The Korean Council of Private University Presidents recently expressed concerns over the ongoing discussions regarding the reform of local education financial grants, warning against conflicts between primary, secondary, and higher education. They called for a balanced development of national education finance, particularly highlighting the crisis faced by private universities due to declining school-age populations and prolonged tuition freezes.
On July 15, the council, led by President Jeon Min-hyeon, issued a statement urging the government and the National Assembly to expand financial support for higher education.
The statement emphasized that the current discussions should not only focus on improving the efficiency of education finance in light of declining school-age populations but also ensure the sustainability of the entire education system in South Korea.
The council cautioned against viewing the reform of education grants as a 'budget competition' or 'zero-sum conflict' between primary, secondary, and higher education. They stated, "Primary and secondary education is foundational national education, while higher education is essential for nurturing future talent that drives national competitiveness. These two areas are part of an integrated education system and must grow together."
However, the council also voiced criticism regarding the current state of national investment in higher education. They noted that private universities, which account for 80% of higher education, are facing significant challenges due to long-term tuition freezes and declining school-age populations, which have severely weakened their educational and research foundations.
The statement pointed out that while South Korea's public spending on primary and secondary education is among the highest in the OECD (155.1% for elementary and 179.2% for secondary), spending on higher education remains at a mere 68.5%, placing it at the bottom of the rankings. Only South Korea and Greece have lower public spending on higher education compared to primary and secondary education among the 38 OECD countries.
In response, the council outlined three key demands to the government: 1) Proceed with careful discussions on grant reform under the principle of balanced operation and development of national education finance; 2) Expand national investment in higher education by utilizing various resources, including increases in grants due to surplus tax revenue; 3) Establish a stable and institutional legal framework, tentatively named the 'Higher Education Financial Grant Law,' to nurture talent in strategic industries such as AI, semiconductors, and biotechnology.
The council reiterated the importance of the recent remarks by President Lee Jae-myung during the '2026 National Financial Strategy Meeting,' which highlighted the strategic investment direction for large surplus tax revenues resulting from the semiconductor boom, stating that now is the 'golden time' to drive innovation in higher education.
Jeon Min-hyeon, president of the council, stated, "The future competitiveness of South Korea can only be realized when primary, secondary, and higher education grow together. We hope this discussion will serve as a new starting point for innovation in education finance and the nurturing of future talent, rather than a source of conflict over education finance."
On July 15, the council, led by President Jeon Min-hyeon, issued a statement urging the government and the National Assembly to expand financial support for higher education.
The statement emphasized that the current discussions should not only focus on improving the efficiency of education finance in light of declining school-age populations but also ensure the sustainability of the entire education system in South Korea.
The council cautioned against viewing the reform of education grants as a 'budget competition' or 'zero-sum conflict' between primary, secondary, and higher education. They stated, "Primary and secondary education is foundational national education, while higher education is essential for nurturing future talent that drives national competitiveness. These two areas are part of an integrated education system and must grow together."
However, the council also voiced criticism regarding the current state of national investment in higher education. They noted that private universities, which account for 80% of higher education, are facing significant challenges due to long-term tuition freezes and declining school-age populations, which have severely weakened their educational and research foundations.
The statement pointed out that while South Korea's public spending on primary and secondary education is among the highest in the OECD (155.1% for elementary and 179.2% for secondary), spending on higher education remains at a mere 68.5%, placing it at the bottom of the rankings. Only South Korea and Greece have lower public spending on higher education compared to primary and secondary education among the 38 OECD countries.
In response, the council outlined three key demands to the government: 1) Proceed with careful discussions on grant reform under the principle of balanced operation and development of national education finance; 2) Expand national investment in higher education by utilizing various resources, including increases in grants due to surplus tax revenue; 3) Establish a stable and institutional legal framework, tentatively named the 'Higher Education Financial Grant Law,' to nurture talent in strategic industries such as AI, semiconductors, and biotechnology.
The council reiterated the importance of the recent remarks by President Lee Jae-myung during the '2026 National Financial Strategy Meeting,' which highlighted the strategic investment direction for large surplus tax revenues resulting from the semiconductor boom, stating that now is the 'golden time' to drive innovation in higher education.
Jeon Min-hyeon, president of the council, stated, "The future competitiveness of South Korea can only be realized when primary, secondary, and higher education grow together. We hope this discussion will serve as a new starting point for innovation in education finance and the nurturing of future talent, rather than a source of conflict over education finance."
* This article has been translated by AI.
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