ID :
196360
Thu, 07/21/2011 - 17:35
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Shortlink :
http://m.oananews.org//node/196360
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Education minister vows to expand tax breaks on college donations
SEOUL, July 21 (Yonhap) -- The government is considering the expansion of tax breaks for college donations as part of efforts to help universities diversify their sources of revenue, Education Minister Lee Joo-ho said Thursday, amid growing calls for lowering costly education expenses.
"What we lack the most is donations," Lee Joo-ho said at a meeting with presidents of 16 alumni associations from throughout the nation.
His remarks come as there is a widespread consensus among rival parties over the need to cut college tuition fees to woo voters ahead of next year's major elections, though they are divided over to what extent to implement the cuts that would require an enormous budget. In South Korea, 80 percent of higher education institutions are operated by private foundations that rely heavily on tuition fees for revenue.
In 2009, private colleges collected 581.2 billion won (US$550 million) and state-funded universities raised 144.1 billion won, which is 2.3 percent and 1.9 percent of the total education budget, respectively, Lee said. The corresponding figure for American private colleges reach over 7 percent.
One of the measures planned by the government is to expand tax returns for individuals and companies to encourage them to donate more to higher education institutions, the minister said.
During the meeting, the alumni presidents asked the government to establish legal framework as a precondition for more college donations, while some suggested making scholarship program that benefit students depending on their financial situations.
"What we lack the most is donations," Lee Joo-ho said at a meeting with presidents of 16 alumni associations from throughout the nation.
His remarks come as there is a widespread consensus among rival parties over the need to cut college tuition fees to woo voters ahead of next year's major elections, though they are divided over to what extent to implement the cuts that would require an enormous budget. In South Korea, 80 percent of higher education institutions are operated by private foundations that rely heavily on tuition fees for revenue.
In 2009, private colleges collected 581.2 billion won (US$550 million) and state-funded universities raised 144.1 billion won, which is 2.3 percent and 1.9 percent of the total education budget, respectively, Lee said. The corresponding figure for American private colleges reach over 7 percent.
One of the measures planned by the government is to expand tax returns for individuals and companies to encourage them to donate more to higher education institutions, the minister said.
During the meeting, the alumni presidents asked the government to establish legal framework as a precondition for more college donations, while some suggested making scholarship program that benefit students depending on their financial situations.
