Tuition Fees, 3rd Most Expensive University 'Yonsei University', Which is 1st? [2023 Asia Newspick]③

Editor's NoteIn 2023, Asia Economy reported numerous news stories. Among them, we present the articles and their backstories that garnered the most empathy and reactions from readers online. As you review the popular articles from the third quarter, we hope you take time to reflect on this past year and prepare for the new one.

1. Yonsei University Ranks 3rd Among Most Expensive Tuition Fees... Who's No.1? (Reporter Han Yeju)

The Ministry of Education announced that the legal cap on university tuition fee increases for next year is 5.64%. Parents with college-aged children are sighing deeply. In response to ongoing criticism that university tuition fees are too expensive, the Lee Myung-bak administration introduced the so-called half-price tuition policy in 2011. The core of the policy was that the ceiling for tuition fee increases would be 1.5 times the inflation rate over three years.

Thanks to a prolonged period of low inflation, tuition fees that had been soaring annually calmed down for a while. For example, the tuition increase limit in 2022 was only 1.65%. However, due to a sharp rise in inflation over the past three years, next year's figure has surged back above 5%. So, what were the tuition fees at each university this year? One of Asia Economy's popular articles this year investigated the tuition fees of major universities.

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Tuition Fees, 3rd Most Expensive University 'Yonsei University', Which is 1st? [2023 Asia Newspick]③

Photo of Girls' Generation's Yoona at the time of her graduation from Dongguk University. The photo and content are unrelated. Photo by Yonhap News

In South Korea, which boasts exceptional educational enthusiasm and high university enrollment rates, tuition fee issues are a heated social topic every year. Especially as university tuition fees, which had been frozen for 14 years since 2010, recently showed signs of increase, interest has grown. We compared whether tuition fees increased this year compared to last year and which universities have the highest tuition fees.

According to the '2023 Tuition Fee Status' recently released by the University Information Disclosure Center on the 14th, the university with the highest tuition fee is Eulji University (10,413,966 KRW). Located in Daejeon, this university is famous for its specialization in health and medical fields. It has consistently ranked first in tuition fees since 2021. Last year, Eulji University's average annual tuition was 10,387,666 KRW.

The Catholic University’s 2nd Campus, a Catholic-affiliated private university located in Seocho-gu, Seoul, ranks second among four-year universities in tuition fees. The overall average annual tuition was 9,297,662 KRW, with natural sciences tuition at 8,506,363 KRW. Last year, it was 9,263,984 KRW.

Third place goes to Yonsei University, with an average annual tuition of 9,203,802 KRW. Last year, it was 9,152,134 KRW. Yonsei's average tuition appears to have been raised by not only its medical school but also the Underwood International College (UIC) and the Global Talent Department.

Fourth and fifth places were taken by Shinhan University and Myongji University. Shinhan University’s average annual tuition was 9,163,632 KRW, and Myongji University’s was 9,157,983 KRW. Last year, they were 9,120,214 KRW and 9,117,673 KRW, respectively.

Among national universities, Seoul National University had the highest tuition. Its average annual tuition was 6,011,719 KRW, similar to last year's 6,011,785 KRW. Second place was Seoul National University of Science and Technology (5,465,375 KRW), third Incheon National University (4,632,119 KRW), fourth Kyungpook National University (4,499,842 KRW), and fifth Hanbat National University (4,471,033 KRW).

While some universities require tuition fees of several million won, there are universities where students pay nothing. Gwangju Catholic University, located in Naju, Jeollanam-do, has zero tuition fees and no admission fees. This university, composed solely of theology departments, relies on support from three dioceses and believers. Korea National Open University’s average annual tuition is 760,969 KRW, Central Buddhist Sangha University 1.76 million KRW, Youngsan Seminary 2 million KRW, and Gwangju Institute of Science and Technology 2.06 million KRW, ranking among the five cheapest schools.

University finances are becoming increasingly difficult. Even if the government provides support by freezing or lowering tuition fees, the financial conditions are insufficient. Especially for private universities, tuition fees account for about half of total operating income. In fact, the Korea Council for University Education (KCUE) reported in 2021 that the total operating deficit of private universities was 155.5 billion KRW. At that time, KCUE analyzed, "Due to 14 years of tuition freezes and declining student numbers, total tuition and fee income, the main revenue source for private universities, has been continuously decreasing, while operating costs have been rising, resulting in chronic operating deficits since 2017."

This year's 'legal cap on tuition fee increases' was 4.05%, significantly higher than usual due to high inflation. The cap is expected to rise further for the 2024 academic year, leading to expectations that more universities will decide to raise tuition fees instead of maintaining the freeze. However, the government plans to maintain the 'tuition freeze policy' through continued national scholarship support.

Some argue that while various support measures are important, the government and university corporations should first reform the current university financial structure, which heavily depends on tuition fees. In February, the National University Student Council Network, composed of 21 university student councils nationwide, stated, "Tuition income accounts for more than 50% of university finances, while government support is only 17%, and university corporation contributions are just 5%. Tuition increases merely shift the 'financial responsibility' of universities onto students and parents," urging, "The government should present policies guaranteeing university education, and corporations must take financial responsibility to overhaul the distorted financial structure."

2. South Korea Tops World in Luxury Goods Purchases... Luxury Brands Bow to Changed Status (Reporter Lee Seohui)

This year, despite a prolonged high inflation environment severely dampening consumer sentiment, Koreans' love for luxury goods remained unstoppable. Analysis showed that Koreans spent the most money on luxury goods worldwide. Last year, Koreans' luxury purchases reached a staggering $16.8 billion (about 20.9 trillion KRW). The luxury industry has begun recognizing Korea as a major player in the luxury market alongside the U.S. and China.

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Model Jung Ho-yeon, who appeared in the Netflix drama "Squid Game," is walking the runway at Louis Vuitton's "2023 Pre-Fall Fashion Show." Photo by Louis Vuitton

The status of the Korean market in the luxury industry is changing. As domestic luxury consumption reaches world-class levels and Korea emerges as a 'big spender' in luxury, the industry is expanding various marketing activities from fashion shows to pop-up exhibitions.

On the 15th, U.S. economic media CNBC cited Morgan Stanley analysis reporting that last year, Koreans spent $16.8 billion (about 20.9 trillion KRW) on luxury goods, averaging $325 (about 400,000 KRW) per person, ranking first worldwide. The U.S. and China’s per capita luxury spending were $280 (about 350,000 KRW) and $55 (about 70,000 KRW), respectively, slightly lower than Korea. Cartier, a representative luxury jewelry brand, recorded double-digit growth in sales only in the Korean market last year, indicating unprecedented rapid expansion of the domestic luxury market.

Luxury brands focusing on the Korean market are showing various moves. Not only are major domestic celebrities serving as ambassadors for multiple luxury brands, but large-scale fashion shows and pop-up exhibitions, previously unattempted events, are being held. For example, Louis Vuitton held the '2023 Prefall Fashion Show' at Hangang Jamsugyo Bridge in April, attracting over 1,600 spectators. Subsequently, the Prefall collection presale was successfully held for a month at 'East Dosan' in Gangnam-gu, Seoul. This was Louis Vuitton's second domestic fashion show since 2019 and the first-ever Prefall fashion show event.

Additionally, Louis Vuitton’s travel book 'Fashion Eye' Seoul edition was recently published, drawing attention. Louis Vuitton, which has made travel a core brand philosophy since its inception, has been steadily publishing three types of travel books?'City Guide,' 'Travel Book,' and 'Fashion Eye'?since 1998. While Seoul had been introduced in the City Guide and Travel Book before, this is the first time the Fashion Eye Seoul edition has been published. Seoul became the sixth city to appear in all three Louis Vuitton travel book series.

Gucci also held the '2024 Cruise Fashion Show' in May around Geunjeongjeon Hall at Gyeongbokgung Palace, Seoul. This was Gucci's first fashion show in Korea in 25 years since opening its first domestic store in 1998. In April last year, French luxury brand Dior held a fashion show at Ewha Womans University Seoul campus. Dior's domestic fashion show was the first in 15 years since the 'Dior 60th Anniversary Fashion Show' in 2007.

An industry insider said, "Until before COVID-19, it was rare for the luxury industry to recognize Korea as a major country, but as domestic luxury consumption reached world-class levels, almost all brands are paying more attention to Korea than before," adding, "The reason various luxury brands are conducting diverse activities domestically is because Korea's status in the luxury market has risen."

3. "No Time to See Grandchildren"... Sharp Increase in Earning Women in Their 60s (Reporter Choi Seungwoo)

As the aging society accelerates, economic activity among the elderly is also increasing. Particularly, statistics showing a rise in economic participation among older women caught netizens' attention. Among women in their 60s, more are earning money than engaged in childcare or housework. While positive from an economic revitalization perspective, some reactions expressed bitterness about the reality of having to work even at an advanced age for livelihood.

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An elderly job seeker looking at job information. / Photo by Yonhap News

With increasing female economic participation and more elderly working, the number of women in their 60s earning money has surpassed those engaged in childcare or housework.

According to the Statistics Korea National Statistical Portal (KOSIS) and the Economically Active Population Survey microdata on the 16th, the number of employed women aged 60-69 last month was 1,917,000, an increase of 145,000 (8.2%) compared to the same month last year.

Among the non-economically active population, 33,000 women in their 60s were engaged in childcare for preschool children, and 1,677,000 were doing housework. The number of employed women in their 60s exceeded those doing childcare or housework (1,710,000). The number of employed women in their 60s surpassed those engaged in childcare or housework starting June last year.

Compared to last year, the number of women in their 60s doing childcare increased by 3,000, while those doing housework decreased by 17,000. This suggests that more women in their 60s are working for income instead of housework.

This phenomenon aligns with the trend of increased economic participation among women and the elderly. Last month, the economic participation rate of those aged 60 and above was 48.2%, the highest for June since statistics began in June 1999. The employment rate also hit a record high of 47.1%.

According to last year's supplementary survey on the economically active population, the proportion of elderly (aged 55-79) wishing to work in the future was 68.5%, up 0.4 percentage points from a year earlier, indicating a continuous increase in elderly wanting to work.

With more dual-income households, demand for care services has increased, affecting sectors like health and social welfare services, where many women in their 60s work.

Among employed women in their 60s last month, 375,000 worked in health and social welfare services, accounting for the largest share (20%) of total employment. Employment in these sectors increased by 126,000 compared to a year ago, with 37,000 of them being women in their 60s.

As economic participation among elderly women rises, overall female employment is naturally increasing. Last month, the female employment rate was 55.1%, the highest for June on record. The number of employed women increased by 332,000 compared to a year ago, with 145,000 of them in their 60s, surpassing other age groups such as 30s (96,000) and 50s (74,000).

As of 2022, South Korea's population aged 65 and over exceeded 9 million, accounting for 17.5% of the total population. By 2025, this proportion is expected to surpass 20%, entering a full-fledged super-aged society.

Experts advise proactively preparing for the so-called 'Eldernomics,' referring to the elderly economy. They suggest viewing the elderly not as the opposite of youth but as additional labor and consumer groups who can work longer, and preparing accordingly.

For example, Germany's elderly employment rate is the third highest among European Union (EU) countries after Sweden and Denmark. According to Germany's Federal Ministry of Labour and Social Affairs (BMAS), the employment rate of those aged 55-64 was 72% in 2021, up 10 percentage points from 2012. This is 12 percentage points higher than the EU average elderly employment rate of 60% during the same period.

Meanwhile, the proportion of non-regular workers among elderly employees is low. According to Germany's Federal Statistical Office, as of last year, the number of standard employees aged 55-65 was 6,539,000, while atypical workers including non-regulars numbered 1,775,000. This is the result of various policy supports to promote elderly labor market participation.