"1.8 Trillion Won Budget Shock"... Jeonnam Gwangju Office of Education Declares All-Out War Over Grant Reform

Backlash Over Abolishing Link to Domestic Tax Revenues: "Government Monopolizes Tax Windfall"


"Fewer Students, Less Budget?" Criticism Over Lack of Transparency


Full-Scale Legislative Battle in National Assembly With Superintendents’ Alliance

After the government unveiled a reform plan to abolish the system linking local education financial grants to domestic tax revenues—a policy maintained for 54 years—the Jeonnam Gwangju Integrated Metropolitan Office of Education has strongly objected, calling it "a unilateral act that absorbs the fruits of a tax revenue boom into national finances and undermines the foundation of education funding."

The Office voiced particular concern that applying the new calculation method could result in a financial loss of 1.8 trillion won as early as next year. As such, it plans to mount a full-scale effort to block the plan during the parliamentary legislative process.

Jeonnam Gwangju Consolidated Special City Office of Education

On August 21, immediately after the government (Ministry of Planning and Budget·Ministry of Education) announced its reform plan for local education financial grants, the Jeonnam Gwangju Integrated Metropolitan Office of Education released a statement urging that the current system linking the grants to domestic tax revenues at a rate of 20.79% be maintained as is.

The government’s reform plan, officially announced on the same day, will completely abolish the system established in 1972 that ties the grants to domestic tax revenues. Instead, from next year the amount of grants will be calculated based on the average nominal growth rate of the past three years, incorporating 35% of the change rate in the school-age population.

In response, the Office pointed out, "Local education financial grants are not merely a budget item; they are a fundamental fiscal safeguard ensuring the constitutional right to education and addressing regional disparities in educational opportunities. We cannot accept undermining the foundation of educational finances simply due to a declining school-age population."

The new calculation method, the Office argued, fails to reflect real fiscal needs on the ground, such as the demand for nurturing future talent in areas like AI and the annual increase in personnel costs.

The greatest problem, according to the Office, is the severe financial loss. With the semiconductor market outlook set to boost tax revenues next year, maintaining the current system would mean that grants to the Jeonnam Gwangju Office of Education would increase by approximately 2 trillion won. In contrast, under the government’s new plan, the increase would be limited to just 200 billion won, effectively vaporizing 1.8 trillion won in budget.

An official from the Office noted, "Contrary to the government’s claim that the total national grants are steadily increasing, in reality, even in years of rising tax revenues, the perceived gains at local education offices shrink to only a tenth of potential increases."

Further criticism was raised about both the content and the process of promoting the reform. The Office pointed out that the government disregarded the reality that a decrease in student numbers does not immediately translate to lower school operating expenses. In addition, since the formula only compensates for increased personnel costs, it leaves no room for new educational investment.

The Office also highlighted that the future response fund created under the plan does not explicitly earmark its education and talent development account for early childhood, elementary, or secondary education—the backbone of the system. It warned that educational disparities in regions with especially rapid declines in school-age populations will widen even further.

Most critically, the Office argued that substantive consultation with the directly affected local superintendents and feedback from 354 education-related organizations was ignored, as the plan was pushed forward solely through inter-ministerial discussions. The Office stressed that "it is difficult to recognize the procedural legitimacy" of the government’s actions.

The Jeonnam Gwangju Integrated Metropolitan Office of Education has affirmed its position that, since the reform requires legal amendment, it will focus all efforts on blocking the measure during the National Assembly’s legislative deliberation. The Office stated, "We cannot stand by and let a reform plan, advanced only through government ministry coordination, pass through the National Assembly unchallenged. Together with the Council of Superintendents of Education, we will submit a formal opposition to the Assembly, and—by working closely with local legislators and the Assembly Education Committee—ensure that the current link to domestic tax revenues remains intact through the legislative stage."

The Office also called on the government to: ▲ maintain the current 20.79% link to domestic tax revenues; ▲ establish an official consultative body including all local superintendents; and ▲ explicitly designate the future response fund for investment in early childhood, elementary, and secondary education.

This content was produced with the assistance of AI translation services.