Politics · South Korea · 3 hrs ago
South Korean Education Chiefs Propose Sharing Grant Increases With State
South Korea’s provincial education chiefs proposed a compromise over how the state funds local schools.
They want to keep the current system, which allocates 20.79% of domestic tax revenue to education grants.
If grants rise by more than 5% in a year, they propose sending two-thirds of the increase above that threshold to a national fund for future priorities.
If grants fall by more than 5%, they want the state to cover one-third of the drop beyond that threshold.
The chiefs estimate their plan would provide about 44.5 trillion won for national priorities from 2027 to 2030 while keeping school funding above their stated minimum needs.
The government wants to replace the tax-linked formula with one based on economic growth and changes in the school-age population, and has submitted a bill to parliament.
The education chiefs say changing the formula could make school funding less stable, and their proposal offers a way to share funds while protecting education budgets.
South Korean education chiefs proposed sharing part of large increases in local education grants with the state while keeping the current tax-linked funding system.
Under the proposal, if grants rise by more than 5% from the previous year, two-thirds of the increase above 5% would go to state future-response funding.
If grants fall by more than 5%, the state would cover one-third of the decline beyond that threshold.
The chiefs said the plan could generate about 44.5 trillion won for state future-response funding from 2027 to 2030.
The proposal comes as the government seeks to replace the current system for calculating the grants.
- Who
- The Korea Educational Superintendents Association and South Korea’s provincial and metropolitan education chiefs.
- What
- They proposed retaining the current grant formula and sharing part of unusually large increases with the state.
- When
- The association announced the proposal on November 4, 2026.
- Where
- At a news conference at the National Assembly Communication Hall in Seoul.
- Why
- The chiefs said the plan would help fund state priorities while protecting the money schools need.
Education chiefs
South Korean government
Funding formula
Education chiefs
Keep the system that allocates 20.79% of domestic tax revenue to local education grants.
South Korean government
Replace the tax-linked formula with one that reflects economic growth and changes in the school-age population.
Use of grant increases
Education chiefs
Share two-thirds of any increase above 5% with the state when grants rise by more than 5%.
South Korean government
Direct the difference between the current and proposed formulas to a future-response fund for areas including early childhood education and higher education.
Reason for the approach
Education chiefs
The chiefs said stable education funding is needed and that schools’ required funding should be protected.
South Korean government
The government’s proposed fund is intended to support future investment, including education and talent development.
Education chiefs held a news conference in Seoul to state their position on reforming local education grants.
The Korea Educational Superintendents Association announced its proposal to share part of large grant increases with the state.
- Current grant formula
- 20.79% of domestic tax revenue
- Increase-sharing threshold
- Grant growth above 5% from the previous year
- Share for state when grants rise
- Two-thirds of the increase above 5%
- State support when grants fall
- One-third of the decline beyond a 5% decrease
- Projected state future-response funding
- About 44.5 trillion won from 2027 to 2030
- Projected 2027 grants
- About 89.6 trillion won
What people are saying
We sought to find a way to cooperate with the state’s future investment while protecting the funding schools need.
When tax revenue increases sharply, the education sector will also contribute to preparing for the state’s future.