A recent analysis of microdata from the Household Income and Expenditure Survey by Statistics Korea revealed that high-income families with middle and high school students spend over 1 million won per month on private education. This amount is similar to the combined monthly expenditures on food and housing. It is not only high-income families that spend a significant portion of their budget on private education; regardless of income level, the average expenditure on private education exceeds that on food and housing.
According to the analysis, households in the top 20% income bracket with children aged 13 to 18 spent an average of 1.002 million won per month on private academies and supplementary education. Excluding households where children did not participate in private education, the average monthly expenditure on private education alone was 1.143 million won. These figures exclude additional costs such as purchasing books or using study rooms, yet the average spending on private education still exceeded 1 million won.
For households in the top 20% income bracket with middle and high school students, the average monthly expenditure on groceries and non-alcoholic beverages was 636,000 won, which is equivalent to the cost of meals. The cost of housing, water, and utilities amounted to 539,000 won. High-income families are spending a similar amount on private education as they do on food and housing.
However, excessive spending on private education is not limited to high-income families. Middle-income families in the 4th income bracket spent an average of 849,000 won per month on private academies, while those in the 3rd bracket spent 636,000 won. When considering households where children participated in private education, the expenditure on food was 567,000 won for the 4th bracket and 518,000 won for the 3rd bracket. In both cases, the spending on private education exceeded that on food. The cost of housing, water, and utilities, which corresponds to housing expenses, was also lower than the expenditure on private education.
Even low-income households showed a similar pattern. In the 1st income bracket, which represents the bottom 20%, households with middle and high school students spent an average of 482,000 won on private education per month. The difference compared to the 2nd bracket (515,000 won) was not significant. In terms of other expenditures, households in the 1st bracket spent an average of 481,000 won on food and 356,000 won on housing. Once again, the expenditure on private education was higher than the cost of basic necessities.
Professor Kang Sung-jin from Korea University's Department of Economics explained that "there is a limit to reducing spending on necessities such as food and housing because they are essential for living." Nevertheless, even low-income households are spending more on private education than on basic living expenses. This suggests that private education expenses have become a significant expenditure that cannot be easily reduced, regardless of income level. A private education industry insider, who has been operating an academy for 10 years, stated that "recently, the perception of private academies has shifted from being considered a luxury to becoming more of a necessity," adding that although there may be differences in taking more expensive classes based on income level, it is rare to find students who do not attend private academies.
According to the results of the survey on extracurricular education expenses conducted by the Ministry of Education and Statistics Korea, the participation rate in private education has increased regardless of household income. In households with monthly incomes of less than 3 million won, the participation rate in private education increased by 3.5 percentage points from the previous year to 57.2%. Among households divided into 1 million won increments from less than 3 million won to 8 million won or more, the segment that experienced the largest increase in private education participation rate was the "less than 3 million won" bracket.
Furthermore, the total amount spent on private education in the previous year amounted to 26 trillion won, representing a 10.8% increase compared to the previous year's 23.4 trillion won. As the overall number of students has decreased, the average monthly expenditure on private education per student increased from 367,000 won to 410,000 won, a 11.8% increase. The participation rate in private education stands at 78.3%, indicating that 8 out of 10 students in elementary, middle, and high school attend private academies. Private education expenses have reached an all-time high, and the participation rate is also at its highest level.