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South Korean education grant and exam reform debate

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2026-08-16 21:05 UTC → 2026-08-17 09:55 UTC · added ~~removed~~

South Korea is debating a major overhaul of its local education grant system to address demographic decline. The Planning and Budget Office initially proposed replacing the current rule, which ties grants to 20.79% of domestic tax revenue, with a formula based on economic growth and the size of the school-age population. This change could potentially reduce the grant from approximately 100 trillion won to 81 trillion won. While the Ministry of Economy and Finance and the Ministry of Education reached a preliminary agreement to abolish the automatic tax linkage, negotiations have since stalled. Disagreements persist regarding the minimum guaranteed funding levels and the specific use of funds. The Ministry of Education seeks legal mandates to maintain funding comparable to the current system, while the Ministry of Economy and Finance argues such mandates would create a new automatic linkage. Additionally, disputes remain over whether semiconductor-related tax revenues should be used for higher education, lifelong learning, and early childhood programs, or if primary and secondary education must remain the priority. In a recent development, the scope of educational reform has expanded to include university entrance examinations. The National Education Commission and the Ministry of Education have announced plans to introduce descriptive and essay-type questions to the College Scholastic Ability Test (CSAT) and transition to an absolute evaluation grading system. A formal announcement regarding these long-term exam reforms is expected in March of next year following public deliberation. Meanwhile, the funding debate continues, with the Ministry of Economy and Finance aiming to redirect funds toward strategic investments while the Ministry of Education advocates for protecting primary and secondary education funding. Final decisions are expected to face scrutiny in the National Assembly as budget proposal deadlines approach.

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