South Korean universities that are struggling to attract students may face closure as part of new restructuring plans unveiled by the Ministry of Education. The country’s declining population, particularly outside of Seoul, has led to a disproportionate impact on universities located in those areas. These universities, often referred to as “Zombie universities” due to their dire financial situations, have been spared drastic action by the government to avoid negative economic consequences for regions outside of Seoul. However, the Ministry of Education’s new measures aim to address the issue.
The government announced a drop in the overall population of around 20,000 in 2020, marking the first-ever annual population decline in the country. The main reason for this decline is the low fertility rate, with South Korea having the world’s lowest rate at 0.92 as of 2019. To address the decline in student numbers, the ministry plans to reduce student quotas for universities across the country and divide them into five new regions for higher education purposes.
Under the restructuring plan, 30% to 50% of all universities in the country will be asked to cut back on their current student quotas, as many institutions are struggling to fill their available spots. The freshmen enrollment rate fell to 91% of places in the previous year, and the government projects a further decline in the coming years, particularly outside the greater Seoul area. If the allocated student quota is not reduced, around 100,000 places may remain unfilled by 2024.
The new roadmap allows for planned university closures if institutions cannot turn their situations around. The government will first make recommendations to help universities remain viable, followed by ordering changes. If these measures fail, a procedure for liquidation of insolvent universities will be implemented. The details of student quotas for the five regions will be announced in October, and universities will conduct internal investigations and submit specific reform plans to the ministry by March 2022.
To assist struggling universities, the ministry will examine their finances, provide funding and advice, and recommend reductions in staff and student numbers. The plan also encourages universities to pool resources, share classes, professors, laboratories, and technology infrastructure. Hanyang University in Seoul, for example, has opened its hologram classes on artificial intelligence to six other universities.
Universities outside of Seoul have been hit hard by a combination of factors, including declining populations, fee freezes since 2009, and the COVID-19 pandemic leading to higher student dropout rates. Many universities are experiencing deficits, and the number of loss-making institutions has increased. Some universities have resorted to expensive marketing campaigns and scholarships to attract students but have faced difficulties in finding professors to teach certain subjects.
Previous government attempts to address the issue through evaluations and admissions quota cuts have not fully resolved the problem. The current restructuring plan aims to tackle the general shortfall of applicants and ensure the viability and competitiveness of universities. While only a small number of universities have been closed since previous restructuring attempts, the liquidation process has been challenging for some institutions.
In conclusion, South Korean universities that struggle to attract students, particularly those outside Seoul, face the possibility of closure under new restructuring plans. The declining population and other factors have created financial difficulties for many universities, prompting the government to implement measures to address the issue and ensure the long-term viability of higher education institutions in the country.
