Mayor Lee Jae-jun Proposes 'Full Deferred University Tuition Payment' to Ruling and Opposition Presidential Primary Candidates

Lee Jae-jun, Mayor of Goyang [Provided by Goyang City]

[Asia Economy Reporter La Young-cheol] On the 1st, Lee Jae-jun, mayor of Goyang City, proposed the 'Complete Deferred Payment System for University Tuition' to presidential primary candidates from both ruling and opposition parties.

According to Mayor Lee, the 'Complete Deferred Payment System for University Tuition' is a system currently implemented in countries like New Zealand, where students can focus on their studies without financial burden during enrollment, and tuition fees are paid in installments starting from the point when their annual income after employment reaches a certain level.

At first glance, it may seem similar to the 'Income Contingent Student Loan' currently operated by the Korea Student Aid Foundation, but that is still a loan with interest, and the longer the job search period, the greater the interest burden. Additionally, loans may not be available depending on parental income.

However, the 'Complete Deferred Payment System for Tuition' differs in that it is a perfect deferred payment method for all university students, meaning it is an 'interest-free loan.' The government pre-pays tuition fees in cooperation with financial institutions and subsidizes the interest.

Along with the deferred payment system, Mayor Lee additionally proposed ▲supporting 50% of actual job preparation training allowances (up to 1 million KRW per person) ▲flexible deferment and exemption of repayment depending on income level and conditions after employment ▲considering a method where companies share a certain portion of payment responsibility similar to employment insurance.

The intention is to view tuition not as an individual's 'loan' but as a 'shared responsibility' of society, which will use and benefit from the future workforce.

Mayor Lee pointed out, "Although higher education has become common enough that 7 out of 10 people enter university, unlike Europe where over 80% of universities are national or public, in Korea, where over 80% are private universities, the structure is distorted as higher education is almost left to the private sector."

He continued, "While the whole society encourages entrance exam competition, after admission, it shifts the burden of tuition and even the cost of building credentials onto students and parents by saying 'university is a personal choice.'"

Mayor Lee also argued that society should share a certain portion of tuition fees, meaning that the beneficiaries of university education should be seen as society.

He emphasized, "As social structures rapidly reorganize around the 4th Industrial Revolution, the cultivation of creative high-level talent has become important, and OECD countries are increasing higher education enrollment rates and investment. Tuition support should be seen not as a cost but as an 'investment' in future talent."

He explained, "Half-price or free tuition requires astronomical funding and is difficult to implement immediately, but the deferred tuition payment system requires resources roughly equivalent to the interest amount, so the burden is relatively low."

Meanwhile, Goyang City plans to hold a forum hosted by the Goyang City Policy Research Institute in September to discuss the realization plan for the 'Complete Deferred Payment System for Tuition' in more depth.

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