No Surprise Here, Koreans Top Spenders in Education
Koreans are by far the biggest educational spenders in the world according to the Korea Times.
South Korea topped the list of household educational spending to total consumption expenditure among the 30 OECD countries, with a ratio of 5.8 percent in 2003.
According to the 2004 National Accounts of OECD Countries, Korean households were quite active compared to major advanced nations in their spending on child education.
Economists attributed the highest educational expense ratio in Korea to the increasing number of students studying abroad and students attending private institutions after school.
The costs of studying abroad have skyrocketed over the past few years. The average overseas spending on education has climbed around 100 percent from three years ago.
According to the Bank of Korea, Korean students spent $1.85 billion on tuition and living costs while studying overseas in 2003. The amount stood at below $1 billion in the late 1990s and 2000.
Overseas spending by Korean students has been rising steadily since the 1998 financial crisis _ $829 million in 1998, $955 million in 1999, $957 million in 2000 and $1.07 billion in 2001.
The central bank also said the average amount Koreans spent on educational expenses reached an all-time high at 462,000 won in 2003, up 11 percent from 418,000 won a year ago.
“Contrary to heavier spending on educational and medical purposes, Koreans are reducing their expenses on public service fees, including transportation fares,” the BOK official said.
This is no surprise with the amount of money Koreans spend to send students to private academies (hagwons) in the evenings and weekends to learn bad English.
