South Korea’s education superintendents are voicing serious concerns that a recently passed administrative integration law could lead to significant cuts in funding for local education boards. The law, passed by the National Assembly’s Administration and Security Committee on February 12th, allows for adjustments to local tax rates – including the crucial local education tax – within a range of plus or minus 100% in regions undergoing administrative integration.
The Korea Education Superintendents Association (KESA) warned that the potential inclusion of the local education tax in these adjustments poses a “serious concern,” according to a statement released February 13th. The law facilitates the creation of special municipalities by integrating regions like Chungcheongnam-do and Daejeon, Gyeongsangbuk-do and Daegu, and Jeollanam-do, and Gwangju. KESA fears that lowering the local education tax rate could drastically reduce revenue for regional education offices.
According to KESA’s analysis, a 100% reduction in the tax rate could result in a loss of 7.165 billion won for the Daegu-Gyeongbuk region, 5.982 billion won for Chungcheongnam-do and Daejeon, and 5.423 billion won for Jeollanam-do and Gwangju, totaling 18.57 trillion won nationwide. This represents a “direct and immediate blow to education finances,” the association stated.
The concerns center on the lack of an automatic provision to offset potential revenue losses from the local education tax. KESA argues that without such a safeguard, reductions in local tax revenue could directly translate into cuts in funding for education programs. The association highlighted that education spending is often “rigid,” meaning cuts would likely impact essential areas like special education, care services, and multicultural education.
Kim Dae-jung, a leading education superintendent, expressed regret that financial and special provisions were not included in the legislation, according to a report by Asia Economy. The Joongdo Daily reported February 18th that KESA emphasized the local education tax is a core funding source for education, alongside national grants, and supports mandatory and routine educational expenditures.
The administrative integration law grants authority to adjust local tax rates but lacks a mechanism to automatically compensate for any resulting decrease in education funding. This omission is a key point of contention for KESA, which fears that changes to tax structures, particularly those linked to education taxes like acquisition and registration taxes, will further erode education budgets.
As of February 18th, the Education Ministry had not issued a public response to KESA’s concerns. The next scheduled meeting of the National Assembly’s Administration and Security Committee remains unannounced.
