Changwon Court Declares Bankruptcy of Korea International University Facing Financial Crisis

Korea International University, which had been struggling with financial difficulties, has ultimately been declared bankrupt.

The Bankruptcy Division 1 of Changwon District Court in Gyeongnam announced on the 13th that it had declared bankruptcy on Ilseon Hakwon, the school corporation of Korea International University.

Attorney Lee Soo-kyung was appointed as the bankruptcy trustee until December 31, 2024, and the creditor registration period was set until August 30 of this year.

The court stated, "There are facts causing bankruptcy such as insolvency and excess debt in the school corporation," and ruled, "Bankruptcy is declared in accordance with the Debtor Rehabilitation and Bankruptcy Act."

Korea International University. [Photo by Korea International University website]

Korea International University, which opened in 1978 and became a four-year university in 2003, experienced a financial crisis after being selected as a government financial support restricted university in 2011 and 2018.

In June of this year, it was again listed, making it impossible to participate in government financial support projects and for students to receive National Scholarship II and student loans.

The sale of the Jinju dormitory, which had been pursued since 2018, failed due to debt relations and other issues, and at the end of last year, the corporation’s bank account was subject to provisional seizure due to unpaid wages to retired faculty and staff.

As difficulties continued, including a freshman enrollment rate not exceeding 10%, overdue utility payments, and unpaid wages to faculty and staff exceeding 10 billion won, Korea International University recently filed for bankruptcy with the court.

In May, the Ministry of Education conducted an audit of the university’s overall operations and reportedly sent a third warning letter with conditions to fulfill such as payment of unpaid wages and overdue utility bills, and ensuring students’ right to learn.

Following the court’s bankruptcy declaration, Korea International University will undergo bankruptcy procedures.

The corporation’s property rights will be revoked, and the bankruptcy trustee appointed by the court will proceed with the liquidation process of the school’s land and buildings.

To ensure students’ right to learn, they are expected to be specially transferred to similar departments at nearby private universities.

The creditors’ meeting and creditor investigation will be held at Changwon District Court on September 25.

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