Education spending between haves and have-nots widens in Q2

SEOUL, Sept. 20 (Yonhap) -- South Korea's gap in education-related outlays
between haves and have-nots expanded in the second quarter as lower income
families cut back on spending to cope with the sluggish economy, a report by the
central bank said Sunday.
The report by the Bank of Korea (BOK) and the National Statistical Office said
while nominal expenditures on education gained just 2.1 percent on-year in the
three month period, those in the lower 20 percent of the income bracket spent 9.9
percent less.
The figure compares to those in the upper 20 percent income bracket who spent 9.9
percent more on education from April through June.
Upper income earners spent an average of 312,535 won (US$258.4) per month on
education for their children, while those in the bottom one-fifth spent 41,037
won, a 7.6 percent increase in the gap and the widest difference since 2003.
Spending on private education is not included in the tally.
Officials said that the overall gain in education related spending is the lowest
tallied since the data was first compiled in 2001. Nominal education related
expenditures have usually grown 8-10 percent annually, reflecting the country's
strong emphasis on education.
Such gains were curtailed, however, coming into 2009 as the South Korean economy
was hit hard by the global economic slump triggered by the collapse of Lehman
Brothers last year.
Reflecting the gap in education-related spending, the country's upper 20 percent
spent 22.6 percent more on-year on book purchases in the April-June period, while
lower income earners cut back on book-buying by 14.1 percent.
The latest tally, meanwhile, also noted that wealthier consumers spent more on
personal accessories like watches, automobiles and sports-related products.
The difference in spending on personal accessories widened 2.5 fold between the
top 20 percent and those in the lower 20 percent range. The gap in spending on
auto purchases also grew 8.5 times.
yonngong@yna.co.kr
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