A wave of tuition increases at South Korean private universities this semester has emerged as a key driver of inflation. (Image courtesy of Yonhap)
SEOUL, April 8 (Korea Bizwire) — A wave of tuition increases at South Korean private universities this semester has emerged as a key driver of inflation, with fears mounting that more institutions—particularly public ones—may follow suit in 2026, deepening financial strain on students and households.
According to government data, tuition hikes at nearly 70% of four-year universities, including 90% of private institutions in the Seoul metropolitan area, contributed to a 2.9% year-on-year jump in education-related inflation in March. This marked the sharpest increase since February 2009 during the global financial crisis.
The surge comes after years of government pressure on universities to freeze tuition in exchange for access to the National Scholarship Type II, a program introduced in 2012.
However, after 17 years of static rates and mounting financial stress, many universities are now concluding that modest hikes—within the legal cap of 5.49%—are more financially viable than continued participation in the government’s support program.
Among the 131 universities that raised tuition this year, most increased rates by 4% to just under 5.5%. These increases are expected to weigh on the Consumer Price Index through early 2026, given how year-on-year inflation is measured.
The inflationary impact of tuition increases may not end here. While only 11 national and public universities (28.2%) raised tuition in 2025, a growing number are expected to follow in 2026. Internal discussions within the Ministry of Education reveal that existing policy tools to discourage such moves have become increasingly ineffective.
Observers are also watching the 25 private universities that held off on tuition hikes this year. Many are believed to be waiting for the outcome of the upcoming presidential transition in June, following the removal of former President Yoon Suk-yeol. The incoming administration’s stance on higher education funding could be a decisive factor.
Some experts note that the legal cap on tuition increases may fall in 2026, potentially limiting universities’ ability to raise fees. Under the Higher Education Act, tuition hikes cannot exceed 1.5 times the average inflation rate over the past three years. The cap rose from 4.05% in 2023 to 5.64% in 2024, before edging down to 5.49% in 2025.
“If the cap drops significantly next year, it may become more attractive for universities to freeze tuition and retain access to government scholarships,” said one education policy analyst. “Institutional decisions will likely vary based on their individual financial outlooks and the government’s policy direction.”
Ultimately, how far tuition hikes spread next year will hinge on the new government’s approach. Should the incoming administration prioritize university financial stabilization with aggressive funding policies, it could curb the momentum behind further increases. Without such intervention, however, higher education may continue to fuel inflation well into 2026.
M. H. Lee (mhlee@koreabizwire.com)
