COVID-19 Leads to 11.8% Decrease in Private Education Expenses Last Year... Increase Only Among High School Students

Total Private Education Expenses 9.3 Trillion Won, Participation Rate 66.5%
High School Private Education Expenses Increased by 5.9% from Last Year
5-Fold Monthly Average Private Education Expense Difference by Income Level
Income-Based Private Education Participation Rate Gap Also Widened from Last Year

[Asia Economy Reporter Han Jinju] Private education expenses spent last year decreased compared to the previous year due to COVID-19. While private education expenses for elementary and middle school students decreased due to strengthened social distancing measures, only high school students urgently preparing for college entrance exams saw a slight increase. The gap in private education participation by income level is also gradually widening.

On the 9th, the Ministry of Education and Statistics Korea surveyed private education expenses in 2020 and found that the total private education expenses amounted to 9.3 trillion KRW, a decrease of 11.8% compared to the previous year. The participation rate in private education dropped by 7.9% to 66.5%, and the weekly participation time decreased by 1.2 hours to 5.3 hours.

During the first survey period (March to May), the decrease was more pronounced as academies were ordered to close due to COVID-19, while the decline somewhat eased during the second survey period (July to September). The total private education expenses during the first survey period were 4.2 trillion KRW, down 19.9% from the previous year, whereas during the second survey period, it was 5.1 trillion KRW, only a 3.9% decrease from the previous year. This survey was conducted on 80,000 elementary, middle, and high school students nationwide.

The average monthly private education expenses per student slightly increased only for high school students. The total private education expenses for all students were 289,000 KRW, a 10.1% decrease compared to the previous year. By school level, it was ▲220,000 KRW for elementary school ▲328,000 KRW for middle school ▲388,000 KRW for high school. Elementary school expenses decreased by 23.7%, middle school by 3.4%, but high school expenses increased by 5.9%.

Over the past five years, the average monthly private education expenses for high school students have steadily increased: ▲262,000 KRW in 2016 ▲285,000 KRW in 2017 ▲321,000 KRW in 2018 ▲365,000 KRW in 2019 ▲388,000 KRW in 2020. High school students rely on private education for supplementary school lessons and college entrance preparation, with participation rates highest in academies (40.5%), private tutoring (12.0%), group tutoring (6.6%), and internet and communication-based learning (5.5%). Despite the spread of COVID-19, participation rates in academies, group tutoring, and online lectures increased compared to the previous year.

When looking only at students participating in private education, private education expenses increased for both middle and high school students. Middle school students spent 492,000 KRW, a 2.5% (31,000 KRW) increase from last year, and high school students spent 640,000 KRW, a 5.2% (32,000 KRW) increase. Elementary school students spent 318,000 KRW, a 9.0% (31,000 KRW) decrease.

The gap in private education expenses by income level was similar to last year, but the gap in private education participation rates actually widened. Private education expenses by household income level generally decreased: ▲under 2 million KRW per month 99,000 KRW ▲2 to 3 million KRW 152,000 KRW ▲3 to 4 million KRW 196,000 KRW ▲4 to 5 million KRW 257,000 KRW ▲5 to 6 million KRW 310,000 KRW ▲6 to 7 million KRW 357,000 KRW ▲7 to 8 million KRW 425,000 KRW ▲over 8 million KRW 504,000 KRW.

Private education participation rates are proportional to income level, but the largest decrease in participation rates compared to the previous year was among households with monthly incomes between 3 and 5 million KRW. The participation rate for households earning 3 to 4 million KRW was 60.3%, and for those earning 4 to 5 million KRW, it decreased by 10.0% and 9.9%, respectively, compared to the previous year. Households with monthly incomes over 8 million KRW had a private education participation rate of 80.1%, which was 40.2% higher than households earning less than 2 million KRW, and the gap increased by 1.8 percentage points compared to last year.

The higher the academic performance, the higher the average monthly private education expenses per student and participation rates. Students in the top 10% spent 485,000 KRW, those in the 11-30% range spent 463,000 KRW, and students in the bottom 20% spent 270,000 KRW. Compared to the same period last year, these amounts increased by 1.8%, 7.3%, and 8.8%, respectively. Participation rates were 71.8%, 67.8%, and 49.1%, respectively.

Among elementary and middle school students, the average monthly private education expenses per student by desired high school type were highest for autonomous private high schools (419,000 KRW). Next were science high schools and gifted high schools at 390,000 KRW, foreign language and international high schools at 380,000 KRW, and general high schools at 231,000 KRW. Private education participation rates were also highest for autonomous private high schools (81.0%), followed by foreign language and international high schools at 77.8%, and science and gifted high schools at 77.4%.

With the expansion of remote classes due to COVID-19 and difficulties attending academy classes, expenses for purchasing EBS lecture materials also increased significantly. Last year, expenses for purchasing materials amounted to 93 billion KRW, a 36.0% increase. By school level, the increase was 19.4% for elementary schools, 12.9% for middle schools, and 35.1% for high schools.

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