"High School Economics Textbooks Lack Practical Economic Knowledge, Content Needs Improvement"

FKI's Evaluation Report on High School Economics Textbook Content and Writing Standards

Data provided by the Federation of Korean Industries

[Asia Economy Reporter Kim Heung-soon] A study has found that current high school economics textbooks do not adequately reflect economic issues closely related to daily life, such as finance, and also lack sufficient explanations about the roles of companies and entrepreneurs and economic systems during the economic growth process, indicating a need for supplementation.

The Federation of Korean Industries (FKI) evaluated the current high school economics textbooks and suggested improvement measures based on the report titled "Evaluation of High School Economics Textbook Content and Writing Standards," commissioned to Professor Yang Jun-mo of Yonsei University on the 1st.

High School Students Avoid Economic Education
Economic Education Effects on Youth Somewhat Insufficient

The report claimed that the number of students choosing economics as a subject in the College Scholastic Ability Test (CSAT) is significantly low, resulting in young people not receiving systematic economic education, and that the outcomes of economic education for the youth appear somewhat insufficient.

According to the FKI, only 5,076 candidates chose economics in last year's CSAT, which is 2.3% of the social studies test takers (218,154) and just 1.2% of the total CSAT candidates (421,034).

The FKI evaluated, "Among high school graduates, only a very small number studied economics, and excluding those who majored in economics-related departments at university, it can be confirmed that most of Korea's youth have never had systematic economic education."

According to a survey by the Bank of Korea, the financial literacy score of Korea's youth (ages 18-29) is 64.7, which is lower than that of middle-aged and older adults (69.2) and also below the national average across all generations (66.8). The FKI explained that this reflects the generally insufficient outcomes of economic education for Korea's youth.

Professor Yang stated, "As Korea's economy develops, the importance of economic education during adolescence is increasing," and argued, "It is necessary to actively consider measures to strengthen economic education during adolescence, such as designating economics as a mandatory subject in the CSAT or introducing a total credit system for economic education."

No Concrete Explanation of Financial Products, Retirement Pensions, Real Estate Loans, etc.

The report pointed out that although financial topics are introduced in high school economics textbooks to help improve youths' financial literacy, the explanations are abstract and lack practical concepts that aid daily life. Specifically, explanations on how each financial product helps are unclear, and debt management explanations for practical application remain insufficient.

It also analyzed that content related to real estate secured loans, such as Loan-to-Value ratio (LTV) and Debt Service Ratio (DSR), is missing, and explanations about social insurance are insufficient, thus not providing significant help in designing financial plans.

Therefore, the report argued that specific explanations about financial products, retirement pensions, voice phishing, and real estate loans should be added to high school economics textbooks so that students can acquire basic knowledge for sound financial life during adolescence.

Unclear Explanation of Economic Systems such as Market Economy and Planned Economy

The report also analyzed that most economics textbooks do not explain why the market economy system is essential, simply comparing economic systems and stating that each system has pros and cons, making the mixed economy the typical economic system, which is problematic.

It stated that explaining the existence of public enterprises, taxation, subsidies, or minimum wage implementation within a market economy as evidence that it is mixed with a planned economy because resource allocation and production decisions are basically made by price mechanisms is an excessive claim.

Accordingly, the report emphasized, "Textbooks should clearly explain that individual preferences, the meaning of division of labor, the necessity of markets, individual creativity, and economic development are core elements of the market economy, and that a planned economy is a system where government orders operate instead of price mechanisms in resource allocation."

Lack of Success Cases of Companies and Entrepreneurs to Inspire Youth Entrepreneurship

According to the report, most high school economics textbooks describe the economy as operating mechanically, which may cause misunderstandings about the dynamic economic growth of the Republic of Korea.

Positive and negative aspects of economic growth are described mechanically in equal measure, excluding stories about the accumulation of educational zeal and human capital, increased personal savings tendencies, and world-class companies created through the efforts of companies and entrepreneurs.

The report pointed out that such textbook content may spread negative perceptions of entrepreneurs and foster a tendency toward government policy omnipotence. It also added that high school economics textbooks should introduce the roles of private companies and entrepreneurs who contributed to Korea's economic growth through various cases.

Yoo Hwan-ik, head of the FKI Corporate Policy Office, argued, "High school economics textbooks should richly introduce success and failure cases of entrepreneurs to instill entrepreneurial spirit in the youth who will lead the Fourth Industrial Revolution era."

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