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Korea's education costs skyrocket to highest since global financial crisis

Published: 07 Apr. 2025, 19:16

A parent and her child walk past a kindergarten in Gangnam District, southern Seoul, on April 7. [YONHAP]

Education costs in Korea in March saw their biggest increase since 2009 during the global financial crisis, driven primarily by widespread university tuition hikes.

The education category of the Consumer Price Index (CPI) rose by 2.9 percent compared to the same month last year, marking the highest year-on-year increase in 16 years since a 4.8 percent surge in February 2009, according to Statistics Korea on Monday.

The rise in education costs contributed 0.21 percentage points to the overall consumer price inflation of 2.1 percent recorded in March.

The surge is largely due to numerous universities raising their tuition fees for the 2025 academic year. Notably, private university tuition increased by 5.2 percent year-on-year in March, the steepest climb since a 7.1 percent rise in February 2009. Public university tuition, which had remained unchanged for 36 consecutive months from March 2022 to February 2025, saw a 1 percent uptick last month.

According to the Korean Association of Private University Presidents, 64.7 percent, or 123 out of 190, four-year universities had decided to raise tuition for domestic undergraduate students as of Feb. 20. Among private universities, 74.8 percent, or 113 out of 151, implemented tuition hikes, while 25.6 percent, or 10 out of 39, public universities followed suit.

These tuition increases would continue to influence overall inflation figures until February 2026, a Statistics Korea official said.

The trend of tuition hikes may persist in the coming years, as universities that maintained current tuition levels this year might opt to increase them in the future. In March, tuition fees for private graduate schools rose by 3.4 percent, public graduate schools by 2.3 percent and vocational colleges by 3.9 percent compared to the same period last year.

A child jump ropes while a guardian watches on in front of a library in Gangnam District, southern Seoul, on April 7. [YONHAP]

Kindergarten fees also reversed a 58-month streak of decline, rising by 4.3 percent in March. This increase varied significantly by region, with notable surges in South Jeolla, Gangwon and Busan by 24.3 percent, 15.7 percent and 14.7 percent, respectively. Conversely, Ulsan experienced a 4.3 decrease, thanks to free education policies for children aged 3 to 5 being expanded.

Costs for home study materials and e-learning services also increased by 11.1 percent and 9.4 percent, respectively. Private lesson fees at music, art, and sports academies notably rose by 2.2 percent, 2.9 percent and 3.9 percent, respectively.

Other than education, the food and non-alcoholic beverages sector saw prices climb by 2.4 percent, and the restaurant and lodging sector experienced a 3 percent increase compared to March 2024. The government attributes these rises to companies leveraging economic uncertainties to raise prices and has pledged to monitor the industry for potential collusion or unfair practices.

Fair Trade Commission Chairman Han Ki-jeong on Monday convened an executive meeting and instructed officials to “thoroughly monitor whether the recent rise in prices stemmed from collusion or unfair practices.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.

BY KIM MIN-JOONG [[email protected]]