South Korea Invests Heavily in Education with Less Corruption
South Korea's Education Investment as a Model for Development
South Korea's remarkable economic growth has been significantly influenced by its substantial investment in education. According to Byung Koo Cho, chairman of the Korea Economic Cooperation Institute and visiting senior fellow at the Korea Development Institute, the country's success stems from prioritizing education more than any other nation.
At a lecture held at the Global Knowledge and Development Center, Mr. Cho emphasized that while no single education system is superior, South Korea has consistently outspent other developed countries on education. "Education is vital for any country," he said. "Even advanced European nations require continuous educational investment because the world and technology are constantly evolving."
The Ministry of Education’s 2025 budget proposal was set at 104.9 trillion won, which accounts for 15.6% of the total budget. This represents an increase from 9.8 trillion won in 2024, or 14.6% of all spending. In comparison, OECD countries typically allocate around 10% of their government budgets to education.
Mr. Cho highlighted that South Korea’s literacy rate has risen dramatically, from nearly 80% illiteracy in 1945 to almost 100% today. However, he pointed out a significant challenge: the disproportionate funding allocated to secondary education. "We need to redirect this funding towards tertiary education," he explained. "Transferring resources from secondary to tertiary education is difficult, but necessary to transform our educational system."
According to the OECD, South Korea spends $21,476 per student from primary to post-secondary non-tertiary education, one of the highest amounts among OECD countries. However, public expenditure per tertiary student is comparatively low at $6,617, less than half the OECD average of $15,102.
Mr. Cho also noted that the impact of education on a country's gross domestic product takes time to materialize. "Investment in education must be accompanied by the right strategies and proper job opportunities for students," he said. "The government plays a crucial role in ensuring that education, jobs, and national development are aligned. Education is the key to everything."
Lessons for the Philippines
While the Philippines has legally committed to making education its top spending priority, the effectiveness of this investment is often undermined by corruption. George T. Barcelon, chairman of the Philippine Chamber of Commerce and Industry, stated that corruption is deeply embedded in the country's education system. "Improvements in policy and execution are essential," he added.
In the General Appropriations Act 2025, the Department of Education received P782 billion from the P6.326-trillion national budget. Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., noted that education has long been the largest budget allocation. However, he emphasized that due to limited fiscal space, greater private sector involvement is needed.
"An investment approach, given the limited government financial resources, would provide the greatest benefit to the economy through faster growth and more development, especially in rural areas," Ricafort said. He also highlighted the importance of investing in education to maximize the productivity of the Philippines' population, which exceeds 114 million and ranks as the 12th largest globally.
"Education is the big equalizer. It can lift more people and their families out of poverty, particularly the poorest," he added. However, Ricafort stressed that education investment should be paired with spending on nutrition to ensure students complete their studies and do not drop out.
He also recommended a focus on STEM (Science, Technology, Engineering, and Mathematics) and other courses that align with local and global employment needs. "Prioritizing these fields will help bridge the gap between education and the job market," he concluded.
