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Tuition hike cap set at 5.49% for 2025 as financial pressure on universities continues

Published: 26 Dec. 2024, 13:45

LEE TAE-HEE
[email protected]

Chang Je-kuk, then-chair of the Korean Council for University Education, presents a policy proposal regarding universities during a meeting with Education Minister Lee Ju-ho on Jan. 31. The proposal requests that the Education Ministry abolish its policy of offering government funding for the Type 2 National Scholarship only to universities that freeze or lower domestic undergraduate tuition. [NEWS1]

The Ministry of Education has set next year's tuition increase cap for domestic students at 5.49 percent while continuing to encourage universities to freeze tuition through government funding.

The 5.49 percent cap for the 2025 academic year marks a slight decrease of 0.15 percentage points from last year's cap of 5.64 percent, the Education Ministry said Wednesday.

The ministry plans to officially notify universities of the cap by Dec. 30. Universities will begin discussing next year's tuition during their committee meetings, typically held from late December to February.

Under the Higher Education Act, tuition for domestic students can only increase by up to 1.5 times the average consumer price increase over the past three years. Consumer prices rose by an average of 3.66 percent over this period.

Tuition for international students is not subject to this cap and can be adjusted independently.

Despite the increased cap, the ministry encourages universities to freeze tuition, citing financial struggles and the need to improve student learning environments. A ministry spokesperson said, "We recognize factors that may lead to a tuition increase due to universities' financial difficulties. However, considering the financial strain on the public, we will continue to advocate for a tuition freeze in 2025."

The ministry also plans to make it easier for universities that freeze tuition to access government funding. Since 2012, government funding for the Type 2 National Scholarship has been granted only to universities that freeze or reduce domestic undergraduate tuition and maintain or increase university-funded scholarships.

From next year, the Ministry will extend funding to universities that freeze or lower domestic undergraduate tuition, as long as they maintain university-funded scholarships at 90 percent or more of the previous year's level.

Many universities, under pressure to keep tuition levels stable, are becoming increasingly reliant on government support. According to the Korea Advancing Schools Foundation, 190 private universities reported total revenue of 19.85 trillion won ($13.56 billion) in 2023, with tuition accounting for 50.1 percent — a 1.3 percentage point drop from the previous year and the lowest since 2010. Government funding now constitutes 19.5 percent of universities' total revenue, up 1.2 percentage points from the previous year.

BY LEE TAE-HEE [[email protected]]