Korea's education costs jumped 11 percent last year, with the growth far exceeding an increase in total household spending that tapered off amid the nation's debt overhang.
Figures from the Bank of Korea showed that households spent 380.2 trillion won ($332 billion) in 2003, up just 1.8 percent from 373.4 trillion won in 2002.
From the total, 22.2 trillion won was spent on education, with the amount representing an 11.2 percent rise from the 19.9 trillion won spent in 2002. The faster pace pushed up the portion of education costs to overall household spending from 5.3 percent in 2002 to 5.8 percent last year.
Per capita education costs also ballooned 10.5 percent from 418,000 won to 462,000 won.
After temporarily dipping in 1998 in the aftermath of the nation's currency crisis, the per capita education spending has stayed on an upward path, rising from 318,000 won in 1999 to 338,000 won and 384,000 won, respectively, during the subsequent two years.
Along with education, Koreans also increased their medical and health care spending 6.6 percent to 16.9 trillion won in 2003. Per capita health care costs totaled 354,000 won, up 6 percent from a year earlier.
By contrast, people scaled back their spending on communications and transportation, reflecting depressed consumer sentiment.
Communication costs, such as spending on broadband Internet access and cellular phone services, took a downturn last year, averaging 429,000 won per person, down 6.1 percent from 457,000 won in 2002.
Before, the per capita figure continued to gain driven by the nation's booming Internet and mobile industries, jumping from 182,000 won in 1997 to 421,000 won in 2001.
Transportation costs also declined, averaging 875,000 won per person, versus 897,000 won in 2002, whereas per capita spending on cigarettes and alcohol rose from 182,000 won to 188,000 won.
Korea's private spending remained weak throughout 2003, as a credit boom left one in 10 people aged 15 or older unable to meet their debt obligations.
Sluggish consumer spending, together with anemic corporate investment, sent the nation's economic growth to a five-year low of 3.1 percent in 2003.
(jihoho@heraldm.com)
By Kim Ji-ho
