The Importance of Liberal Arts Education and Market Failure

Despite the numerous uncertainties, Korean universities are prioritizing early specialization in education rather than focusing on the aim of the college education. The purpose of the study is to demonstrate that the return to education rises in an unstable environment, and that this education premium is closely related to the liberal arts education. Additionally, it provides a brief overview of the history of liberal arts education in Korea and assesses the current status and challenges. Finally, it proposes measures for improvement. Although the aim of liberal education extends beyond merely improving labor market outcomes, the liberal education indeed contributes to better performance in the labor market. The return to college education is high worldwide and it tends to increase as environments, including technology, change rapidly. This is because individuals with more schooling are better equipped to quickly capture the economic rents that arise from the disequilibria. This ability is cultivated more effectively through the liberal education than through the specialized training. The rise of the United States as a global superpower by focusing on the general education and numerous other empirical studies supports this perspective. The “5.31 Education Reform” in Korea, however, led to a contraction of basic academic disciplines, a decline in the academic quality of liberal arts education, and the erosion of the curriculum's universality. These issues stem primarily from the inherent characteristics of the education market, which has the characteristics of public good as well as the externality. In addition, misperception on the value of liberal arts education have exacerbated the situation. To address the market failure, it is crucial to rectify the perception of liberal arts education among educators. Moreover, high academic quality of liberal education must be preserved, and the universality of the liberal education curriculum should be maintained.