Will University Financial Difficulties Be Resolved...Easing Execution Standards for University Financial Support Projects

Ministry of Education Announces Basic Plan for University Innovation Support Project and More

To address the financial difficulties faced by universities, the execution criteria for the University and Junior College Innovation Support Project funds and the National University Development Project funds will be relaxed, and the performance evaluation method will be restructured.

On the 9th, the Ministry of Education announced the '2023 Basic Plan for the University and Junior College Innovation Support Project and National University Development Project,' which outlines these details.

The University and Junior College Innovation Support Project is a program through which the Ministry of Education provides funding to universities to autonomously implement their plans and strengthen their capabilities in education, research, industry-academia cooperation, and lifelong education. This year, a total of KRW 805.7 billion (an average of KRW 6.9 billion per university) will be provided to 117 four-year universities, and KRW 562 billion (an average of KRW 5.5 billion per college) to 103 junior colleges. Seventy percent of the total project funds are allocated to supported universities based on a formula, while the remaining 30% are given as incentives to universities demonstrating innovation commitment.

The National University Development Project aims to enhance the competitiveness of national universities and support autonomous innovation, with KRW 458 billion (an average of KRW 12.4 billion per university) invested in 37 national universities. Similarly, 60% of the National University Development Project funds are distributed according to a formula, and 40% are provided as incentives.

Until last year, each university could only use the University and Junior College Innovation Support Project funds for student support areas related to educational innovation, and personnel expenses could only be spent on newly hired faculty and staff involved in university innovation projects.

However, starting this year, up to 25% of the total support funds can be used for personnel expenses of faculty and staff not directly related to university innovation projects. Additionally, other operational expenses can be freely used within 10% of the total support funds.

National University Development Project funds can also be used for recurring expenses such as utility bills within a 20% limit.

The relaxation of execution criteria for the University and Junior College Innovation Support Project funds and National University Development Project funds is due to the worsening financial difficulties of universities caused by tuition freezes since 2009. In particular, recent increases in public utility fees have further intensified the financial burden.

Alongside this, the Ministry of Education plans to reduce face-to-face and qualitative evaluations centered on reports and instead distribute education innovation support funds (incentives) based on evaluations focusing on key matters. Considering that the Junior College Innovation Support Project aims to cultivate professional workers necessary for national and social development, employment rates and retention employment rates will also be evaluated. Specific evaluation contents, indicators, and methods will be finalized after gathering expert and field opinions.

Lee Ju-ho, Deputy Prime Minister for Social Affairs and Minister of Education, stated, "We will strongly support universities' innovative activities to expand flexibility and convergence in talent development through university financial support projects."