Minister Choi Kyo-jin of the Ministry of Education said on the 21st that "the reform of the grant-in-aid (earmarked tax) for educational finance is not a reform to cut education funding."
The Minister stated accordingly at the fiscal operation strategy council of related ministries held at the Government Complex Seoul in Jongno-gu, Seoul, that day. This followed the government's move to abolish the "national tax linkage system," which fixes 20.79% of national tax as education grants. The national tax linkage system has faced criticism that education grants keep expanding as national tax revenue increases, regardless of the decline in the school-age population.
The Minister said, "When allocating education grants, we will reflect the changed education environment, including the decline in the school-age population and shifts in economic and revenue conditions," and added, "We will continue stable fiscal investment in elementary and secondary education." He also said, "We will expand investment into early childhood education, higher education, and lifelong education to achieve educational development across all stages of life."
The Minister said, "We agreed (with the Ministry of Planning and Budget) that under no circumstances should the budget supporting elementary, middle, and high school students be reduced or fall to a level that cannot even cover personnel costs relative to inflation."
However, the education community pushed back, saying the move undermines the autonomy and stability of education. That day, the "Emergency Action to Respond to the Reform of the grant-in-aid (earmarked tax) for educational finance," a coalition of 363 education, civic, and social groups nationwide, held a press conference condemning the reform in front of the Government Complex Seoul.
Emergency Action said, "If the government ultimately ignores the voices of education stakeholders and pushes ahead with abolishing the 20.79% linkage system, we will launch powerful joint actions together with superintendents nationwide, teachers, parents, education workers, and the education civil society." Regarding the national tax linkage system, it said, "It is a breakwater for education finance that enables local education to take responsibility for education stably, without being swayed by the administration's judgment and political circumstances."
The Korea Council of Education Superintendents, which brings together superintendents from 17 cities and provinces nationwide, also said in a statement, "Even if the school-age population declines, basic educational finance demands such as personnel costs for faculty and staff, school operating expenses, and facility safety and maintenance costs do not decrease at the same rate."