The More You Earn, the Higher the Increase Rate of Private Education Expenses... Intensifying Polarization

Top 20% Income Group Spent 29% More Than in 2019
Tuition Fees Equal to Total Family Food and Housing Costs

As the government targets 'killer questions' in the College Scholastic Ability Test to reduce private education, an analysis revealed that higher income levels corresponded with greater increases in spending on private academies.

On the 5th, Shinhan Card analyzed its members' academy sales and its own income model estimates, finding that in the second quarter of this year, the top 20% income group increased their spending on academies by 29% compared to 2019. Customers in the 20?40% income bracket increased their academy usage by 20.3% compared to 2019. The increases for the 60?80%, 40?60%, and 80?100% income groups were 19.3%, 17.7%, and 15.8%, respectively.

Photo by Mun Ho-nam munonam@

Academy spending increased compared to four years ago regardless of income level, but the higher the income, the greater the increase.

Overall, academy spending in the second quarter of this year rose by 25.8% compared to 2019.

Looking at the academy market, the share of high-income customers has continuously increased. In 2019, the top 30% income group accounted for 51.5%, rising to 56.8% in 2021 and 57.6% this year.

The middle 40% income group’s share decreased from 34.8% in 2019 to 33.2% in 2021 and 32.7% in 2023. The bottom 30% income group’s share dropped from 13.7% in 2019 to 10.1% in 2021, and further declined to 9.8% this year.

According to an analysis of the microdata from last month’s Statistics Korea Household Trends Survey, in the first quarter of this year, households in the top 20% income bracket with children aged 13 to 18 spent an average of 1,143,000 KRW per month on private academy and tutoring education. This accounted for 17.5% of their average monthly expenditure (6,530,000 KRW).

These households’ average monthly spending on food and non-alcoholic beverages was 636,000 KRW, and on housing, water, and utilities was 539,000 KRW. In other words, academy fees are roughly equivalent to the combined monthly food and housing expenses for the entire family.

The ‘2022 Survey on Private Education Expenses for Elementary, Middle, and High School Students’ showed that total private education expenses amounted to approximately 26 trillion KRW. This represents an increase of about 11% compared to 23.4 trillion KRW in 2021 and is the highest figure since the survey began in 2007.

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