Korean families spend a tenth of disposable income on private tutoring

The financial burden

The financial allocation for after-school instruction happens across the demographic spectrum, reflecting an entrenched system where private tutoring is seen as a mandatory baseline rather than an optional supplement. The Organisation for Economic Co-operation and Development tracks these costs, noting that monthly average expenditure for private tutoring per student is steadily growing, and had reached roughly 10% of average household disposable income in 2024.

This high level of private expenditure places a heavy burden on household finances. The root cause of this spending is a highly segmented employment landscape. The Organisation for Economic Co-operation and Development connects this spending to broader economic structures, observing that the dual labour market also leads to excessive competition among young people to enter prestigious universities and thereby secure good jobs.

The university premium

The economic incentives to win this race are stark, as entering a top-tier institution yields immediate and long-term financial advantages. The Organisation for Economic Co-operation and Development reports that elite graduates earn 24.6% more than graduates from bottom-tier universities at the time of labour market entry in Korea.

This financial advantage is not limited to the start of a career but compounds as individuals progress through the labour market. The Organisation for Economic Co-operation and Development finds that the wage gap peaks at 50.5% between the ages of 40 and 44. With such a wide divergence in lifetime earnings tied to university admission, families face immense pressure to finance whatever preparatory advantages they can afford.

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Source institutions：OECD

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