The primary purpose of this study is to develop system modules of school buildings and the seismic loss function of the system modules for regional loss assessment of school buildings. System modules of school buildings were developed through statistical analysis of school facilities in Korea. The structural system of school buildings with non-seismic details is defined as reinforced concrete with partially masonry walls (RCPM), and 27 system modules of RCPM were developed considering the number of stories, spans, and the age of the building. System modules were designed to assess the structural behavior by applying the shear spring model and the shear failure of the columns of the school building. Probabilistic seismic demand models for each component of system modules were derived through nonlinear dynamic analysis to determine the relationship between seismic intensity, drift ratio, and peak floor acceleration of system modules. The seismic loss function was defined as the total damage ratio, which is the ratio of replacement cost to repair cost to evaluate the seismic loss quantitatively. The system module-based seismic loss well predicted the observed data. It will be possible to help many stakeholders make risk-informed decisions for a region through the regional loss assessment of school buildings in Korea.