Universities to Receive 720 Million Won Each for Tuition Refunds... Youth Support Budget Included in Supplementary Appropriation (Comprehensive)

A Total of 271.8 Billion KRW Invested in the Ministry of Education's Refund Support Project

[Image source=Yonhap News]

[Asia Economy reporters Jang Sehee and Wondara] The government is expected to provide up to 723 million KRW in financial support to universities that refund 10% of tuition fees. As public taxes are used for university tuition refunds, the controversy is expected to intensify. The Democratic Party of Korea plans to add a budget for youth support to the third supplementary budget bill currently under review in the National Assembly.

According to data submitted by the Ministry of Education to Rep. Kim Young-sik of the United Future Party on the 2nd, the Ministry of Education allocated a total of 271.8 billion KRW for the tuition refund support project. During the initial supplementary budget planning process, 76.7 billion KRW, which had been cut from the University Innovation Support Project and the Junior College Innovation Support Project budgets, was restored, and 195.1 billion KRW was newly allocated. Specifically, the Ministry of Education proposed supporting general universities (205 schools) with 723 million KRW per school and junior colleges (149 schools) with 315 million KRW per school.

Initially, the Ministry of Economy and Finance, the financial authority, opposed support for universities due to tuition refunds, but the National Assembly's Education Committee passed the related supplementary budget of 271.8 billion KRW on the 29th of last month. This amount was calculated assuming a 10% refund per school and about 400,000 KRW per student.

However, if the Ministry of Economy and Finance maintains its opposition to direct cash support, the project format may change or the budget may be reduced. As demands for tuition refunds grow among university students, the ruling Democratic Party is pressuring the Ministry of Economy and Finance during the supplementary budget review process. An anonymous official from the Ministry of Economy and Finance said, "We adjusted the budget cuts yesterday, and today we are discussing the increase. There is a possibility of some cuts in the Budget and Accounts Committee."

Kim Tae-nyeon, floor leader of the Democratic Party of Korea, said at the policy coordination meeting that day, "Although the 20s generation was hit hard by the novel coronavirus disease (COVID-19), we will add a youth-tailored support budget for this relatively neglected group to the third supplementary budget." He added, "The number of employed youth has been declining since March, and the delinquency on youth credit loans has also increased. We will reflect a budget to protect the lives of young people." Additionally, he announced plans to add budgets for youth housing stability support, such as expanding rental housing near subway stations and supplying additional multi-family rental housing; youth employment support in small and medium-sized enterprises; and youth startup support in non-face-to-face business sectors. He did not specify the exact budget size.

Meanwhile, concerns have been raised during the supplementary budget review process that habitual budget increases could worsen national fiscal soundness. Professor Sung Tae-yoon of Yonsei University's Department of Economics stated, "Total fiscal goals such as national debt and total expenditure should be set through fiscal rules. Like conducting preliminary feasibility studies for projects exceeding 50 billion KRW, budget projects above a certain scale need thorough review."

Professor Kim Tae-gi of Dankook University's Department of Economics said, "It seems the National Assembly lacks the will to be accountable for fiscal matters. It even makes me think that the budget is being allocated to appease youth in connection with the Incheon International Airport Corporation incident." He added, "There should be sufficient prior consultation with the government when increasing the budget."

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