Establishing Regional Standards to Reduce University Enrollment Quotas... Introduction of 'Enrollment Suspension Quota System' and More

Ministry of Education Announces 'Systematic Management and Innovation Support Strategy for Universities'
Sets Regional Maintenance Enrollment Rates, Recommends Reduction for Up to 50% of Universities
Financial Support Restricted if Not Complied, Risk Universities Classified into 3 Levels with Closure Orders
Improves Undergraduate-Graduate Enrollment Adjustment Ratios, Introduces Enrollment Adjustment for Universities under the Same Corporation

[Asia Economy Reporter Han Jinju] The Ministry of Education has decided to set maintenance enrollment rate standards by region to prevent the shortage of new university students caused by the decline in the school-age population. If universities' self-adjustment plans fall short of the standards, reductions will be recommended, and financial support will be suspended if they do not comply. Instead, incentives such as improving the quota adjustment ratio between undergraduate and graduate schools, implementing a reserved enrollment quota system, and allowing quota adjustments between universities under the same corporation will be offered.

On the 20th, the Ministry of Education announced the "Systematic Management and Innovation Support Strategy for Universities." The Ministry plans to promote policies that induce restructuring for marginal universities and encourage universities receiving financial support to maintain an appropriate scale while making quota adjustments more flexible.

Shortage of 40,000 New Students This Year... More Severe in Non-Capital Areas and Junior Colleges

According to the Ministry of Education, as of March, the enrollment rate for new university students in the 2021 academic year was 91.4%, with a total shortfall of 40,586 students. Among the universities with shortfalls, 75% were located outside the capital area, and by type, junior colleges accounted for 59.6%. Enrollment rates were lower in junior colleges than in general universities, and lower in non-capital regions than in the capital area. The new student enrollment rates were ▲Capital area general universities (99.2%) ▲Non-capital area general universities (92.2%) ▲Capital area junior colleges (86.6%) ▲Non-capital area junior colleges (82.7%), in that order.

The worsening shortage of new students can be attributed to the decline in the school-age population. As those born in the 2000s, when ultra-low birth rates began, started entering universities, the pool of potential university entrants sharply decreased. Especially from this year through the 2024 academic year, the phenomenon where the university entrance age population (age 18) falls short of the admission quota is expected to accelerate. Assuming the university admission quota remains at 474,000 this year, the number of entrants in 2024 (373,000) is expected to be short by about 100,000.

Closure Orders for At-Risk Universities, Voluntary Reduction Encouraged for Financially Supported Universities

The Ministry of Education will take strong measures for restructuring failing universities in connection with university financial support projects. Financially restricted universities will face limitations on general financial and special purpose project support, and innovation will be promoted through restrictions on national scholarships and student loans. Furthermore, if financially at-risk universities are deemed irrecoverable, closure orders will be issued. Starting next year, universities will be evaluated based on their financial statements, and at-risk universities will be classified into three stages according to the level of financial crisis. Closure orders will be issued if corrective actions are not implemented or recovery is impossible. To facilitate closure and liquidation, a liquidation loan fund prioritizing unpaid wages and an integrated management system for disposal and sale of closed university assets will be established next year. A cooperative system will also be built to discuss the utilization of closed university sites and land use changes.

For universities receiving financial support, appropriate enrollment standards will be set, and maintenance enrollment rates will be established for five regions. If standards are not met, reductions will be recommended. Considering regional conditions and the scale of self-adjustments, reductions will be recommended for 30-50% of universities by region. If not implemented, general financial support will be suspended. The Ministry explained that the standard enrollment rates will be disclosed around May to June next year, and the effects of quota reductions will appear from 2023. The Ministry plans to finalize the maintenance enrollment rate indicators and calculation methods by October and require universities to submit autonomous innovation plans by March next year. Incentives will also be provided to excellent universities.

Admissions outside the quota will also be included in total volume management. This year, 45,000 new students were admitted through admissions outside the quota, with about half enrolled in universities located in the capital area. Additionally, to prevent excessive increases in admissions outside the quota, some admissions will be converted or improved to within-quota selections. A Ministry of Education official explained, "The evaluation will be based on enrollment rates of current and new students, but maintenance enrollment rates will vary by region. Evaluations will be conducted on total volume within and outside the quota, but admissions for socially disadvantaged groups and persons with disabilities will be excluded from total volume management."

Improvement of Graduate-Undergraduate Quota Ratio, Implementation of Reserved Enrollment Quota System

The Ministry will also promote policies to make quota adjustments more flexible, as requested by universities. The quota adjustment ratio between undergraduate and graduate schools will be improved. Currently, to increase the graduate master's quota by one, the undergraduate quota must be reduced by 1.5 to 2 students. This standard will be slightly relaxed. The Ministry plans to revise the enforcement decree in the second half of this year and finalize the improvement plan. It will also encourage quota adjustments between universities under the same corporation to enable department reorganizations. The Ministry will revise the university establishment and operation regulations to provide grounds for quota adjustments and review the possibility of improving the merger and acquisition system under the Private School Act. For example, a corporation operating both junior and general universities will be able to integrate overlapping departments and adjust quotas accordingly.

The "reserved enrollment quota system," which allows universities to reserve part of their admission quotas, will also be implemented. Reflecting opinions that once quotas are reduced, it is difficult to restore them, the Ministry will revise the enforcement decree in the second half of this year. A Ministry official explained, "The principle is to recognize this only restrictively, and only a certain percentage will be acknowledged when reflecting reduction achievements. The conditions for restoring reserved quotas will be presented in October." Universities restructuring around lifelong vocational education and converting quotas to adult learner-dedicated programs will have a certain percentage of reserved quotas recognized as quota reduction achievements during maintenance enrollment rate inspections.

Support measures have also been prepared to offset reduced undergraduate quotas with lifelong education demand for adults. The Ministry will promote improvements to the national scholarship system to expand support for adult learners. Additionally, special admissions for employed persons will include high school graduates with more than five years of work experience, and the upper limit for part-time registration (12 credits) will be made flexible. A regulatory sandbox will be introduced, allowing employed persons with recognized work experience to transfer to the second year at lifelong vocational education excellent universities.

Financial Expansion Plans Also Pursued... Increased Financial Support for National Universities and Support for Consortium Universities

The Ministry of Education also presented a university innovation support strategy that encourages openness, sharing, and cooperation between capital and non-capital areas, and between general and junior colleges. It will promote expansion and restructuring of general financial support, tax reduction expansions, and relaxation of leasing restrictions on educational basic property. The "Regional Innovation Platform" will be expanded to enable universities and local governments to establish cooperative systems for nurturing local talent. Special higher education innovation zones will be designated within regional innovation platform areas, applying customized regulatory exemptions for up to six years.

For national universities, the Ministry plans to increase financial support to the level of capital area universities or national university corporations and enact the "National University Act" within the year to grant operational autonomy and accountability. To enhance competitiveness, support will be provided for establishing a "Joint Education Innovation System (Consortium Universities)" that allows joint academic operations based on each university's specialization fields. National universities within regions will develop joint development strategies and individual specialization plans to enable academic structure reforms and functional reorganization.

Deputy Prime Minister and Minister of Education Yoo Eun-hye said, "The current crisis caused by the decline in the school-age population should become an opportunity for universities to take a leap forward through bold structural reforms and qualitative innovation. The government will do its best to promote university autonomous innovation and create a higher education ecosystem of co-growth through regulatory innovation and expanded financial support."

This content was produced with the assistance of AI translation services.