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Radical Steps Need to Reduce Private Tutoring
Soaring education spending has emerged as one of the major reasons for
married women to avoid childbirth, pushing South Korea to rapidly
become an aged society. Specifically, private tutoring costs are
putting strong pressure on couples to go without children. According to
the National Statistical Office (NSO) on Friday, consumer prices rose
at a relatively stabilized rate of 2.5 percent last month compared with
a year before. However, households’ education-related spending jumped
between 5 percent and 9 percent, far higher than overall price hikes.
It is not surprising for parents to complain that they are scared to
raise children due to the heavier financial burden for education. But,
this does not necessarily mean that policymakers can overlook such a
complaint, as the country has now recorded the worlds’ lowest birthrate
of 1.08. An increasing number of young people prefer to remain single
rather than get married due to difficulties in getting jobs and
skyrocketing housing costs.
Newly married couples usually suffer from the backbreaking burdens of
childbearing and education. In particular, more and more women tend to
focus more on their career than childbearing, adding fuel to the low
birthrate trend. The NSO statistics showed that the costs for daycare
centers climbed 9.2 percent in April from a year earlier, while
babysitter fees jumped 7.7 percent. Tuition for kindergartens also
surged 9.5 percent.
What’s worrisome is that parents are not able to save money for their
retirement since they have to spend excessively on the education of
their children. According to the Hyundai Research Institute, parents
were found to spend 19 percent of their monthly income on private
tutoring for their children. The private think tank affiliated with the
Hyundai Group said each household sets aside an average of 646,000 won
for private tutoring, or 381,700 won per child. What’s astonishing is
that the total volume of South Korea’s private tutoring market is
estimated at 33.5 trillion won, accounting for 3.95 percent of the
nation’s gross domestic product (GDP). The sum exceeds the government’s
entire education budget of 31 trillion won. The burden is much higher
than that of other countries belonging to the Organization for Economic
Cooperation and Development (OECD).
In the end, the huge education costs have a negative effect on the
economy, not only forcing households to cut down both consumption and
savings, but also accelerating the ``double-income, no kids’’
phenomenon. This problem will inevitably make a dent on South Korea’s
international competitiveness in the foreseeable future.
Policymakers must produce radical measures to normalize school
education and introduce a new college entrance system in a bid to
reduce private tutoring costs. They also ought to take long-term steps
to encourage marriages and childbirths. May is called the Month of the
Family in South Korea with Children’s Day, Parents’ Day and Teachers’
Day. We need to redouble our efforts to restore the value of having a
family. |
