Private tutoring expenditure for elementary, middle, and high school students in South Korea declined by approximately 1.7 trillion won over the past year. Analysts suggest the domestic economic downturn has led to reduced demand for private education. Concerns are mounting over a widening "private tutoring gap," as the proportion of families spending over 1 million won monthly increased while those spending between 200,000 and 1 million won decreased.
The Ministry of Education announced on the 13th that private tutoring expenditure totaled 27.5 trillion won last year, down 5.7% from the previous year, based on a survey of 74,000 students across 3,000 schools nationwide. Given that total student enrollment fell 2.3% year-on-year to 5.02 million, the decline in tutoring spending outpaced the drop in student numbers. This marks the first decrease in private tutoring expenditure since 2020, when COVID-19 restrictions limited in-person contact. Spending had risen steadily from 2012 to 2019.
The private tutoring participation rate also fell 4.3 percentage points year-on-year to 75.7%. Average monthly spending per student dropped 3.5% to 458,000 won. By school level, high school students spent 499,000 won (down 4.0%), middle school students 461,000 won (down 5.9%), and elementary students 433,000 won (down 2.1%). Among participating students, monthly spending averaged 512,000 won for elementary (up 1.7%), 632,000 won for middle school (up 0.6%), and 793,000 won for high school (up 2.6%).
By subject, monthly spending among participants was highest for English at 281,000 won (up 6.2%), followed by mathematics at 270,000 won (up 8.7%), Korean language at 185,000 won (up 13.1%), and social studies/science at 166,000 won (up 13.8%). Participation rates were 84.4% for elementary, 73.0% for middle school, and 63.0% for high school students.
By tutoring format, participating students spent an average of 560,000 won monthly on academy classes, 452,000 won on private tutoring, 328,000 won on group tutoring, 135,000 won on online/distance learning, and 120,000 won on home-visit workbook programs.
A Ministry of Education official stated, "It is difficult to pinpoint a single cause for the decline in private tutoring expenditure. Beyond policy effects such as expanded elementary care and after-school programs, strengthened EBS educational content appears to have contributed to reduced demand."
Analysts point to the economic slowdown and shifting parental values as factors behind the decrease. South Korea's real GDP growth rate last year was just 1.0%, half of the previous year's figure. The prolonged construction industry slump, which significantly impacts the domestic market, continues to weigh on the real economy. Construction investment contracted 9.9% last year. Some analysts suggest that last year's domestic stock market rally triggered "FOMO" (fear of missing out), redirecting some tutoring funds toward capital markets.
Students cited supplementing school lessons (49.5%), advance learning (22.7%), and preparation for higher education (16.2%) as primary reasons for private tutoring.
Experts urge greater attention to the polarization trend than the overall spending decline. According to the data, average monthly spending among participating students rose 2.0% year-on-year to 604,000 won, roughly matching last year's consumer price inflation rate of 2.1%.
The proportion of families spending over 1 million won monthly increased 0.4 percentage points to 11.6%, while those spending between 200,000 and 1 million won decreased, indicating deepening polarization. In Seoul, 24.6% of students' families spent over 1 million won monthly on tutoring—more than double the national average of 11.6%—raising concerns about widening regional academic gaps. In contrast, only 4.4% of students in rural township areas spent that amount.
By household income, families earning over 8 million won monthly spent 662,000 won on tutoring, while those earning under 3 million won spent 192,000 won. Participation rates were 84.9% for households earning over 8 million won and 52.8% for those under 3 million won, revealing significant gaps by income level.
By academic performance, students in the top 10% spent 661,000 won monthly on tutoring—more than double the 326,000 won spent by those in the bottom 20%. Participation rates were 73.8% for top performers versus 50.1% for bottom performers.
Seoul recorded the highest per-student spending among participants at 803,000 won, while South Jeolla Province had the lowest at 454,000 won. Seoul led in participation rate at 82.6%, followed by Sejong (79.9%), Gyeonggi (78.5%), Busan (76.2%), and Daejeon (75.4%).
Lim Sung-ho, CEO of Jongro Academy, said, "The decline in total private tutoring expenditure appears to result from a combination of factors including falling student numbers, economic conditions, and a transitional period in the college admissions system." Lim added, "The current integrated liberal arts-science college entrance exam system is in effect, and starting with the 2028 academic year, elective subjects will be eliminated. Parents and students are struggling to navigate admissions strategies. Additional education policy changes are also expected at the elementary level. During this transitional period, private tutoring demand may have temporarily adjusted."
Lim further noted, "Statistics show a growing gap between families using private tutoring and those who do not. The decline in spending is particularly pronounced among lower-performing students and lower-income households, suggesting educational polarization could widen in future admissions outcomes."
