[Exclusive] KEPCO University Without Lecture Buildings... Spending 12.5 Billion Won on Rent Alone

Korea Electric Power University, Annual Rent 3.12 Billion KRW... Booyoung Golftel, etc.
Opened in March This Year as Moon Administration's National Project... 'Hasty Opening' Controversy
Site Area Equivalent to 48 Soccer Fields... Only One Main Building
Lecture Rooms to be Completed in 2025... Rent Expected to Cost 12.5 Billion KRW

Fireworks Exploding at Korea Energy Engineering University
(Naju=Yonhap News) Reporter Jo Namsu = On the morning of March 2nd, fireworks exploded at the entrance ceremony and vision proclamation ceremony held at Korea Energy Engineering University in Naju, Jeollanam-do. Korea Energy Engineering University, which welcomed its first freshmen on this day, is the world's first energy-specialized research and startup-focused university, operated as a small elite university with 400 undergraduates (100 per grade) and 600 graduate students. [Joint Coverage] 2022.3.2
iso64@yna.co.kr
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[Asia Economy Sejong=Reporter Lee Jun-hyung] Korea Electric Power Corporation (KEPCO), which funded the establishment of Korea Energy Engineering University (KEEU), has been revealed to spend over 3.1 billion KRW annually on rent. This is the result of opening the university without properly equipping educational facilities such as classrooms and dormitories in order to inaugurate it within the Moon Jae-in administration’s term.

According to data submitted by KEPCO to the office of Park Soo-young, a member of the People Power Party, on the 26th, KEEU’s annual rent was calculated at 3.117 billion KRW. KEEU was leasing a total of six buildings across two locations: Seoul and Naju, Jeollanam-do, where the university campus is located. More than half of the rent went to Naju Golftel and Clubhouse, owned by Booyoung Housing. KEEU remodeled these facilities to use them as student dormitories. The land and building areas are 29,752㎡ and 8,556㎡ respectively, with an annual rent of 1.975 billion KRW.

(Naju=Yonhap News) Reporter Jo Namsu = On the morning of March 2nd, President Moon Jae-in delivered a video greeting at the entrance ceremony and vision proclamation ceremony held at Korea Energy Polytechnic University in Naju, Jeollanam-do. Korea Energy Polytechnic University, which welcomed its first freshmen that day, is the world's first energy-specialized research and startup-focused university, operating as a small elite university with 400 undergraduates (100 per grade) and 600 graduate students. 2022.3.2 iso64@yna.co.kr

One Building on a 400,000㎡ Site

The reason KEEU spends over 3 billion KRW annually on rent is due to the lack of proper infrastructure. Earlier, in March, KEEU opened with only one four-story building on a 400,000㎡ site, equivalent to 48 soccer fields. As a result, KEEU students must stay in the remodeled Golftel until the official dormitory is completed in 2025. The university library, temporarily set up in the only completed main building, covers just 226㎡ (approximately 68 pyeong).

This is why the “hasty opening” controversy arose with KEEU’s inauguration. It has been criticized that the Moon Jae-in administration forcibly opened the university without considering construction progress to meet its core national agenda of establishing KEEU within its term. In fact, key educational facilities such as classrooms and dormitories will be completed sequentially starting from 2025, three years after the opening. Considering that KEEU spends 3.117 billion KRW annually on rent due to insufficient infrastructure, a simple calculation shows that about 12.5 billion KRW of KEEU’s budget will be spent on rent from this year until 2025.

The problem is that KEPCO, which is already in a “deficit swamp,” is responsible for funding KEEU’s rent and operating expenses. According to the “Basic Agreement on the Establishment of KEEU” signed in 2019 by KEPCO and its power generation subsidiaries, KEPCO bears 64% of the establishment and operating costs of KEEU. KEPCO must contribute 132 billion KRW to KEEU next year alone. KEPCO expects to invest a total of 1.6112 trillion KRW in KEEU’s establishment and operation costs from 2019 to 2031.

Hit by a ‘Comprehensive Real Estate Tax Bomb’ Last Year

In the rush to open KEEU, the university was hit by a 10 billion KRW “Comprehensive Real Estate Tax bomb” last year. Although school land is exempt from this tax under current law, most of the site was classified as “real estate under construction” subject to taxation because construction was still ongoing. As a result, KEEU ended up spending over 10% of its total budget (92 billion KRW) on this tax last year.

Voices criticizing the previous government’s reckless push to establish KEEU are growing louder. Representative Park said, “Because the Moon Jae-in administration hastily opened KEEU ahead of the presidential election, public funds are being wasted,” adding, “Should KEPCO, which is running deficits and raising electricity rates due to misguided energy policies such as nuclear phase-out, also be responsible for KEEU?” He continued, “As the number of students is rapidly declining and university restructuring is necessary, meaningless waste of taxpayers’ money must be stopped.”