Household spending on education reaches record 40 tln won in 2008

SEOUL, March 29 (Yonhap) -- Despite deepening economic difficulties, South Korean
household spending on education surged to a record of nearly 40 trillion won
(US$29.6 billion) last year, with spending on private education accounting for
about half that amount, the nation's central bank said Sunday.
According to data released by the Bank of Korea, domestic households spent a
total of 39.8 trillion won on both public and private education in 2008, marking
a rise of 7.7 percent from 36.7 trillion won a year earlier.
South Korea's economy grew just 2.2 percent last year.
The data showed that South Koreans were reluctant to tighten their belts on
education, even while the economy grew at its weakest pace in a decade.
The South Korean economy was battered in 2008 by the beginning of the global
financial crisis, with slumping demand for the nation's exports sparking a rise
in unemployment and dampening consumer spending.
The increase in education spending was led by private programs such as
after-school, subject-focused academies and English-language learning institutes,
the central bank said.
Last year, spending on private education rose by 1.3 trillion won to 18.7
trillion won.
"Spending on education became an even larger financial burden on households last
year," said Jeong Young-taek, head of the national income team at the Bank of
Korea.
The nation's per-capita gross national income fell to $19,231 last year from
$21,695 in 2007, according to the central bank.
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