Ministry of Education Confirms Next Year's Budget at 102 Trillion Won... Surpassing 100 Trillion Won for the First Time in History

Increase in General Financial Support... 12.4 Billion KRW per National University
Establishment of Special University Account... Financial Increase of 1.72 Trillion KRW
Non-Capital Region Private University Finances Up 1.8 Times... 1.0774 Trillion KRW

[Asia Economy Reporter Yoo Byung-don] The Ministry of Education's budget for next year has been finalized at 101.9979 trillion won. This is the first time the Ministry of Education's budget has exceeded 100 trillion won based on the main budget. In the supplementary budget (supplementary appropriation), it recorded 100.5001 trillion won in the second supplementary budget in May.

The Ministry of Education announced on the 24th that the budget for next year was finalized at 101.9979 trillion won after deliberation by the National Assembly. This is an increase of 200 billion won compared to the government's submitted budget proposal (1.5505 trillion won). Compared to this year's Ministry of Education budget (89.6251 trillion won), it increased by 13.8% (12.3728 trillion won).

The budget for the early childhood and elementary/middle school sectors was set at 80.912 trillion won, an increase of 10.1819 trillion won from this year. Among this, the local education finance grant for 2023 was increased by 10.7011 trillion won from this year to 75.7606 trillion won.

The higher education sector budget also increased by 1.6126 trillion won from this year to 13.5135 trillion won, and the lifelong and vocational education sector budget was set at 1.4407 trillion won, 309.1 billion won more than this year. In particular, related laws for establishing a special account for higher and lifelong education support were passed together at the plenary session on the same day, enabling the establishment of a special account and the budgeting and operation of projects related to higher and lifelong education from next year.

The scale of the 2023 higher and lifelong education support special account is about 9.74 trillion won. Of the education tax revenue budget, excluding the amount allocated to the early childhood education support special account, 50% amounting to 1.52 trillion won will be transferred to the special account, and 200 billion won will be supported from the general account. Also, about 8.2 trillion won of university competitiveness enhancement project budgets, which were included in the general account, will be transferred to the special account.

The Ministry of Education plans to utilize the expanded resources through the higher and lifelong education support special account for △ promoting university autonomous innovation projects (increase of 392.4 billion won) △ fostering regional innovation hubs for local universities (increase of 531.4 billion won) △ improving university education and research conditions (increase of 660.3 billion won) △ advancing future teacher training for elementary and secondary education and supporting balanced academic development (increase of 75.5 billion won).

The scale of general financial support (University Innovation Support Project) is 805.7 billion won for general universities and 562 billion won for vocational colleges. General universities receive 6.9 billion won each, and vocational colleges receive 5.4 billion won each. Until now, these funds could not be used for faculty and staff salaries or operating expenses, but from next year, execution standards will be relaxed to allow partial use.

For 37 national universities, including the existing 'National University Development Project,' an average of 12.4 billion won is provided per institution. The total general financial support for national universities increased by 308 billion won from the original plan to 458 billion won. The general financial support for national universities, which was divided into the University Innovation Support Project and the National University Development Project, will be merged into a single 'National University Development Project.' Separately, 400 billion won and 150 billion won were additionally allocated compared to the original plan for 'National University Facility Expansion' and 'National University Laboratory and Practical Equipment Expansion' to improve aging facilities and educational environments. Under these two project titles, 34.3 billion won will be invested per national university.

A new 'Local University Revitalization Project' was also established for local and struggling private universities, with a total of 250 billion won allocated, including 190 billion won for general universities and 60 billion won for vocational colleges. The target beneficiaries are mid-to-upper tier non-metropolitan private universities that have passed the basic competency diagnosis and receive general financial support, with 2.88 billion won allocated to each of 66 general universities and 870 million won to each of 69 vocational colleges.

25 billion won was allocated for structural reform support, including financial diagnosis of private universities and consulting for structural improvement. A new 'Local Government-led Cooperation System Activation Project' was established under the Regional Innovation Platform (RIS project) to transfer university administrative and financial authority to local governments, with 12 billion won newly allocated. The existing RIS project budget was also increased by 38 billion won, benefiting all 14 non-metropolitan cities and provinces selected as platforms.

Scholarship benefits for graduate students and research sites will also be expanded. The 4-stage Brain Korea (BK) 21 program, which cultivates master's and doctoral level talents, was increased by 112 billion won to 526.1 billion won. The increased amount will be used to expand research scholarships (69.5 billion won) and excellent performance research incentives (14.7 billion won). The Graduate School Innovation Support (Glocal BK) project budget was increased by 27.8 billion won, selecting a total of 24 graduate schools, four more than the original government plan, with 3.36 billion won allocated per school.

Two graduate schools of education were selected and funded to reorganize teacher training courses at the graduate level through the newly established 'Teacher Training Course Advancement Project,' with 10.5 billion won allocated from the special account increase. The humanities and social sciences basic research project was increased by 55 billion won, and the science and engineering academic research infrastructure project (university-focused research institute hub type) was increased by 10 billion won.

The university lifelong education system support project (LiFE) was also increased by 23.7 billion won to a scale of 51 billion won, allowing designation of 50 schools, more than the original government plan of 34 schools. The 'Higher Vocational Education Hub District' (HIVE) project, in which vocational colleges collaborate with basic local governments to support regional settlement of young talents, was also increased by 49.1 billion won to a scale of 90 billion won. Fifty consortia will be designated, with 1.8 billion won allocated to each.

The Ministry of Education emphasized, "From next year, we will actively promote strategic investment expansion for innovation in higher and lifelong education."

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