Korean Educational Development Institute(KEDI)

A Study on Securing the Government's Finance for Higher Education

The overall size of Korea's higher education budget has been steadily expanding. However, the fiscal conditions and financial difficulties of the university are emerging as a persistent problem in the field of higher education. This is because the government's policy to limit tuition increases has made it difficult for university finances, and the expansion of national scholarships has led to a decrease in the actual higher education funding. Moreover, the Demographic Changes pose challenges for Higher Education rapidly. As the school-age population continues to decline, universities, government departments, and related institutions are emphasizing the need for improving the financial conditions of higher education, a key factor of national competitiveness, and stressing the necessity of direct and continuous financial support at the national accountability level.

With this backdrop in mind, this study suggests the four necessities of the study on securing the government finance of higher education: First, accurate Basis for the Establishment of Higher Education financial scale, Second, need to develop specific financial plans corresponding to the expansion of higher education finance, Third, Identifying the influence of government funding on universities and the financial deficits of universities, and Fourth, the need to seek indirect measures such as university deregulation other than direct government financial support.