Zero tuition for regional universities, free childcare from age 3: How Korea plans to spend W117.6tr on education next year

The Ministry of Education has drawn up a budget proposal of 117.6 trillion won ($85.6 billion) for next year, a 10.6 percent increase from this year, with major new programs targeting regional universities, youth and AI talent development — including full tuition coverage for incoming students at regional national universities.

The ministry announced Tuesday that the 2027 budget proposal stands at 117.6 trillion won, up 11.24 trillion won, or 10.6 percent, from this year's base budget of 106.36 trillion won. By category, early childhood and primary-to-secondary education accounts for 89.74 trillion won (up 7.62 trillion won, or 9.3 percent), higher education for 18.97 trillion won (up 2.93 trillion won, or 18.2 percent), and lifelong and vocational education for 1.41 trillion won (up 239.6 billion won, or 20.5 percent).

A total of 9.97 trillion won will go toward early childhood education and care. The budget for childcare integration — consolidating the previously separate kindergarten and daycare systems — rises from 796.5 billion won this year to 1.17 trillion won next year. Free education and care will be extended from the current coverage of 4- and 5-year-olds to include 3-year-olds as well, with 642.9 billion won allocated for that expansion.

A program to improve teacher-to-child ratios at daycare centers will also be extended from infants under age 1 to those aged 1. The related budget rises by 200.7 billion won from this year to 526.9 billion won. Public and other subsidized daycare centers that open additional infant and toddler classrooms will receive performance bonuses.

Local education grants will increase from 71.67 trillion won this year to 78.87 trillion won next year, a rise of 7.2 trillion won, or 10.1 percent — accounting for roughly 64 percent of the ministry's total budget increase. Next year's grants will be calculated under a new formula that factors in nominal growth rates and changes in the school-age population, replacing the previous automatic allocation of 20.79 percent of domestic tax revenue.

The ministry projects the grants will grow to 84.3 trillion won in 2028, 90.1 trillion won in 2029 and 92.7 trillion won in 2030. A safeguard provision to be written into law will compensate for any year-on-year decline in the total grant amount.

Regional and youth support will receive a combined 4.47 trillion won. The budget for flagship national university innovation support rises from 648.7 billion won to 794.4 billion won, an increase of 145.7 billion won. Of that, three flagship national universities will each receive 80 billion won, bundling growth-engine and AI programs with advanced-field shared university initiatives.

A new "Future Talent Growth Fund" worth 691 billion won will be provided to 21 regional national universities. The nine flagship national universities will each receive an average of 50 billion won, while the remaining national universities will receive an average of 20 billion won in lump-sum grants. Universities will be free to use the money at their own discretion — for strengthening education and research competitiveness, for example — in line with their medium- to long-term development plans, rather than being bound to project-specific purposes as before.

A "regional balanced development scholarship" aimed at drawing students to regional universities will receive 328 billion won. Starting next year, incoming students at 30 regional national universities who apply for national scholarships will have their full tuition covered regardless of income level. Students in medicine, dentistry, pharmacy and veterinary medicine are excluded. Coverage will begin with the freshman class of 2027 and expand to all grade levels by 2030.

The regional talent scholarship budget for regional private universities rises from 80 billion won to 115 billion won, and the number of new recipients will increase 2.5-fold, from about 4,000 to 10,000. The requirement that applicants come from high schools in the same region will also be lifted to encourage students from the greater Seoul metropolitan area to enroll at regional universities.

A total of 3.26 trillion won has been set aside for developing talent in advanced industries, science and engineering, and AI. The budget for advanced-field talent development rises from 485.6 billion won this year to 664.6 billion won next year. The number of universities participating in advanced industry and youth career boot camps will expand from 128 to 170. A new 140 billion won undergraduate problem-solving project program will also be launched, in which university students tackle real-world challenges from companies, local governments and public institutions through project-based work.

Some 600 billion won will go toward building infrastructure to improve science and engineering education conditions at regional private universities. The program will support laboratory, practical training and research facilities at about 40 private universities, including both four-year and two-year institutions.

An "AI Re-launch University" program providing roughly two years of AI convergence education to about 20,000 adults will receive 207 billion won. Degree and non-degree courses will be offered at 40 universities and junior colleges. An additional 20 billion won will fund joint subscription fees for university consortiums, allowing students to use AI tools for academic work and research at no personal cost.

Education Minister Choi Kyo-jin said the 2027 budget proposal reflects "the government's commitment to taking responsibility for education and nurturing future talent," adding that the ministry would "work to bring about changes that people can feel on the ground, now that the education and talent account under the Future Response Fund has been established."