Declining School-Age Population Deepens University Financial Crisis... "Government Needs Practical Support"

Due to the decline in the school-age population, universities that rely heavily on tuition fees for most of their income are facing worsening financial difficulties, highlighting the need for government support.

The Korea Council for University Education (KCUE) announced the results of the "Analysis of Financial Losses of Private Universities Due to Student Under-enrollment" on the 15th.

On the 12th, when the autumn weather with large temperature differences continued, students were strolling around the campus at Yonsei University in Seodaemun-gu, Seoul. / Photo by Mun Ho-nam munonam@

According to the data released by KCUE on the same day, among 156 four-year private universities nationwide in 2022 (65 in the metropolitan area and 91 in non-metropolitan areas), 35 universities (9 in the metropolitan area and 26 in non-metropolitan areas) are expected to record operating losses.

This is due to an increase in the number of under-enrolled freshmen, with the actual number of under-enrolled students in 2022 reaching 10,507, an increase of 6,347 compared to 2012.

KCUE projected that due to the decline in the school-age population, the number of universities facing expected operating losses and the amount of losses will increase from 38 universities and 87.33 billion KRW in 2023 to 44 universities and 123.12 billion KRW in 2024, and 53 universities and 168.45 billion KRW in 2025.

Among these, non-metropolitan universities account for 94.4%, representing the majority share, and KCUE explained that this scale (proportion) is increasing year by year. An analysis of whether the expected operating losses of private universities (accumulated over the next four years) can be compensated by the 2021 discretionary reserves and carryover funds estimated that 19 universities (4 in the metropolitan area and 15 in non-metropolitan areas) would not be able to cover operating losses caused by freshmen under-enrollment.

A KCUE official stated, "It is necessary to provide consulting to strengthen university financial capabilities, improve regulations for university financial independence, and offer practical support to increase student enrollment."

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