Gyeonggi Education Chief Warns: Tax Reform Could Slash 2 Trillion Won from Local Education Budget

Gyeonggi Province Education Superintendent Im Tae-hee recently called for concrete measures to address the expected decline in education funding for Gyeonggi Province, which is not part of the administrative integration special law currently under consideration in the National Assembly.

During a press briefing at the Southern Office of the Provincial Education Office on the morning of the 10th, Superintendent Im explained, “The current ratio of total tax revenue is 75% national tax and 25% local tax. The key is to change this ratio to 65% national and 35% local.” He added, “If this change occurs, the local education financial grants received by the Gyeonggi Provincial Office of Education will decrease by approximately 2 trillion KRW (about 1.5 billion USD).”

He expressed deep concern, stating, “Due to poor tax revenue, we couldn’t include new projects in this year’s budget. This situation is likely to become much worse.”

Currently, special laws for administrative integration are being debated in the National Assembly for regions including Daejeon-Chungnam, Gwangju-Jeonnam, and Daegu-Gyeongbuk. Alongside these discussions, the government is pushing to adjust the ratio of national to local taxes from 75-25 to 65-35.

While the aim is to lower the national tax ratio to promote independence and decentralization of local finances through administrative integration, the Gyeonggi Provincial Office of Education faces a financial hit as the local education financial grants tied to national taxes (20.79% of national tax) will decrease.

Consequently, the Provincial Office of Education anticipates that education finances in Gyeonggi Province, which is not part of the administrative integration areas, will suffer, necessitating a response.

In contrast, the government is considering financial support for regions undergoing administrative integration through incentives and the establishment of a special education grant.

Superintendent Im asserted, “The Constitution guarantees students the right to receive education equally,” and strongly urged the Ministry of Education to revise its distribution method for local education financial grants to ensure that more education funding is allocated proportionally to student populations.