The 'Private University Restructuring Law' will take effect on August 15. The law aims to systematically manage the orderly exit and restructuring of private universities that have reached a critical point due to a significant decline in the school-age population. It is expected that universities facing financial difficulties or a sharp drop in enrollment will be the primary targets.
However, there are differing perspectives. Yoo Won-jun, chairman of the Korean Association of Private University Professors, which leads the national coalition of private university faculty, presents an alternative view. He cautiously suggests that the universities most likely to be affected by restructuring are not those with low student enrollment but rather those with rising real estate values that are considered 'lower-tier' institutions.
When asked about this reasoning, he explained that universities with increased asset values are more likely to exit first due to generational changes in management and practical calculations. Many private universities in South Korea have transitioned to management by the second or third generation. Unlike the first-generation founders, who had a sense of mission in education, the third-generation executives often view university operations as a burdensome obligation, lacking experience in outside business.
Furthermore, when considering the benefits of liquidation, the calculations become clear. Universities with minimal corporate assets find little benefit in liquidation. In contrast, those with rising real estate values can achieve significant economic gains by liquidating their assets while the value has increased.
Movements are already being detected on the ground. Some universities are gradually closing specific departments, reducing student recruitment, and reallocating assets by selling unused facilities or constructing revenue-generating buildings. While the education authorities apply a simplistic measure of 'financial difficulties,' private university corporations are reassessing the timing and methods of their exit based on real estate asset values.
This distorted restructuring trend is largely due to the failure of South Korean university policy to prioritize 'transparent information disclosure' while pushing for 'punitive forced restructuring.' The Ministry of Education has long pressured universities to reduce enrollment and undergo diagnostic evaluations but has not succeeded. Universities cannot be forcibly reshaped.
More seriously, the statistics and information that should serve as benchmarks are often distorted or inadequate. The Korean Council for University Education, responsible for university information disclosure, is not free from the interests of private university corporations, which limits the transparent processing of key information. The inability of the Ministry of Education's representative to provide clear answers about the precise educational expenses per student at Seoul National University during a presidential briefing last December also reflects the inadequacy of related statistics.
The tuition structure is also inherently imbalanced. In a reality where tuition from humanities and social sciences subsidizes deficits in arts, physical education, and engineering, accurate cost calculations and detailed expenditure statistics remain obscured. The underlying cause is a flawed policy structure that has focused on superficial buildings and regulations without investing in capable faculty.
Ultimately, for the 'Private University Restructuring Law' to succeed, the paradigm must shift from 'forced measures' to 'thorough information disclosure.' Universities that perform well should be granted autonomy, while underperforming institutions should be encouraged to exit naturally through market mechanisms. To achieve this, a system for transparently disclosing hidden data, such as the utilization of university corporation reserves, faculty investment status, individual faculty research achievements, and scholarship distribution criteria by department, must be established. Accurate information disclosure will naturally curb attempts by underperforming private universities to liquidate assets through loopholes.
The government and the Ministry of Education should focus on revealing the true capabilities of universities through verified data rather than acting as executioners tightening the noose around them. As the law's implementation approaches, whether it becomes a channel for cashing out private university assets or a healthy turning point for the higher education ecosystem hinges on the initial step of 'transparent data and information disclosure.'
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.