[Exclusive] With Budget Safeguard Gone, Digital Learning Center May Be Reduced or Disappear in Financially Weaker Local Governments

Transition to Fully Autonomous Project

At Risk of Reduction or Discontinuation if Deprioritized by Local Governments

The budget safeguard for the "Digital Learning Center" project, which has served as a safety net for digitally marginalized groups, is expected to disappear starting next year. As the financial authorities decided to eliminate the mandatory budget allocation rule (separate quota) under the pretext of "enhancing local fiscal autonomy," concerns are growing—particularly among financially weaker local governments—about the reduction or even discontinuation of this project.

Ministry of Planning and Budget to exclude Digital Learning Center from "separate quota"... Budget guarantee disappears

Digital experience education is being conducted for citizens at the Oiljang Market in Gunwi County, Daegu Metropolitan City. Daegu Metropolitan City.

According to the "Detailed Guidelines for the Preparation of the 2027 Regional Balanced Development Special Account Budget Proposal," recently distributed by the Ministry of Planning and Budget to local governments nationwide on the 18th, the ministry has decided to exclude the Digital Learning Center project from the "separate quota" management category, citing the need to "enhance the autonomy of cities and provinces." As a result, the number of projects for which the central government guarantees a certain portion of expenditure through the separate quota will decrease from the current six to five.

The special account for balanced regional development is a system in which the central government allocates the budget to local governments in the form of a block grant, allowing local authorities to design and implement projects autonomously according to local circumstances. The "separate quota" is a mechanism, separate from the basic block grant that local governments can use freely, in which central ministries secure a certain level of funding for specific projects. While guaranteeing local autonomy, it has served as a kind of "budget safety net" to maintain minimum funding for policy-essential projects.

The Digital Learning Center will now become a fully autonomous project that must compete with other initiatives within each city and province’s overall block grant limit for budget priority. If a local government does not allocate a budget, the project could be reduced or virtually disappear. This risk is particularly high for education projects, which, unlike road or social overhead capital (SOC) projects, do not yield quantifiable results in a short period. Therefore, in regions with poor fiscal conditions, these projects are likely to be pushed down the priority list. An official from a local government commented, "In some areas with low fiscal independence, such as North Gyeongsang, North Jeolla, Gangwon, and South Jeolla, the related budget may be significantly reduced or not allocated at all."

Ministry of Science and ICT: "Requested maintenance, but not accepted"... Ministry of Planning and Budget: "It was an issue that had to be addressed sooner or later"

AI Digital Learning Center operated by Gwangju Metropolitan City. Gwangju Metropolitan City.

The Ministry of Science and ICT, which oversees the project, requested that the separate quota be maintained, but the request was not accepted by the Ministry of Planning and Budget. An official from the Ministry of Science and ICT stated, "Since the project had a significant effect on improving AI literacy among the elderly, we requested the maintenance of the separate quota, but it was not reflected. In financially struggling local governments, the project may be excluded, so we are considering supplementary measures such as private sector partnership models."

The Digital Learning Center is a digital education program operated mainly through hub centers established in libraries, post offices, and administrative welfare centers. It supports free learning opportunities for everyone, covering topics from how to use kiosks and smartphones to understanding AI technologies. Since its launch in 2020, the cumulative number of trainees over five years has reached 4.33 million. Notably, 71.7% of last year’s participants were in their 60s or older, establishing the center as a leading educational infrastructure for digitally vulnerable groups such as the elderly. As of this year, the related budget stands at 38.1 billion won, with 80% funded by the central government and 20% by local governments. The Ministry of Science and ICT has been expanding the project to bridge the digital divide, increasing the number of hub centers from 37 to 69 this year.

An official from the Ministry of Planning and Budget explained, "The separate quota was always intended as a temporary measure to help projects take root in the early stages of introducing the autonomous account system. It was an issue that had to be lifted eventually, and the timing was just brought forward a bit."

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