[The Editors' Verdict] The Weight of the Three-Year Temporary Installation of the Higher Education Account

[Asia Economy Reporter Choi Il-gwon] The determination of President Yoon Seok-yeol to reform education, as conveyed from inside and outside the presidential office, is said to be unimaginably strong. Although the government's principle-based response to the Cargo Solidarity strike succeeded, making labor reform the top priority reform task of the current administration, internally among the three major reforms (labor, pension, education), education still firmly holds the number one priority.

A senior official from the presidential office, met in private, said, "'Education is the starting point of all reforms' is President Yoon's conviction." At one point, it became a topic of discussion that President Yoon directly ordered reforms to the Ministry of Education during a meeting with ministers and vice ministers. A few months ago, after a discussion with ministers and vice ministers, President Yoon went around the table at a dinner, making toasts and exchanging good wishes. When he reached the table where the Ministry of Education's vice minister was seated, instead of the usual pleasantries, he said, "Reform in the Ministry of Education is important," reportedly injecting a sense of urgency.

President Yoon considers education reform the top priority because he recognizes its impact is incomparable to other reforms. A ruling party official conveyed, "The president believes that changing education is essential to revitalize labor and local areas and to establish a virtuous cycle structure for economic development." In other words, the judgment is based on the belief that solving educational issues is indispensable to resolving all structural problems in our society and achieving sustainable economic growth. At a recent national agenda review meeting, President Yoon said, "When you get to the core of regional balanced development, there is the issue of education," supporting this interpretation.

The core of education reform is strengthening the competitiveness of higher education beyond universities. Support and autonomy for higher education will be expanded, but universities must reciprocate with performance. This is impossible without financial support.

Last month, the government's establishment of the 'Special Account for Higher and Lifelong Education Support' drew attention. The main points include transferring an 8 trillion won scale university competitiveness enhancement project and moving 3 trillion won from the education tax, a national tax, to create funds for strengthening university competitiveness. President Yoon emphasized the importance of the special account as "a mechanism to make universities and regional industries move together." This 3 trillion won is part of the 77.3 trillion won local education finance grant sent by the government to metropolitan and provincial offices of education responsible for elementary and secondary education next year. In other words, the elementary and secondary education budget is being reduced to increase support for universities.

The establishment of the special account is significant as the first step of reform. It is also linked to the restructuring of the local education finance grant, which is automatically classified as 20.79% of domestic taxes and is criticized as "rigid and unable to respond flexibly to demand." The special account will be established for a limited period of three years. During this period, the government intends to change the structure of the education grant. It is no exaggeration to say that the success or failure of the government's education reform depends on the next three years. The reason the government is willing to create the special account even by reducing the originally planned 3 trillion won in resources lies here.

There is still a long way to go in education reform. The Structural Improvement Support Act, which supports the closure of private universities in response to population decline, is still pending in the National Assembly. The National Assembly's Special Committee on Political Reform has selected a bill that requires education superintendents to run as running mates with metropolitan and provincial governors in local elections as a key promotion task. These are follow-up tasks that can be addressed once funding is resolved.

Next year is even more important in the three-year roadmap. President Yoon has stated that he will complete reforms even if he is unpopular. However, resistance will be fierce, and above all, the biggest obstacle to reform?the general election?will take place in the meantime. How President Yoon completes the first step next year will determine half of the three-year education reform.

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