Educational grant increase trend to be maintained; remaining funds for higher, lifelong, and early childhood education

Minister of Planning and Budget Park Yun-gyu announced that the government will maintain the trend of a 6% annual increase in educational grants over the past 20 years. While the current system, which automatically allocates a portion of national taxes to local education offices, will be reformed, the long-term growth trend will be guaranteed.

Park stated on YouTube, "The trend of educational grants has been around 6% for the past 20 years. We will guarantee that trend." He added, "The remaining money will be used for higher education, lifelong learning, and early childhood education." Educational grants are automatically allocated based on a fixed percentage of national tax revenue, meaning they increase even as the number of school-aged children decreases if national finances grow.

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The trend of educational grants has been around 6% for the past 20 years. We will guarantee that trend. The remaining money will be used for higher education, lifelong learning, and early childhood education.

With significant additional tax revenue expected from semiconductors this year and next, there are growing calls to reform the current grant calculation method. However, specific reform plans have not been finalized due to opposition from the education sector. "As the school-aged population has rapidly decreased, educational grants have astronomically increased, leading to wasteful spending in some regions," Park explained. "We will create a new system reflecting the decrease in the school-aged population."

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As the school-aged population has rapidly decreased, educational grants have astronomically increased, leading to wasteful spending in some regions. We will create a new system reflecting the decrease in the school-aged population.

He emphasized, "The grant per student is about 13 million won annually, which is the highest in the OECD. We will never reduce the total amount of grants or the per-student grants." He further stated, "After that, the remaining funds will be invested in higher education. Lifelong learning, of course, and we must invest in early childhood education as well."

Regarding the newly established Future Response Fund, which will use large additional revenues from the semiconductor boom for investments in future industries, youth, regions, and education, Park described it as "substantial." The government plans to push for the necessary legal revisions for the fund's establishment through government legislation, aiming to submit the bill around late August or early September when the government budget proposal for the next year is submitted. The specific scale of the fund will be revealed when the next year's budget is announced.

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The grant per student is about 13 million won annually, which is the highest in the OECD. We will never reduce the total amount of grants or the per-student grants.