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 Since 2000, there are 16 universities that have been closed in Korea. Last year alone, four universities, including Daegu University of Foreign Studies and Hanzhong University, were closed down. The Ministry of Education (MOE) announced that 38 private universities will be closed by 2021. Accordingly, university closings in Korea will continue in the future. However, concerns have been raised due to the lack of measures to prepare for the aftermath.


Purpose of University Closure

 Last November 15, the National Assembly held a forum discussing countermeasures for managing aftermath of school closing. In the forum, corrupt universities were stated to be the ones with the highest possibilities of closing down. However, Gu Ja-oek, the president of Seokyung University Graduate School, said, “Corruption is a crime. It cannot be a major reason of school abolition. We have to root it out.”

 The reason why there are so many universities in Korea is its “normativsystem” (criteria-based) for establishing a university that was introduced in 1995. With the system, if only certain criteria were met, a university could be established. By 2010, 38 universities and 37 graduate schools had newly emerged. In contrast, the number of university students has been in decline. According to the Korean Educational Development Institute, in 2008, the number was 480,000 but dropped to 400,000 in 2017.

 President Gu said, “There are too many universities in Korea. The problem is that there is no corresponding number of students available.” Moreover, tuition is the principal source of revenue for Korean universities. As a result, the small number of students makes it difficult for schools to operate. Thus, they have no choice but to rely on government support. President Gu added, “It is necessary to reduce the number of universities and provide proper support to the remaining. After all, the only solution is school abolition.” However, for a desirable school closure, not only the process but also the following problems of it should be contemplated.


Aftermath: Shaded Side of School Closure

 Currently, when a school is closed, all students are available to apply for special transfer to nearby universities. However, according to a 2014 report released by Kim Tae-nyeon, a member of the Democratic Party of Korea, the transfer rate of students from closed schools was only 44%.

 In fact, university professors and employees are also directly affected by school closure. In the case of Hanzhong University, only six professors have been appointed to other universities. According to Kim Han-soo, a professor in the Department of Business Administration at Kyunggi University, faculty members can receive a private school pension, but only if they have made pension payments for 10 years or longer. Prof. Kim explained, “Therefore, those who do not get a pension suffer from financial difficulties. And the short period of the pension payment is another problem.” Furthermore, part-time lecturers are not eligible to benefit from the pension fund.

 The MOE reported on the current status of delayed wages for faculty members of closed universities. The data shows that the total amount of unpaid wages exceeded ₩80 billion in 2018. The reason for overdue payment of wages is related to the delay of liquidation procedures, which is another problem with closing schools. Prof. Kim said, “The last step of the liquidation process is to sell the property. But it is very difficult because a closed school usually has a low property value.” The point is that overdue wages will not be paid until the liquidation process is completed. According to Prof. Kim, seven schools that were closed in February 2008 have not yet been liquidated due to their unsold assets. Ultimately, the aftereffects of school abolition are closely connected to each other.

 If closed universities stay unsold for a long time, neglected facilities will age and eventually be demolished. Therefore, the property will become even more useless because all cashable assets disappear. Prof. Kim added, “It also destroys the business district near the university.” Since Seonam University was closed last February, 35 out of 40 shops and 30 out of 58 studio-apartment buildings around the school have shut down, and the vacancy rate is more than 80%. However, the problem does not stop there. There is a risk of urban flight taking place in the location of closed schools and the nearby area becoming a dead city.


Handling University Closure and its Future

 A revision to the Private School Law was approved by the Assembly plenary session on last December 27. If a school corporation that committed irregularities is ordered to close its school, its assets will all be confiscated by the government. However, Prof. Kim said, “Even then it should be possible to secure cash through the sales of real estate. Due to the difficulty of selling property, this policy is not likely to be a solution to overdue wages.” The MOE also announced a new plan to establish a comprehensive management center for closed schools. It will pay overdue wages with national funds provisionally, and retrieve funds later through the sales of a closed school’s property. Unfortunately, Prof. Kim said, “The Ministry of Strategy and Finance has drastically cut its budget for the operation of the center, making the plan impossible.”

 Prof. Kim added that offering proactive management is also important in university abolition. In the case of Japanese universities, each management status is classified as being in the ‘normal’, ‘preliminary’ or ‘warning’ stage. Prof. Kim suggested Korea may also introduce this method, saying further, “Universities facing closure should consult with local governments in advance to minimize the collapse of the local economy.” In the midst of this, President Gu suggested the direction in which universities in Korea should move. He emphasized the need for a financial expansion for universities. “The way of it is that universities should be well-associated with the industry. Universities should not be standing alone. They have to contribute to social development and gain benefits from society in return,” said President Gu.

 Policy changes are now being initiated on issues of school closure. However, compared to the impact that closed universities have brought on our society, the response is still in the beginning stage. Closing of some universities is a necessary step for further development, but it should be recognized that failure to solve related problems could cause a decline of the whole society.



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