75.7 trillion won baseline calculation questioned

Superintendents call for earmarking future fund for K-12 education

Kim Min-seok pledges forum on education finance direction

Superintendents from across the country hold a press conference at the National Assembly's communication center in Yeongdeungpo-gu, Seoul, announcing the Korea Superintendents Association's position on the proposed reform of local education finance grants.
Superintendents from across the country hold a press conference at the National Assembly's communication center in Yeongdeungpo-gu, Seoul, announcing the Korea Superintendents Association's position on the proposed reform of local education finance grants.

Superintendents from across the country met with Democratic Party of Korea leader Kim Min-seok and urged him to call for a review of the government's proposed overhaul of local education finance.

The superintendents argued that even as student enrollment declines, new spending demands — including AI education, foundational learning support, childcare and special education — are growing, and that shrinking K-12 education budgets on the grounds of a falling school-age population would be a mistake.

Seven superintendents, including Kwon Sun-ki, chair of the association's special committee on local education finance, met with Kim on Thursday to convey the education sector's concerns about the proposed reform and the future response fund, and to call for improvements to the system, according to the Korea Superintendents Association.

Kim said education funding may need to increase even as student numbers fall, in order to prepare for the future and develop talent, and pledged to hold a party-level forum on the issue.

The government's proposed reform would replace the current system — which automatically allocates 20.79 percent of domestic tax revenue to local education finance grants — with a formula that calculates grant amounts based on the previous year's grants adjusted for the average nominal growth rate over the past three years and changes in the school-age population. Under the proposal, demographic shifts would account for 35 percent of the formula, and the difference in funding between the existing and new methods would be channeled into an education and talent development account within a new future response fund.

The superintendents questioned the basis for weighting the school-age population change at 35 percent in the new formula, and challenged the rationale behind setting the baseline amount at approximately 75.69 trillion won ($55.7 billion). They also called for the government to publish and compare long-term fiscal projections under both the current 20.79 percent linkage system and the proposed new formula.

The superintendents argued that a decline in student numbers does not automatically translate into lower education spending needs. They said the basic costs of maintaining schools and classrooms arise regardless of enrollment, and that additional funding is needed for building AI and digital learning environments, guaranteeing foundational academic skills, closing educational gaps, expanding childcare, supporting special education and upgrading aging school facilities.

The superintendents also raised concerns that the newly created future response fund could destabilize funding available for K-12 education. They proposed that local governments be required to publicly disclose their track record in transferring both statutory and non-statutory funds to education offices.

Citing cases in some regions where statutory transfers have been delayed or non-statutory contributions reduced, the superintendents called for regular public disclosure of unpaid or delayed amounts by region, as well as the scale of support for free school meals and education cooperation projects.

The superintendents also asked that a consultative body be established to allow the education sector to participate in decisions on the source, size, allocation and use of the future response fund. Kim said he would "fully discuss the direction and alternatives for education finance."


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