Ministry of Education Orders Closure of Seohae University for Former Chairman's Embezzlement of 14.6 Billion KRW in School Funds

Special Transfer Enrollment for 140 Currently Enrolled and On-Leave Students to Nearby Schools

[Asia Economy Reporter Yoo Byung-don] Seohae University, a private specialized university located in Gunsan, Jeonbuk, which caused controversy due to the embezzlement of school funds by a former corporate chairman, has been ordered to close.

On the 22nd, the Ministry of Education announced that, following a hearing procedure under the Higher Education Act, it will issue a university closure order for Seohae University, established and operated by the Gunsan Christian Academy Foundation, effective from the 28th of next month.

Additionally, since the Gunsan Christian Academy Foundation does not operate any other schools besides Seohae University, it was determined that the foundation can no longer achieve its establishment purpose, and thus a dissolution order for the foundation was also issued.

In 2015, it was revealed that former chairman Lee embezzled 14.6 billion KRW of public funds, including school funds, from Seohae University.

The Ministry of Education demanded that Seohae University compensate for the embezzled funds, but the university did not comply with the Ministry’s corrective demands and closure warnings issued three times last year.

Furthermore, Seohae University received an E grade in the 2018 University Basic Competency Diagnosis Evaluation, which restricted new students from receiving national scholarships and student loans, leading to a sharp decline in new enrollments and worsening finances to the extent that even staff salaries were delayed.

The Ministry of Education decided to close the university, judging that Seohae University’s operation had reached its limit and no alternatives to overcome the financial difficulties were found.

The assets of the Gunsan Christian Academy Foundation, which was also ordered to dissolve, will undergo liquidation procedures such as debt repayment.

Any remaining assets after liquidation will revert to the national treasury.

The Ministry of Education is promoting special transfer admissions for 140 current and leave-of-absence students enrolled at Seohae University.

Students will first be specially transferred to the same or similar majors and the same academic year within the Jeonbuk region.

If there are no available departments in the region or insufficient capacity, the transfer admission area will be expanded.

For leave-of-absence students currently serving in the military, the Ministry of Education will guide special transfer admissions to individual units with the cooperation of the Ministry of National Defense, and for students who are difficult to contact, the Ministry of the Interior and Safety will assist in notifying them of transfer admissions at their legal addresses.

A Ministry of Education official stated, "We will continue to prioritize protecting students’ right to learn and supervise higher education institutions to provide quality education."