Financing for equity in higher education
1. Education resources to subnational governments
2. Education resources to institutions
3. Education resources to students
4. Support for students' living costs
Introduction
Key financing indicators (UIS Data)
The Republic of Korea recorded a gross enrolment ratio for tertiary education of 102.81 per cent as of 2022 and 100.36 per cent in 2021, continuing a trend of maintaining over 90 per cent enrolment for several consecutive years. The initial government funding per tertiary student was 16.56 per cent of GDP per capita in 2021 (UIS).
Tuition-free status
Public tertiary education is not tuition-free. According to the Higher Education Act, each public and private university nationwide is required to establish an enrollment fee deliberation committee consisting of faculty, students, and external experts to determine tuition levels. Once the level of tuition is decided, the schools are required to reflect the result and are permitted to charge tuition fees. While there are provisions for fee reductions or exemptions under specific circumstances, such as during natural disasters, there is no legal mandate for tuition-free public higher education.
Governance
The financing of higher education is governed by Article 7-2 of the Higher Education Act, which mandates the Ministry of Education to lead and coordinate strategic public investment in the sector. Under this law, the Minister of Education is required to develop a Basic Plan for Higher Education Financial Support every five years in consultation with other central government agencies and local governments. The Basic Plan must include long-term funding goals, projections of the financial conditions of universities, differentiated allocation principles based on institutional roles, performance evaluation frameworks, and strategies for balanced regional development.
1. Education resources to subnational governments
Higher education institutions are primarily funded directly by the central government, rather than through local governments. National universities receive operating budgets from the Ministry of Education, as stipulated in the Presidential Decree on the Establishment of National Schools. The Ministry may also delegate the National Research Foundation to implement funding programs through performance-based agreements. The local governments can also provide financial support.
2. Education resources to institutions
Funding for private universities in the absence of public institutions
Higher education funding is centrally coordinated by the Ministry of Education, with the National Research Foundation (NRF) serving as the primary implementing agency. The Ministry has overseen performance-based funding for universities through structured national programmes, notably the University Innovation Support Programme and the National University Development Project.
The University Innovation Support Programme (대학혁신지원사업) provides performance-based funding to public and private higher education institutions. Quantitative evaluation criteria includes institutional scale, such as the number of enrolled undergraduate students, per-student educational expenditure, enrollment fulfilment rates, and the rate at which the tuition revenue is reinvested into education, while qualitative evaluation focuses on educational innovation outcomes and institution-defined autonomous performance indicators, including internal quality assurance mechanism. An equity formula within this programme also directs targeted resources to institutions with a higher proportion of low-income students by assigning additional weight to institutions with a higher number of recipients of the National Scholarship Type I. Additionally, a restructuring Fund supports universities that voluntarily reduce student enrollment to address demographic shifts.
Allocation and equity
The National University Development Project (국립대학육성사업) is a dedicated funding scheme for Korea’s 37 national universities, designed to strengthen their public mission and regional role. In 2025, the program allocates approximately KRW 424.3 billion, distributed through a combination of quantitative (40%) and qualitative (60%) evaluations. The quantitative formula considers indicators such as average per-student educational expenditure, the number of enrolled undergraduate students, enrollment fulfillment rates, and institution-level use of tuition revenue, and the share of students receiving need-based national scholarship Type 1, to which equity-adjusted multipliers are applied in order to favour institutions that serve disadvantaged populations. The qualitative assessment assigns performance grades (S to C) based on innovation outcomes and institutional accountability, with differentiated incentives or penalties applied accordingly. Based on these grades, incentives are differentially allocated, with funding increases or reductions applied in cases where institutions receive an S or C grade for two consecutive years.
3. Education resources to students
Admission for vulnerable groups
The National University Development Project (국립대학육성사업) is a dedicated funding scheme for Korea’s 37 national universities, designed to strengthen their public mission and regional role. In 2025, the program allocates approximately KRW 424.3 billion, distributed through a combination of quantitative (40%) and qualitative (60%) evaluations. The quantitative formula considers indicators such as average per-student educational expenditure, the number of enrolled undergraduate students, enrollment fulfillment rates, and institution-level use of tuition revenue, and the share of students receiving need-based national scholarship Type 1, to which equity-adjusted multipliers are applied in order to favour institutions that serve disadvantaged populations. The qualitative assessment assigns performance grades (S to C) based on innovation outcomes and institutional accountability, with differentiated incentives or penalties applied accordingly. Based on these grades, incentives are differentially allocated, with funding increases or reductions applied in cases where institutions receive an S or C grade for two consecutive years.
Scholarships, grants and loans for vulnerable groups
National scholarships are offered to support equitable access to higher education, with the most prominent being the National Scholarship Type I, as well as targeted scholarships for students from multi-child families (three or more children). The scholarship is administered by the Korea Student Aid Foundation (KOSAF) under the authority of the Minister of Education, as established in Article 4 of Regulations on the Operation of the National Scholarship Programme.
The eligibility and amount of the Scholarship are determined based on the student’s household income bracket, which is assessed through the Social Security Information System managed by the Ministry of Health and Welfare. There are 10 income brackets used for eligibility, and families below the official poverty line are classified as recipients of Basic Living Security Benefits or Near-Poverty Benefits. Support is also differentiated by family composition, including multi-child households. For students in the Basic Living Security or Near-Poverty groups, full tuition is covered per semester, including full tuition coverage for third or subsequent children in multi-child families up to income bracket 8. Students in brackets 1 to 3 receive up to KRW 6 million per year (KRW 6.1 million for the first and second child in multi-child families). Students in brackets 4 to 6 receive up to KRW 4.4 million per year (KRW 5.05 million for the first and second child in multi-child families). Those in brackets 7 and 8 are eligible for up to KRW 3.6 million per year (KRW 4.65 million for the first and second child in multi-child families). Students in bracket 9 receive KRW 1 million per year, increased to KRW 1.35 million for the first and second child and KRW 2 million for the third or subsequent child in multi-child families. All support is granted within the limit of actual tuition costs and does not exceed mandatory school fees.
The Zero-Interest Student Loan Programme is available for undergraduate and graduate students from rural areas. Managed by KOSAF and supported by the Ministry of Agriculture, Food and Rural Affairs, the program provides loans that cover 100% of tuition fees, including admission and course fees. Eligible students must have parents or guardians residing in rural areas engaged in agriculture or fisheries. Borrowers can select a grace period of up to 10 years after graduation, followed by equal principal repayments over another 10 years. This program helps ensure that students from rural backgrounds are not excluded from higher education due to financial barriers.
4. Support for students’ living costs
Transportation
No information was found.
Accommodation
To reduce the housing burden for students who must relocate to pursue higher education, the Korea Student Aid Foundation (KOSAF) implemented the Housing Stability Grant programme for Low-Income Students. Launched in 2025, this grant offers up to KRW 200,000 per month during the academic semester to undergraduate students from low-income families (Basic Livelihood Security and Near-Poverty groups) who attend universities far from their registered family residence. Eligible students must be unmarried and enrolled in a participating university, with their parents residing in a different transit region (as defined by inter-city transportation zones). The grant covers actual housing-related expenses, including rent, maintenance fees, utility bills, and interest on housing loans.
Textbooks
No information was found.
This profile was reviewed by Myung suck Woo, professor at Korea National University of Education, and by the Permanent Delegation of the Republic of Korea to UNESCO.
