"Still, Only Education is Hope"…Significant Increase in Education Budget Despite Deficit

Low-Income Households' Spending on Academy Fees Increases by 26.2%

In the first quarter of this year, low-income households that recorded a 'deficit budget' increased their education expenses by more than 30%.

According to the Household Trends Survey by Statistics Korea on the 30th, the average monthly education expenditure of the lowest 20% income group (1st quintile) households in the first quarter was 34,282 won, an increase of 8,898 won (35.1%) compared to the same period last year. During the same period, the average education expenditure increase rate for all households was only 3.8%.

Daechi-dong Academy District, Gangnam-gu, Seoul. Photo by Mun Ho-nam munonam@

Among the detailed items of education expenses, regular education expenses increased by 41.4%, and expenses for private academies and supplementary education also rose by 26.2%.

Both items showed the largest increase across all income quintiles.

Within regular education, spending on higher education (expenses for educational services at regular institutions such as two-year colleges or higher) increased the most, by 86.8%.

Among private academies and supplementary education, adult academy education expenses increased by 186.2%.

Education expenses of low-income households living with a 'deficit budget'?where expenditures exceed income?increased at a much higher rate than the average.

Increases in Health, Housing, and Related Expenses

[Image source=Pixabay]

Increases in health-related expenses were also notable in this income quintile.

Health expenditures for 1st quintile households in the first quarter were 183,949 won, up 32,818 won (21.7%) from the same period last year. This is the highest increase rate since the third quarter of 2013 (28.9%).

The increase rate was about three times higher than the average health expenditure increase rate of 7.7% for all households.

Specifically, spending on pharmaceuticals rose by 12.7%, health medical supplies and equipment expenses increased by 25.7%, and inpatient service expenses also grew by 43.5%.

Housing, water, and utility expenses also increased the most (15.7%) in the 1st quintile.

Due to the rise in electricity and gas rates, fuel expenses increased by 26.1% compared to the same period last year. Additionally, actual housing costs, including monthly rent, rose by 6.6%.

1st Quintile Households Record Average Monthly Deficit of 460,000 Won

Meanwhile, the average disposable income of 1st quintile households, the lowest 20% income group, in the first quarter of this year was 858,389 won.

Consumption expenditure was 1,319,041 won, resulting in an average monthly deficit of about 461,000 won per household.

Compared to a deficit of 313,000 won in the same period last year, the deficit widened by 47.2%.

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