Inflation expected to drive up college tuition next year

An average increase in private university tuition will be 420,000 won if inflation rise to the government’s estimate of 3.5 percent, according to the University Education Research Institute, a private research center centered on university policies.

According to the analysis, the average tuition for private universities will rise to as much as 7.94 million won in 2024 if universities raise tuition to the statutory limit. This will be up 420,000 won from the average tuition for private universities in 2022 (7.52 million won).

By department, tuition for medical schools will rise to 11.07 million won; art and sports majors to 8.74 million won; natural science department 8.24 million won; and liberal arts and social studies department to 6.88 million won. This year’s tuition has not been finalized, as each university is still deliberating on tuition rates.

The Higher Education Act stipulates that universities may increase tuition up to 1.5 times the average inflation rate of the preceding three years. Inflation has continued to increase since last year, and the inflation rate in January reached 5.2 percent. As a result, the tuition increase rate which was capped at 1.65 percent last year has risen to 4.05 percent this year. The institute predicted that the upper limit of the tuition fee increase would rise to 5.55 percent next year. This will drive more and more universities to raise tuition to the statutory limit even if they do not win the government’s scholarship support.

The institute also predicted that if the annual inflation rate stands at 2.5 percent from 2024, the average tuition for private universities may rise as much as to 9.4 million won in 2028. “The government must ramp up assistance for universities in the face of financial crisis to minimize tuition increases,” the institute said.


Sung-Min Park min@donga.com