The Gyeonggi Provincial Office of Education is shifting its system regarding unpaid statutory contributions by private schools from a 'penalty reduction' approach to an 'incentive policy.'
Statutory contributions for private schools refer to expenses that private school corporations must bear, such as pensions and health insurance premiums for faculty and staff. The Office of Education has been reducing private schools' operating expenses by up to 3% based on the rate of unpaid statutory contributions.
However, concerns have been raised through the Gyeonggi Provincial Council and others that uniformly cutting school operating expenses without considering the payment capacity of private schools could lead to a decline in the quality of education.
Accordingly, the Office of Education will eliminate the reduction of operating expenses for private schools that have unpaid statutory contributions and will provide operating expenses on par with public schools. Additionally, to actively encourage the payment of statutory contributions, it will promote incentive policies and expert consultations.
In particular, for corporations with excellent payment records of statutory contributions, the following will be provided: ▲ additional support for educational environment improvement projects ▲ expansion of the usage limit for school corporation operating expenses ▲ priority in selection for commendations.
Kim In-jong, Director of the Private School Support Division at the Office of Education, stated, "We will shift to an incentive-focused policy rather than penalties to encourage voluntary participation from private school corporations," and added, "Through analysis of statutory contribution payment data, we will continuously strive to ensure that private schools develop soundly based on accountability and transparency."
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