[2024 Budget] Education Budget Decreases as Student Numbers Decline... Ministry of Education's 95.6 Trillion Won Budget for Next Year

6.2% Reduction, Impact of Decreased Student Numbers
Reduction in Local Education Finance Grants, Increase in Special Accounts
Increased Financial Support Projects for Glocal Universities

The Ministry of Education's budget for next year will be reduced by 6.2% compared to this year. The reduction amounts to 6.3725 trillion KRW compared to this year's budget, influenced by a decrease in the number of kindergarten and elementary·middle school students and a reduction in local education finance grants.

On the 29th, the Ministry of Education announced that it has prepared a budget of 95.6254 trillion KRW for next year. Among the reduced portions, the budget for early childhood and elementary·middle school education decreased the most, from 80.912 trillion KRW this year to 73.7406 trillion KRW next year (a decrease of 7.1714 trillion KRW). Along with this, the special account for early childhood education support will also decrease from 3.47 trillion KRW this year to 3.2106 trillion KRW next year, a reduction of about 259.4 billion KRW. Additionally, the support amount for early childhood education childcare fees will decrease from 3.47 trillion KRW this year to 3.2106 trillion KRW next year, a reduction of 259.4 billion KRW.

Regarding the decrease in the budget related to early childhood and elementary·middle school education, the Ministry of Education's Planning and Coordination Office explained, "The reduction is due to a decrease in the number of children receiving support as the number of enrolled children has declined." According to the Basic Education Statistics released last year by the Ministry of Education and the Korea Educational Development Institute, the total number of kindergarten, elementary, and middle school students decreased by 1.3% compared to 2021.

The reduction in local education finance grants also affected the budget decrease. Previously, the government had initiated discussions on reforming education grants. Reflecting the decline in student numbers, part of the education grants used for elementary and middle school education will be allocated to the special account for higher and lifelong education support. In response, the superintendents of education in various provinces expressed opposition.

In fact, in this budget proposal, local education finance grants will decrease from 75.7607 trillion KRW this year to 68.8859 trillion KRW next year, a reduction of 6.8748 trillion KRW (9.1%). On the other hand, the special account for higher and lifelong education support will increase from 9.3773 trillion KRW this year to 14.8567 trillion KRW next year, an increase of 5.4794 trillion KRW (58.4%).

The Ministry of Education plans to respond to the decrease in tax revenue by utilizing the accumulated financial stabilization funds of each education office. The Planning and Coordination Office stated, "We have created about 2.1 billion KRW in financial stabilization funds to prepare for (budget) volatility," and added, "We need to consult with each provincial education office to decide how much of the fund to use."

The Ministry of Education is focusing on expanding general financial support projects to promote university innovation, including Glocal Universities. The budget will increase by about 312.1 billion KRW from 2.0757 trillion KRW this year to 2.3878 trillion KRW next year. Among these, the university and junior college innovation support projects will increase by 10% compared to this year, and the national university development projects and support projects for revitalizing local universities and local junior colleges will increase by 25%.

As a preparatory step for introducing the Regional Innovation-centered University Support System (RISE) from 2025, a budget of 1.2 trillion KRW has been allocated for financial support projects.

Additionally, 181.7 billion KRW will be increased to support talent development in advanced fields such as semiconductors. To reduce the financial burden on low-income university students, a total of 5.0484 trillion KRW has been allocated, including national scholarship support (4.6877 trillion KRW) and low-interest student loan support (360.7 billion KRW). This is an increase of about 160.3 billion KRW compared to this year.

Support for educational benefits for low-income elementary, middle, and high school students will increase by 3 billion KRW from 157.3 billion KRW this year to 160.3 billion KRW next year. Support for free high school education will also increase by 41 billion KRW from 902.8 billion KRW this year to 943.8 billion KRW next year. Lifelong education voucher support is allocated 26.2 billion KRW (an increase of 5.6 billion KRW), edutech education activation 10.3 billion KRW (an increase of 8.5 billion KRW), and overseas Korean language promotion 21.1 billion KRW (an increase of 2.4 billion KRW).