A recent report on South Korea’s hyper-competitive university admissions has highlighted the significant role of parents’ economic status and residential location in admission patterns and calls for an overhaul of the national university admission system.
The findings, in a Bank of Korea (BoK) report, revealed that the country’s top-performing students come from families that can afford to live in areas known for their strong educational institutions and who invest heavily in private out-of-school classes at cram schools.
The report, Social issues caused by excessive entrance exam competition and countermeasures, found that students from families in the top 20% income bracket were 5.4 times more likely to get into prestigious Korean universities than those from the bottom 20%.
To address these stark inequalities, which favour families living in the capital Seoul, the BoK report proposes a nationwide “regional proportional admission system” which would allocate places based on the proportion of eligible students in each region and reduce the advantage of having schooled in Seoul.
The proposed quota system, already used by some universities, would be expanded to include the most prestigious universities, the bank said in its report.
“If universities voluntarily set aside a majority of their admissions seats to reflect the proportion of the school-age population in each region, they can reduce disparities caused by income and geographic factors and increase the admissions rate so that it accurately mirrors students’ potential,” the report stated.
A ‘perfect storm’
Presented at a 27 August symposium titled “Regional Balanced Development Policy and Paradigm Shifts in Education Policy” co-hosted by BoK and the National Strategy Institute of Seoul National University (SNU), the report attributed about 75% of the difference in university admission rates to the “economic power of parents” and only 25% to a student’s own potential.
During the symposium, Kim Jun-ki, director of SNU’s National Strategy Institute, warned of a “perfect storm” caused by the concentration of resources in the capital, leading to imbalanced growth between Seoul and other regions and even the risk of “regional extinction” as more and more people move to the capital.
The study highlighted stark disparities between Seoul and areas outside the capital, particularly in admission rates to SNU.
Quoting figures from a 2018 cohort survey, the report notes that 92% of the gap between students specifically resident in Seoul and those from outside the capital was linked to what the study called the “residential area effect”, encompassing factors like parental income and the prevalence of private education.
While only 16% of the country’s school leavers were from high schools in Seoul, 32% of SNU students came from the capital. Among them, 12% were from the affluent Gangnam area, known for its high concentration of private tutoring establishments.
The research also pointed to significant differences in spending on out-of-school tutoring between Seoul and other regions.
In 2023, the families of high school students in Seoul spent 1.8 times more on private out-of-school education than those in rural areas. Within Seoul, high-income households (earning over US$6,000 per month) spent 2.3 times more on out-of-school education than low-income households earning less than US$1,500 per month.
Notably, low-income households in Seoul spent over 27% of the household’s income on out-of-school classes, imposing a substantial financial burden, particularly for families with several children.
Regional Admissions System
According to the bank, a nationwide regional proportional admission system could reduce the gap between actual and potential university admission rates by 64%, more closely reflecting students’ true abilities.
The BoK team emphasised the need for bold approaches to break away from the current competitive disequilibrium.
Under the proposed “regionally proportional” system, universities would voluntarily allocate most places based on the regional population of qualified students while retaining autonomy over selection criteria and methods.
The report also suggested that diversifying the student body at universities would not only enhance individual development but also foster a more inclusive and equitable society.
Evening out entrance exam competition across the country could also help to alleviate other social and economic issues such as the population concentration in Seoul, rising housing prices owing to demand, and low birth rates often attributed to the high cost of educating children.
BoK Governor Lee Chang-yong backed the regional proportional admission system, arguing it could have a more significant impact on stabilising house prices in the capital than adjusting interest rates.
He called on university leaders to take decisive action, suggesting that such reforms could help break the cycle of endless demand for education in Seoul and the resulting “Gangnam real estate myth” which sees parents of school-age children actively seeking to purchase or secure a long lease on homes in the Gangnam district, perpetuating the view that moving to Gangnam is an investment for the future.
Support for low-income families
During the August symposium, Kim Hyun-chul, associate professor at Hong Kong University of Science and Technology’s Economics Department, also supported a regional proportional admission system, which he said would mitigate the “lost-Einsteins” phenomenon whereby individuals with academic potential are held back by economic and educational inequalities.
However, he said a proportional system would not address underlying issues and stressed that direct government support for low-income families should accompany such a policy.
“Low-income children cannot thrive because their parents lack the resources to invest in their education,” he said, adding: “It is the government’s responsibility to assist these families.”
Kim also referred to the 2022 World Inequality Report on wealth distribution, noting that labour market reforms would make regional proportional admissions more effective.
According to the inequality report, the income share of the top 10% in South Korea has steadily increased since the 1990s, while the share of the bottom 50% has declined. Specifically, among the top 0.1%, 29% were corporate executives, 22% were doctors, and 20% were finance professionals, with the remaining 29% inheriting their wealth.
Multi-dimensional approach
Kim Sung-eun, associate professor at Sejong University’s Economics Department, noted the proposed policy would benefit top-performing students from rural areas, who are likely to be children of relatively affluent and well-educated parents.
He emphasised the need to thoroughly investigate which groups would benefit from the policy and called for a ‘multi-dimensional’ approach to ensure marginalised groups were adequately considered.
Kim also noted that structural socio-economic issues, such as income inequality, could be difficult to address with university admission policies alone.
On 29 August, two days after the symposium, South Korean President Yoon Suk-yeol underscored balanced regional development as a solution to South Korea’s population problems.
Addressing key issues such as pensions, healthcare, and the low birth rate, Yoon stated: “Ultimately, regionally balanced development that mitigates the [population] concentration in the capital region is the fundamental solution to our population problem.”
He pointed to the need to improve conditions such as education and healthcare to attract people and businesses to regional areas. “It is crucial that children can receive a good education outside of Seoul,” he said.
2024 University World News
