Education arms race is bankrupting Korea

By Shin Hyun-gook

“There’s an educational arms race taking place around the world right now ― from China to Germany, to India to South Korea.” This is what U.S. President Obama said in a speech delivered in late 2010 in reaction to a U.S. Congressional move to cut education spending. He further mentioned that the nation that educates its children the best will be the nation that leads the global economy in the 21st century.

A year before these remarks, at a Washington forum of the "Educate to Innovate" Campaign for U.S. excellence in science, technology, engineering and math education, President Obama said, “The South Korean economy has grown enormously over the last 40 years thanks to the education passion of Korean parents.”

Certainly, some highly educated elites of South Korea have contributed to the advancement of the Korean economy. However, in the last few decades of economic development, Korean parents have come to believe in academic “elitism” and “one-upmanship” which have led to an “education arms race” with different connotation. Demanding parents have become South Korea’s biggest education problem. Parents are willing to pay fees for private lessons or tutors to enable their children to secure better employment after graduating a prestigious and renowned university. Some parents do spend well beyond their means, feeling pressure because other families are doing it. The high cost of education is known to be a clear factor of a smaller family size and declining fertility rate in South Korea. Passion for education has become a cause of social sicknesses in South Korea.

The education arms race, along with the lack of affordable housing, has brought about serious financial strains on the middle-income households in South Korea. Because of irrational spending on housing and education, along with other disadvantageous economic phenomena such as the slowing wage growth, the size of South Korea’s middle-income class is shrinking and many households are reportedly standing at the brink of imminent bankruptcy.

The younger Korean generation armed with higher education degrees have been growing in number making good jobs even scarcer due to increased competition. Educational accomplishment does not necessarily translate into long-term financial success anymore in South Korea.

According to a recent report released by the McKinsey Global Institute, “Beyond Korean Style: Shaping a New Growth Formula,” there is growing evidence that the higher education system in Korea is not delivering the expected results for students, parents and employers. The employment rate for South Korean college graduates was around 60 percent in 2012, which is lower than the 80 percent employment rate for students who graduate from vocational high schools. Furthermore, because of the high costs, the value of private education, in terms of lifelong earnings, is now in question. The net present value of lifetime earnings for a privately educated college graduate trails that of a worker with a high school diploma.

It is now time for educational innovation. Parents are advised to discard the old belief that admission to a top university is the only path to success for their children. The Ministry of Education is urged to consider revising the current college admission system. Colleges should make it easier for students to enroll. Benchmarking excellent vocational education system with those of other advanced nations is highly recommended. Students should be given more access to high-quality vocational resources and teaching, and internship opportunities. Employers in South Korea are urged to collaborate with schools to develop job-relevant curricula.

The younger generation of South Korea deserves good education. They are the hope of Korea’s future. They are entitled to draw and fulfill their own dreams. They shall not become victims of endless competition for elitism. They shall no longer be sacrificed for their parents’ face and honor.

Young students shall not be found dozing off on public transportation or in their classrooms due to sleep deprivation stemming from extensive after-school private lessons normally go on until late night hours. Their faces should be bright with dreams. Now, it is the time to curb the education arms race and save the nation from bankruptcy of the Korean middle class.

The writer is a chair professor of the Catholic University of Daegu. He previously headed the Foreign News Division of the Korea Overseas Information Service. His email address is shinhyungook@hotmail.com.