Private Universities Required to Disclose Reserve Fund Size Annually

Resolution on Amendment to the Enforcement Decree of the Private School Act
'University Reserve Fund Accumulation Practice' Addressed
Establishment of Basis for Reserve Fund Status Inspection
Increase in Disposal Value of Basic Assets

From now on, private universities will be required to disclose the scale and usage details of their reserve funds.

On the 13th, the Ministry of Education announced that the revision of the "Enforcement Decree of the Private School Act," which includes this provision, was reviewed and approved at the Cabinet meeting. This law mandates the disclosure of the scale and usage details of reserve funds for private universities and school corporations.

Until now, some private universities have accumulated reserve funds through tuition fees under the name of building depreciation expenses. Because of this, there have been criticisms that the proportion of reserve funds is high despite universities experiencing financial difficulties.

Prime Minister Han Duck-soo is speaking at the Cabinet meeting held on the 23rd at the Government Seoul Office in Jongno-gu, Seoul. Photo by Jo Yong-jun jun21@

Private universities and school corporations must post the scale and usage details of their reserve funds on their university websites within three months after the end of each fiscal year, and keep them posted for one year. Additionally, to increase transparency in the use of reserve funds, the Ministry of Education has established grounds to conduct inspections on the status and usage of reserve funds of private universities and school corporations.

During inspections, the main focus will be on ▲ the status of reserve fund accumulation within the scope of depreciation expenses in the tuition fee account for building reserves ▲ the status of investments within the investment limits for securities and venture companies.

The amount subject to replacement of approval by the competent authority with a report when disposing of basic property has been expanded from 500 million KRW to cases under 2 billion KRW.

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