KB News Desk
The government will soon be able to suspend admissions or order the closure of financially distressed private universities struggling with persistent enrollment shortfalls, following the Cabinet’s approval Tuesday of an enforcement decree governing university restructuring.
The decree, which takes effect Aug. 15, allows the government to provide consulting support to universities designated as financially distressed and, when recovery is deemed unfeasible, order restructuring measures, including closure.
Dissolving school foundations can receive part of the remaining assets as a liquidation payment or transfer the assets to a public-interest or social welfare foundation.
Safeguards were also introduced to reduce the impact of closures on students and employees.
Faculty and staff dismissed following a closure can receive compensation or retirement payments from the institution’s remaining assets. The decree also seeks to ensure that researchers are not disadvantaged in their academic or research activities after their institution closes.
Students will receive assistance in transferring to other universities. Those who choose not to transfer can receive compensation for the interruption of their studies, depending on the availability of remaining assets.
The Education Ministry told The Korea Herald that international students would be eligible for compensation on broadly the same terms as Korean students, although the amount could differ depending on their tuition fees.
The government will also operate a records management system for closed universities and issue documents such as graduation and employment certificates to former students and employees.
The ministry also said it would take a stricter approach to serious misconduct in the operation of private universities, including embezzlement, breach of trust and accounting fraud.
Those who fail to comply with corrective orders over the unlawful handling of school assets will be excluded from receiving liquidation payments.
Transfers of remaining assets to public interest or social welfare foundations will also be restricted when an executive of the intended recipient organization has committed serious misconduct or has a special relationship with the dissolving school foundation.
“With the enactment of the decree, we will work to establish a system that supports the restructuring and preemptive normalization of private universities, thereby strengthening the competitiveness of higher education and promoting the sound development of private universities,” Education Minister Choi Kyo-jin said.
