulsan), Yoon Geon-young (Chungbuk), Kim Dae-jung (Jeonnam), and Lee Byeong-do (Chungnam).
“Education Funding Should Not Be Cut Based on Declining Student Numbers”
The superintendents stressed that local education funding should not be reduced solely based on declining student numbers, but rather approached from the perspective of enhancing educational quality and investing in the nation's future. They pointed out that even with fewer students, basic operational costs for schools and classes continue to accrue, and new financial demands are surging, including the establishment of AI and digital education environments, ensuring basic academic skills, closing educational gaps, expanding care services, supporting special education, and improving aging educational facilities.

The superintendents specifically highlighted key issues with the government's reform plan, including: ▲ the lack of a solid basis for applying a 35% change rate in school-age population; ▲ projections of reduced funding compared to the current National Tax Linkage System of 20.79%; ▲ the opacity in determining the allocation and usage of the education talent account within the Future Response Fund; and ▲ insufficient justification for the new formula's benchmark amount (approximately 75.69 trillion won). They emphasized that the National Assembly should actively gather opinions from the education field to reassess the reform plan.
Future Response Fund Must Clearly Define Usage for Primary and Secondary Education
The superintendents also expressed strong opposition to the establishment of the Future Response Fund. They criticized the fund's structure, which could absorb excess tax revenues that should go to local education finances under the current National Tax Linkage System, potentially diverting education funds to other sectors and destabilizing financial support. They demanded that the fund's usage for primary and secondary education be clearly defined and that a sustainable legal distribution system be established that is not subject to fluctuations based on government financial conditions.

Additionally, they called for transparent sharing of discussions held on the Future Response Fund between the government and local governors. Local governors are also concerned about the reduction in education grants, and a thorough analysis of the actual impact of reduced local education finances is necessary. They insisted that a collaborative framework ensuring substantial participation from superintendents and the education sector in determining the fund's resource composition, scale, and distribution methods must be guaranteed.
Call for Transparency on Local Government Transfers and Prevention of Financial Burden Shifting
The superintendents raised serious concerns about the issue of local government transfer deficits. They pointed out the non-payment and delays in legal transfers from some local governments and the reduction of non-legal transfers, urging that the performance data on transfers reported under the 'Local Education Finance Grant Act' be transparently disclosed. They also highlighted the urgent need for institutional mechanisms to check the reduction or suspension of non-legal transfers, such as free meal costs and educational cooperation project funds.

They warned that a decrease in local grants would directly lead to reduced transfers from local governments to education offices, and if the sharing of costs for national and local projects, such as extended school hours, art instructors, and free meals, is cut or reduced, the burden would fall squarely on education offices. They also conveyed concerns about the potential reduction of legal transfers during discussions on administrative integration between Jeonnam and Gwangju, as well as regional financial issues such as the need for improvements to aging schools and the increase in multicultural students.

Kwon Soon-ki, chairman of the Local Education Finance Special Committee, stated, “All education communities, regardless of political affiliation, are expressing concerns and opposition to the government plan,” and urged Kim Min-seok to actively mediate to find a solution, so that children can feel the benefits of national economic growth and take pride in being part of an educational powerhouse. In response, Kim Min-seok acknowledged, “Even with a decrease in student numbers, there may be a greater need for education funding to prepare for the future and nurture talent,” and promised to thoroughly discuss the direction and alternatives for education finance, including holding a party-level forum.




* This article has been translated by AI.