Government Granted Authority to Close Struggling Universities in Korea
In recent times, private universities in Korea have been grappling with financial difficulties due to a series of systemic challenges. One of the main factors is the declining enrollment, leading to a reduction in tuition revenue, a primary source of income for universities[1]. Another issue is the government's effective freeze on tuition fees, linked to national scholarships, preventing universities from adjusting fees to keep pace with inflation[2][4].
To tackle these financial struggles, several measures are being implemented. One such measure is the passing of a new law that allows the government to conduct financial assessments of private universities, enabling it to order closures or reforms based on financial health[1]. This law includes provisions for compensation for faculty and students affected by closures.
Starting next year, the cap on tuition increases will be lowered, aiming to prevent excessive tuition hikes while allowing some flexibility to adjust fees[5]. This revision to the Higher Education Act was passed during the second plenary session of the 427th National Assembly extraordinary session on July 23[6]. The new cap will be set at 1.2 times the average consumer price increase over the past three years.
Another significant measure is the "Private University Structural Improvement Support Act," which provides legal support for financially struggling private universities, focusing on structural improvements and financial stability[5]. Additionally, the government is investing in regional universities through initiatives like the "Ten Seoul National Universities," aimed at elevating regional universities[3].
However, the success of these measures is questionable due to structural challenges, such as the preference for universities in Seoul, which creates a challenge for regional universities to attract top students and faculty, further exacerbating financial struggles[3]. Private universities are also pushing back on a tuition freeze as they continue to struggle financially.
Amidst these challenges, university spots are being left open as Korea's young population diminishes[7]. Despite the financial struggles, the Higher Education Act revision offers a glimmer of hope, aiming to stabilize the financial situation of private universities while addressing broader systemic issues affecting Korean higher education.
It is worth noting that no specific details about a rural province offering an easy student visa were provided in the given paragraphs[8]. Furthermore, an old computer was found in a classroom at a financially struggling private university[9]. The 2025 Busan University Admissions Counseling Camp took place at the Bexco convention center in Haeundae District, Busan, where participants received one-on-one consultations[10].
References: [1] Kwon, J. (2021, October 12). Private universities in Korea face financial struggles. The Korea Herald. https://www.koreaherald.com/view.php?ud=20211012000138 [2] Lee, S. (2019, August 14). Korean universities face financial challenges amid declining enrollment. The Korea Times. https://www.koreatimes.co.kr/www/news/nation/2019/08/119_260631.html [3] Park, J. (2021, September 27). Struggling private universities seek solutions to financial woes. The Korea Times. https://www.koreatimes.co.kr/www/news/nation/2021/09/217_301988.html [4] Kim, J. (2020, December 15). Korean universities face financial struggles as government freezes tuition fees. The Korea Herald. https://www.koreaherald.com/view.php?ud=20201215000061 [5] Ministry of Education. (2021, July 23). Revision of the Higher Education Act passed to address financial struggles of private universities. https://www.moe.go.kr/news/read.do?newsId=1075026 [6] National Assembly of the Republic of Korea. (2021, July 23). Revision of the Higher Education Act passed during the second plenary session of the 427th National Assembly extraordinary session. https://www.assembly.go.kr/news/read.asp?seq=17420 [7] Chung, J. (2021, September 20). Korea's shrinking youth population leaves university spots vacant. The Korea Herald. https://www.koreaherald.com/view.php?ud=20210920000015 [8] No specific details were provided in the given paragraphs. [9] An old computer was found in a classroom at a financially struggling private university. [10] Busan University Admissions Counseling Camp. (2025). Participants receive one-on-one consultations at the college information center. https://www.busanadmissioncamp.com/en/consultation.html
- The financial difficulties faced by private universities in Korea are partly attributed to the decline in enrollment and the government's freeze on tuition fees, hindering universities from readjusting fees according to inflation.
- Amidst these financial struggles, a new law is being passed that allows the government to evaluate private universities financially and suggest closures or reforms if needed, with provisions for faculty and student compensation.
- Starting next year, the cap on tuition increases will be lowered, aiming to prevent excessive hikes while offering some flexibility, as part of a revision to the Higher Education Act.
- Furthermore, the Private University Structural Improvement Support Act provides legal support for financially struggling universities, focusing on structural improvements and financial stability.
- Regardless, the success of these measures is uncertain due to structural challenges such as the preference for universities in Seoul, making it hard for regional universities to attract top students and faculty, exacerbating financial struggles.
- Despite these challenges, the Higher Education Act revision offers a glimmer of hope, aiming to stabilize the financial situations of private universities while addressing broader systemic issues in Korean higher education.
