Reform Plan for Local Education Finance Grants Reaches National Assembly After 55 Years; Metropolitan and Provincial Superintendents Call for Reconsideration

[Financial News] As opposition grows in the education community over the proposed reform of the local education finance grant system, which has remained in place for 55 years since its introduction in 1971, a delegation of metropolitan and provincial superintendents of education visited the National Assembly and called for a thorough review and reconsideration of the government’s amendment. They expressed concern that revising the statutory grant formula solely to reflect the decline in the school-age population could weaken future investment in education and lead to a real reduction in education finances.
Nine metropolitan and provincial superintendents of education affiliated with the Korean Council of Superintendents of Education met on the 9th with Kim Hee-jung, chair of the National Assembly Education Committee, and Lee In-sun, its secretary, among others. They requested that the National Assembly closely review the Ministry of Education’s proposed “Partial Amendment to the Local Education Finance Grant Act” and the 2027 budget proposal. This was their second visit, following a visit to the National Assembly by six superintendent representatives on the 7th.
The superintendents emphasized that the design and overall rationale of the reform proposed by the government must be reexamined. They identified several key issues: the lack of objective and empirical grounds for a formula reflecting 35% of the decline rate in the school-age population; the underestimation of growing education needs, including AI and digital education and the improvement of aging facilities; concerns that rising prices and labor costs could reduce education finances in real terms; and controversy over retroactively applying the amended rules to settlement amounts for 2026 and earlier years.
The superintendents also said that, based on the review opinion of the National Assembly Research Service (NARS), the National Assembly must thoroughly determine whether the government has sufficient grounds to change the current system, which is linked to 20.79% of domestic tax revenue. It should also examine whether measures have been prepared to address medium- and long-term expenditure needs and educational disparities between regions.
Geun-sik Chung, chairman of the Korean Council of Superintendents of Education, emphasized, "A bill that changes the foundation of local education finances, which has been maintained for 55 years, must never be passed without sufficient discussion simply because it is designated as a budget-linked bill." He added, "I hope the National Assembly will fulfill its final responsibility by thoroughly examining the grounds and impact of the institutional reform, as well as the voices of educators in the field, rather than serving as a channel for passing the government’s proposal as is."
Meanwhile, during their visit to the National Assembly, the metropolitan and provincial superintendents also visited the tent protest site in front of the building and expressed their intention to respond jointly with “Emergency Action,” a coalition of education and civic groups. The proposed reform of local education finance grants is expected to become a key issue in the regular session’s budget and bill reviews after going through a public hearing of the National Assembly Education Committee scheduled for the 16th.


[email protected] Man-gi Kim Reporter