Evaluation of Early Childhood Education and Childcare Support Program to Overcome Low Fertility

Published on August 22, 2024
Published by Social Administrative Program Evaluation Division, Budget Analysis Department

   To overcome the low fertility, the government is reinforcing its commitment to education and care by enhancing support for early childhood education and care (ECEC). Its recent plan involves the ongoing promotion of ECEC integration to ensure that all infants and toddlers receive high-quality services, regardless of the institution they attend. This report assesses the current performance of early childhood education and care support programs in advance of the full-scale integration efforts. It also provides recommendations for effectively advancing the ECEC integration, based on an analysis of existing challenges. The main sections of this report are as follows:
   Firstly, while support for ECEC has increased the utilization rates of kindergartens and daycare centers and alleviated some of the burdens on parents, there are still gaps in meeting the demand for public education and childcare services. The government is working to enhance the public nature of early childhood education and care by expanding national and public daycare centers and kindergartens. However, as of 2023, the actual utilization rates of national and public kindergartens and daycare centers are 29.3% and 28.3%, respectively, falling short of the 40% target set in the “Basic Plan for Early Childhood Education Development (2018-2022)” and the “Third Mid- to Long-term Childcare Basic Plan (2018-2022).” Additionally, despite the promotion of the Nuri Curriculum to ensure equal opportunities for early childhood education, the persistent dual structure of kindergartens and daycare centers was a limitation in reducing disparities by facility type and region.
   Secondly, given that the budget for early childhood education and care (ECEC) is sourced from various financial entities, coordination between these organizations is crucial for effective financial support of ECEC integration. As of 2023, the total ECEC budget is 17.4 trillion won, with 3.5 trillion won allocated to the Nuri Curriculum through the Ministry of Education’s Early Childhood Education Support Special Account and 13.9 trillion won allocated to other education and care support through the Ministry of Health and Welfare, local governments, and the local Education Office. To implement the ECEC integration, the Ministry of Education intends to consolidate local government-supported childcare budgets into the local Education Office while continuing to provide support. However, it is essential to carefully assess whether the 2.1 trillion (as of 2023) won previously managed by local governments as autonomous programs can be seamlessly transferred to the local Education Office under the same conditions.
   Thirdly, the "ECEC Integrated Implementation Plan" does not include budget estimates or methods for securing the necessary financial resources for its proposed tasks. For example, improving the teacher-to-infant and toddler ratio is estimated to require at least 1.5 trillion won, and gradually introducing free education and childcare is projected to need approximately 2 trillion won. Consequently, the government must evaluate the budget requirements for each task and establish concrete strategies to secure the required financial resources.
   Fourth, a comprehensive review is needed regarding several aspects of the field, including the qualifications and treatment of integrated kindergarten and daycare teachers, as well as teachers' pension. Delays in addressing critical issues, such as the reform of qualifications and training systems for integrated teachers, could lead to confusion in the field. Therefore, detailed and clear guidelines are essential. Additionally, while the government plans to transition daycare teachers to a teacher status and allow them to join the teachers' pension scheme selectively, this could potentially lead to increased pension financial expenditures in the mid- to long-term.