Investment in AX—the AI transformation of universities—has emerged as a major concern in education, but universities appear unable to pursue it using only their own resources. In a survey conducted by the Korean Council for University Education (KCUE) of presidents at 192 member universities, 144 institutions responded, and not one said it could fully fund AX investment independently.
41% of Universities Have Made AX Investment Plans
In the KCUE survey, 59 universities, or 41.0%, said they were specifically developing and pursuing plans to invest in AX within the next three years. By contrast, 80 universities, or 55.5%, said they had been unable to establish or pursue such plans.
The responses on funding conditions were even clearer. A total of 127 universities, or 89.4%, said that less than half—or only a very small portion—of their AX investment could be funded independently. Government and local-government financial support programs were also selected as the area of greatest current interest by university presidents, with 115 institutions choosing that option.
The need for AX investment has been confirmed, but universities do not currently have sufficient capacity to secure the necessary funding.
The KCUE said that expanded government transfers to the Special Account for Higher and Lifelong Education Support, along with stable and structural funding expansion, were necessary. At the summer university presidents’ seminar held in Jeju on August 28, presidents also urged the government to support AI infrastructure and increase investment in higher education.
Reform of Local Education Finance Grants Also Draws Attention
At the same time that universities were calling for greater higher-education investment, debate continued over reform of local education finance grants. According to related reports, the government publicly presented a direction for replacing the automatic linkage of grants to 20.79% of domestic tax revenue with a system that reflects economic growth rates and changes in the school-age population.
The safeguards presented by the government reportedly included preventing the total grant amount from falling below the previous year’s level and using a future-response fund to provide resources for primary and secondary education. However, these points represent a reform direction disclosed through media reports and do not mean that the policy has been finalized through legislative amendments or implementation measures.
The Ministry of Planning and Budget explained on August 13 that no specific details had been decided regarding reform of the local education finance grants. The Ministry of Education also took the same position in an official explanatory document.
Education Community Raises Concerns About Cuts
Education groups argued that it would be difficult to reduce grants and education funding based solely on the decline in the student population. According to a Yonhap News report, the number of primary, middle, and high school students fell by approximately 17% over the past decade, while the number of classes decreased by only about 1%.
The Gangwon Teachers’ Labor Union issued a statement on August 28 calling for an end to efforts to reform the grants by reducing them, the securing of separate funding, and a public deliberation process involving education stakeholders.
The university presidents’ call for expanded higher-education funding and the Gangwon Teachers’ Labor Union’s opposition to reform of the grants emerged during the same broader debate over education finance. However, no evidence has been confirmed that they originated from the same meeting or a single policy decision. The key point currently supported by the available information is that calls are growing for stable funding for AX and higher-education investment, while primary and secondary education groups have raised concerns about the impact that changing the grant calculation method could have on education finance.
What Can Be Confirmed Now
- Universities able to fully self-fund AX investment: 0
- Universities developing and pursuing AX investment plans for the next three years: 59, or 41.0%
- Universities able to fund less than half, or only a very small portion, independently: 127, or 89.4%
- Specific details and implementation status of local education finance grant reform: Not officially finalized
This issue is an example of higher-education funding expansion and reform of the funding formula for primary and secondary education receiving attention at the same time. However, the actual funding scale and implementation schedule require further monitoring to determine whether they are confirmed in future bills, budgets, and official documents.