[Report] 'Bankruptcy Crisis' Myeongji Hakwon... The Campus and Students Left All Alone

Court Decides to Suspend Myeongji Hakwon Rehabilitation Process
Myeongji Hakwon: "Rehabilitation Process Will Resume, Not Heading Toward Bankruptcy"
Myeongji University Student Union: "Current Students Do Not Trust Myeongji Hakwon Management"
Students: "Feelings of Resignation, Anxiety, and Shame"

On the 18th, a banner was hung on the campus of Myongji University in Seodaemun-gu, Seoul. Photo by Kang Wooseok, intern reporter beedolll97@asiae.co.kr

[Asia Economy Intern Reporter Kang Wooseok] "I'm angry and annoyed... but the biggest feeling is anxiety."

On the 18th, a student I met at Myongji University in Seodaemun-gu, Seoul sighed and said this. The campus of Myongji University visited by the reporter that day was quiet, perhaps due to the vacation. Except for the occasional protest banners and large posters, it was not much different from usual days.

However, the situation surrounding Myongji University is unfolding urgently. On the 8th, the Seoul Rehabilitation Court Division 18 (Chief Judge An Byungwook) decided to suspend the rehabilitation procedure for the school foundation Myongji Academy.

This was because the investigation committee judged that the feasibility of the submitted rehabilitation plan was low. The decision to abolish the rehabilitation procedure can be immediately appealed within 14 days from the date of announcement. However, if the abolition of the rehabilitation procedure is confirmed, Myongji Academy will enter bankruptcy proceedings.

Previously, Myongji Academy failed to build the golf course promised after the sale of 'Myongji Elfenheim' Silver Town in Yongin, Gyeonggi Province in 2004. As a result, it lost a lawsuit for refund of sales proceeds in 2013 and was held liable for damages totaling 19.2 billion KRW. Subsequently, the creditor SGI Seoul Guarantee filed for rehabilitation of Myongji Academy in May 2020, initiating the rehabilitation procedure.

Myongji Academy immediately issued a clarification. On the 10th, through the Myongji University website, Myongji Academy stated, "We clearly inform you that Myongji Academy is not heading towards bankruptcy but will restart the rehabilitation procedure," and "Currently, the debtor Myongji Academy will reapply for rehabilitation reflecting the Ministry of Education's opinion, and the Ministry of Education has expressed its willingness to cooperate with Myongji Academy's rehabilitation application." They added, "We are in the process of submitting a new rehabilitation application and related procedures, and considering this, we clearly state that bankruptcy is far from the case."

Officials from the Myongji University Student Council are holding a joint press conference to announce a joint statement regarding the 'Rehabilitation Plan' on the afternoon of the 17th at the Myongji University Humanities Campus Library in Seodaemun-gu, Seoul. Photo by Yonhap News

The students have lost trust in the school. The Central Operations Committee (Jungunwi) of the Humanities and Natural Sciences Campus of Myongji University held a press conference on the 17th at the Myongji University Library in Seodaemun-gu, Seoul, stating, "President Yoo Byungjin (Myongji University) wrote a memorandum after the bankruptcy application saying 'corporate issues will not affect the university' and 'I will take full responsibility if serious management problems arise later,'" but "he completely ignored the situations that students had demanded and supported for years, and even now, their priority is not us," criticizing the administration.

Also, Jungunwi announced the results of an "Emergency Survey on Myongji Academy Bankruptcy" conducted on Myongji University students in March last year, stating, "Among 3,311 student respondents, 3,246 did not trust Myongji Academy's management," and "about 2,800 students expressed willingness to participate in student actions such as rallies and protests."

They demanded President Yoo's fulfillment of responsibility, the introduction of a government-appointed director system for smooth relations with the Ministry of Education, and seeking financial contributors to resolve the situation in the worst-case scenario.

Myeongji University Campus, Seodaemun-gu, Seoul. Photo by Wooseok Kang, Intern Reporter beedolll97@asiae.co.kr

Amid the chaotic campus atmosphere, students are expressing mixed emotions. A student who wished to remain anonymous said, "(The Myongji Academy) bankruptcy application controversy is not the first time, and now we are in a state of resignation. We just feel whatever will be, will be."

Jeon (26), who recently graduated, expressed feelings of anxiety and embarrassment. He said, "I entered Myongji University at 20 and have spent a considerable time as a Myongji person, but (due to the Myongji Academy controversy) it feels like this precious school life is becoming meaningless, and I have vague anxiety about difficulties in future employment," adding, "If the school closes, when I am in my 30s or 40s, I think it will be embarrassing to tell my children that I attended a closed school."

Choi (23), a senior, strongly stated that responsibility and alternatives are needed. He said, "'Myongji Academy bankruptcy controversy' has been an ongoing issue," and "In a situation where the rehabilitation procedure has been abolished, someone must take responsibility and present concrete measures for this situation." He added, "Myongji Academy, as a school foundation, must fulfill its educational duties," and "Instead of just saying 'trust and wait,' concrete actions showing specific measures, such as the student council's demands for 'disclosure of the rehabilitation plan' and 'introduction of direct presidential elections and government-appointed directors,' should be reflected."

Meanwhile, the Ministry of Education expressed a stance of actively encouraging the rehabilitation plan related to Myongji Academy's rehabilitation procedure. A Ministry of Education official told Asia Economy in a phone interview, "Regarding the rehabilitation plan, (the Ministry) will actively encourage and cooperate so that the procedure can proceed." Regarding the closure of Myongji University, the official explained, "If Myongji University closes, there could be damage to students and members, so we plan to request an extension of operation to protect the right to learn as much as possible."

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