Financing for equity in primary and secondary education
1. Education resources to subnational governments
2. Education resources to schools
3. Education resources to students and families
4. Social policies and family support programmes
Introduction
In the Republic of Korea, education is primarily financed at the central level through tax revenues, with smaller contributions from provincial and local governments. The Ministry of Education (MOE) is responsible for Early Childhood Care and Education (ECCE), compulsory education at the primary and secondary levels, and tertiary education. Free education was introduced in junior high schools in 2002 and extended to high schools in 2019.
The MOE transfers funds to provincial offices of education, which manage a substantial share of education expenditure. These transfers cover the majority of labour costs for teachers and school staff, along with most education expenses and school maintenance. According to OECD Education GPS (2019), public funding for primary and lower secondary education institutions in the Republic of Korea is largely channelled through these central-to-provincial transfers.
1. Education resources to subnational governments
The transfer of funds from the central to local governments is governed by the Local Education Subsidy Act (amended in 2023) which functions as a major equalising mechanism across provinces. The system categorises grants into ordinary and special grants, each with distinct functions. Ordinary grants, which represent 97 percent of total funding and support the basic operation of local education systems, are distributed according to objective indicators such as the number of students and classes, the number of teachers and facilities, the fiscal capacity of local governments, and regional characteristics such as rurality and cost-of-living adjustments. Special grants, comprising the remaining 3%, address specific needs such as national education priorities, regional educational challenges, or emergency financial requirements.
The Local Education Finance Fund is financed through education tax revenues, accounting for 20.79% of internal revenue in 2024. Distribution of funds is based on criteria including the number of students and classes, teacher allocation, school facility conditions, and demographic and geographic characteristics such as rurality or remoteness.
2. Education resources to schools
Funding for Special Education
Schools receive funding based on the number of students, classes, teachers, and the condition of facilities. Additional funding is provided to schools that operate special education programmes, a measure introduced under the Second Five-Year Plan for the Development of Special Education (2003–2007), which explicitly included the expansion of financial support for special education as a key policy objective.
The current fifth 2023–2027 Five-Year Plan prioritises the establishment of new special classrooms and the expansion of the Jeongdaun School (정다운학교) integrated education cooperation model to 200 schools, up from 104 in 2021. The Jeongdaun model was first introduced under the 2018–2022 plan, beginning with 40 schools in 2018.
The Ministry of Education also directly supports national special schools. This includes funding the operation of four specialised education centres for students with visual and hearing impairments, providing teaching and learning equipment for two schools, covering programme operation costs for five schools, and supporting cultural, arts, and physical education activities in six schools.
3. Education resources to students and families
Education Subsidy (교육 급여)
Under Article 12 of the National Basic Livelihood Security System, the State and local governments may provide subsidies to cover educational expenses, including admission fees, tuition fees, textbook costs, and support for educational activities. Eligibility is limited to households with an income at or below 50 per cent of the national median. The Ministry of Education oversees the subsidy, which is distributed through provincial and regional offices of education.
Support is provided in the form of an electronic voucher linked to a debit or credit card for education-related expenditures. The voucher can be used at authorized vendors, including some restaurants and shops, but only for education-related expenses. Admission fees, tuition fees, and textbook costs are covered on an actual-cost basis. As of 2026, annual subsidy amounts are KRW 502,000 for primary school students, KRW 699,000 for middle school students, and KRW 860,000 for high school students.
Educational Expense Support for Students from Low-income Families (교육비 지원)
In accordance with Article 60-5 of the Elementary and Secondary Education Act, students from low-income families, including Education Subsidy recipients, may receive further support through the Educational Expense Support scheme. Local education offices provide subsidies to cover admission fees, tuition fees, school meals, after-school activities, and educational information costs such as computer and internet access, and tuition for students attending private or special-purpose high schools that are not included in the universal free education.
Eligible households include National Basic Livelihood recipients, Single-Parent Family Support recipients, recognised near-poverty households, and students meeting additional criteria set by governors of education, typically households with an income between 50-80% of the national median. Compared to the Education Subsidy, this scheme has a broader coverage and is funded through the budgets of metropolitan and provincial offices of education. Eligibility criteria may vary metropolitan areas and provinces.
North Korean Refugee Students Support (새터민 지원)
The Ministry of Education operates the HOPE programme, which recruits professional mentors in areas such as foreign languages, culture, arts, and sports to support North Korean refugee students through one-on-one mentoring. The programme aims to identify and nurture students’ potential and support their developmental and educational needs.
Lottery Fund Dream Ladder Scholarship
The Lottery Fund Dream Ladder Scholarship, launched in 2019, provides financial assistance to outstanding middle and high school students from low-income families, with continued support extending through university education and supplemented by teacher mentoring. Eligible beneficiaries include households receiving the National Basic Livelihood benefit, those classified as Legal Upper Class (near-poverty household under national criteria), Single-Parent Family Support recipients, and students of Korean nationality from multicultural families, with 3,000 students selected annually. To retain eligibility, recipients must demonstrate good academic performance, have fewer than ten absences per school year, and complete at least ten hours of volunteer service annually. In addition, a separate SOS Scholarship scheme selects 1,500 students each year from households facing emergency or crisis situations, providing financial support for up to ten months.
4. Social policies and family support programmes
The 1999 National Basic Living Security Act (amended 2023) defines seven types of social security benefits, including “education benefits.” These benefits cover school admission fees, tuition, stationery, and other receivable cash or goods. Since 2015, the Ministry of Education has been responsible for administering education benefits, as implemented through the Education Subsidy and Educational Expense Support programmes (See Section 3).
School Supplies Support for Low-Income and Single-Parent Families (저소득층 한부모 가정 학용품비지원)
The Ministry of Gender Equality and Family provides educational support for school supplies to students from low-income single-parent families. Eligible students include those in elementary, middle, and high school whose household income is at or below 63% of the national median income. Recipients may be children of single mothers or fathers raising children under 18, or those caring for children under 22 who are still in high school. Grandparent-headed households, where grandparents raise grandchildren under 18 without parental support, are also eligible.
Educational Activity Expenses for Children from Multicultural Families (다문화가족 자녀 교육활동비)
Implemented in 2024 under Article 10 of the Multicultural Families Support Act, this programme is managed by the Multicultural Families Division of the Ministry of Gender Equality and Family. It supports children aged 7 to 18 from multicultural families with household incomes at or below 100% of the national median. Funds may be used for textbook purchases, access to study rooms, basic learning support, and career development activities. As of 2025, annual support amounts are KRW 400,000 for elementary students, KRW 500,000 for middle school students, and KRW 600,000 for high school students.
5. School meal programmes
The 1981 School Meals Act (amended 2021) governs the provision of school lunches in the Republic of Korea. The Act allows the State or local governments to cover all or part of the cost of school meals, with parents or guardians responsible for any remaining fees. By 2019, 89.5% of students received free school lunches, including all elementary and junior high school students, students in special schools, and some high school students.
For schools not providing universal free lunches, the Act ensures support for students in remote or rural areas, from low-income families, or residing in agricultural, mountain, and fishing villages. Spending is regulated through the special account for education expenses and the school account, limiting expenditures to KRW 8,000 per student.
Local governments may additionally decide to provide free or subsidised lunches. For example, as of 2021, schools in Seoul offer free meals to all kindergarten, elementary, middle, and high school students. Funding is shared, with the city government covering 30%, local district offices 20%, and local education offices 50%.
This profile was reviewed by Myung Suk Woo, Professor of Educational Policy at the Korea National University of Education, and Youngsun Lee, Associate Dean of the College of Education, and Professor of Special Education at Ewha Womans University.
