[Editorial] Education funds exceed 80 trillion won; cut automatic increases and invest in universities instead.

South Korea is initiating reforms to its education budget, which is projected to exceed 80 trillion won for the first time, largely due to a boom in semiconductor tax revenues. Despite a declining number of primary and secondary school students, the education budget is expected to increase by over 10 trillion won in a single year, necessitating a reform in how these funds are distributed and utilized.

The current education funding system, established in the 1970s to address overcrowded classrooms, automatically allocates 20.79% of national taxes to provincial education offices. This mechanism continues to channel vast sums into primary and secondary education, even as student numbers fall below 5 million. Consequently, South Korea's per-student public education spending for primary and secondary students reached $21,476 in 2022, the highest among OECD countries. In stark contrast, public spending for university and graduate students stands at only 68% of the OECD average.

With South Korea's potential growth rate declining and global university competition intensifying, the editorial argues that prioritizing K-12 education over higher education is increasingly unsustainable. While some propose detaching the education budget from national taxes and linking it to nominal growth rates to slow its expansion, the education sector opposes this, citing the high proportion of rigid expenses like salaries and operational costs, as well as the need for facility upgrades and future educational investments.

However, the article questions public support for such arguments, given instances of education offices providing cash incentives like driver's license acquisition fees and entrance application support to students. Furthermore, candidates for superintendent have campaigned on promises of cash handouts, such as matching funds and graduation grants. The per-student allocation for K-12 students, which was 14 million won last year, is expected to rise to approximately 16 million won this year. The editorial urges a legislative solution involving the government, political parties, and the education sector to dismantle the rigid allocation system and redirect funds towards higher education, early childhood education, and investments in future technologies like artificial intelligence.