Busan’s Universities and the Need for Structural Reform

By reducing the number of underperforming universities and focusing on improving the quality of education at remaining institutions, Busan can ensure that its higher education system remains competitive, financially stable, and capable of contributing to both the local and national economy.

Maru Kim
Maru Kim

In a recent article titled “Attracting Youth and Foreign Students is the Answer,” one of Busan’s dailies proposed that recruiting international students could be the key to reversing the city’s population decline and labor shortages. According to the article, these students could breathe new life into local universities, stimulate the economy, and potentially settle in Busan long-term. With Busan’s population dropping from 3.88 million in 1995 to 3.29 million, the pressure to find solutions is indeed urgent.

However, one has to wonder if the journalist who penned this piece has ever actually spoken to foreign students studying at South Korean universities, especially in Busan. Had they taken the time to meet and listen to these students, they might have realized just how unrealistic their solution is. Foreign students in Busan face significant challenges that go beyond simply enrolling in local universities. Many struggle with cultural isolation, language barriers, and even discrimination. Students from countries like China, Vietnam, and Indonesia, who make up the majority of Busan’s foreign student body, often find it difficult to integrate into the local community. Rather than being welcomed, they frequently encounter cultural stereotypes and exclusion, which undermine their ability to succeed both academically and socially​.

Additionally, the educational infrastructure in Busan is not equipped to meet the needs of these students. Many universities offer limited English-taught courses, forcing students to grapple with Korean language proficiency that is often insufficient for their academic requirements​. The article’s suggestion that foreign students can fill the void left by departing young Koreans ignores these harsh realities. Simply attracting more international students without addressing the deeper issues of integration and support is not only short-sighted but also highly impractical.

Foreign Student Retention – A Temporary Solution

The assumption that foreign students will naturally remain in Busan after graduation ignores the harsh realities they face while studying and attempting to integrate into the city. The challenges these students encounter—ranging from cultural isolation to language barriers and discrimination—seriously undermine their potential to become long-term residents. One has to wonder whether the journalist who proposed foreign student recruitment as a solution for Busan’s demographic issues has engaged with any of these students firsthand.

Had the journalist spoken to foreign students currently enrolled in Busan universities, they would have learned how difficult it is for these students to feel fully integrated into local society. Many international students, particularly those from Southeast Asian countries such as Vietnam and Indonesia, report facing not only language difficulties but also subtle forms of prejudice. These students often struggle to connect with their Korean peers and are left feeling socially excluded​. As a result, they frequently retreat into insular groups based on nationality or language, further compounding their isolation and reducing the likelihood that they will remain in Busan after their studies.

Language remains a significant hurdle for these students. Although universities offer some English-taught courses, the reality is that many degree programs require a level of Korean proficiency that most foreign students simply do not have. Even those who meet the basic language requirements often struggle to keep up with the academic and social demands of life in Busan​. For many, the promise of a seamless transition into Korea’s workforce is an illusion; they are often unable to compete with Korean graduates for jobs due to a lack of language fluency and cultural integration.

Moreover, while the article touts foreign students as a solution to Busan’s labor shortages, it fails to account for the fact that without significant cultural and institutional support, many of these students will leave South Korea after graduation. The retention rates for foreign graduates are low, and those who do stay in the country often relocate to Seoul, where job opportunities, social services, and cultural amenities are far more abundant​. The idea that foreign students will simply remain in Busan, filling the gaps left by departing young Koreans, is not grounded in the real experiences of these students.

To retain international talent, Busan needs to go beyond merely attracting students—it must create a social and professional environment where they feel welcome, supported, and able to thrive. Without addressing these deeper challenges, the strategy of relying on foreign student recruitment will likely offer only temporary and superficial benefits.

Structural Problems in Busan’s Economy

The notion that foreign students alone can resolve Busan’s population and labor crises not only oversimplifies the situation but also ignores the larger, systemic economic challenges the city faces. Busan’s economy, still heavily reliant on traditional industries like shipping, logistics, and manufacturing, lacks the dynamism and innovation needed to attract and retain young, skilled workers—both domestic and international. Even if foreign students could overcome the significant cultural and linguistic barriers they face, as discussed earlier, they would still struggle to find long-term opportunities in Busan’s limited job market.

Unlike Seoul, which thrives on sectors like finance, technology, and media, Busan has failed to diversify beyond its traditional industrial base. This economic imbalance means that foreign students, after graduating, are drawn to Seoul or other major cities where career prospects are much better​. It’s unrealistic to expect international graduates to settle in a city that cannot offer the same level of professional growth, competitive salaries, or global connections.

Furthermore, Busan’s reliance on older industries means that its economic structure is less appealing to the younger, innovation-driven workforce that thrives in more dynamic sectors. Cities that have successfully reversed population decline, such as Leipzig in Germany or Pittsburgh in the United States, have done so by investing heavily in innovation, research, and technology sectors​. These cities did not merely attract international students; they created entire ecosystems that supported both local and international talent through a mix of education, industry collaboration, and social infrastructure. By contrast, Busan has been slow to make such transformations, which limits its appeal as a long-term destination for foreign graduates.

Moreover, the broader issue of South Korea’s extreme centralization around Seoul cannot be ignored. The capital city dominates in terms of both resources and opportunities, drawing young talent from all over the country, including foreign graduates. Without national-level policies aimed at decentralizing industries and encouraging growth in regional cities like Busan, efforts to attract international talent will only offer temporary relief. The over-reliance on foreign student recruitment, as the article suggests, fails to address these larger structural issues, making it an incomplete and ultimately ineffective solution​.

Even beyond economic factors, Busan must address the lack of adequate social and cultural infrastructure that would make the city more attractive to foreign residents. While Seoul has developed a global city image with international neighborhoods, diverse cultural offerings, and better public services for foreigners, Busan has not kept pace. For international graduates to consider staying, the city must offer a livable environment that includes better housing options, cultural amenities, and professional networks that are currently lacking​. Without these improvements, foreign students are unlikely to view Busan as a viable option for long-term residence, regardless of their educational experience.

Busan’s reliance on traditional industries and its failure to build a more innovative, globally connected economy means that attracting and retaining international students is an uphill battle. Without deeper economic reforms and national efforts to decentralize industry, the city will continue to lose talent to Seoul, and foreign student recruitment alone will not reverse its population decline.

Alternative Solutions: A Holistic Approach

Rather than relying solely on foreign student recruitment to address its demographic and economic issues, Busan must adopt a more comprehensive, holistic approach that tackles both the structural and social challenges head-on. The idea that simply bringing in international students will revitalize the city overlooks the fact that many of these students face serious obstacles when attempting to integrate into Busan’s economy and society. A far more effective solution would involve creating a more inclusive environment for both foreign and domestic talent while simultaneously diversifying the city’s economy.

Investing in innovation-driven industries is one of the most urgent steps Busan must take. The cities that have successfully reversed population declines—such as Leipzig in Germany and Pittsburgh in the U.S.—did not achieve this by simply attracting students. They transformed their economies by investing in emerging sectors such as technology, biotechnology, and renewable energy​. For Busan to retain foreign talent and appeal to its own youth, it must reduce its reliance on traditional industries like shipping and manufacturing, and instead focus on becoming a hub for innovation and high-tech industries. Creating startup ecosystems, innovation hubs, and research centers in collaboration with universities and global companies could provide the kinds of career opportunities that attract young professionals.

Additionally, fostering stronger connections between education and industry is critical. Universities in Busan need to partner more closely with local businesses to ensure that both foreign and domestic graduates have a clear path to employment. Internships, mentorship programs, and cooperative education models can help bridge the gap between education and industry, making it easier for students to transition into the local workforce. By ensuring that academic programs are aligned with the needs of emerging industries, Busan can retain more of its graduates, whether they are Korean or international students​.

Beyond economic development, creating a more inclusive and livable environment is essential for long-term talent retention. Busan must address the cultural and social isolation that many foreign students experience. Improving language support is crucial; universities should offer more comprehensive Korean language programs tailored to foreign students and better integrate them into academic and social life​. Additionally, the city should implement initiatives to foster cultural exchange and promote social interaction between foreign and local students, which would help break down barriers of exclusion and prejudice​.

Moreover, Busan needs to improve its social infrastructure to become a more attractive place to live. The city could invest in affordable housing, better public transportation, and diverse cultural amenities, making it a place where both local youth and foreign students would want to stay after graduation. Global cities that have successfully retained international talent—like Berlin or Toronto—have focused heavily on creating vibrant, inclusive urban environments that cater to a wide range of cultural and professional needs​.

Lastly, any meaningful solution must involve national policy changes. Busan alone cannot overcome the economic dominance of Seoul without broader efforts to decentralize industry and government resources. National policies that incentivize companies to invest in regional cities like Busan, along with infrastructure projects that connect these cities more closely to global markets, are essential. South Korea’s economy is too centralized, and unless this imbalance is addressed, cities like Busan will continue to lose talent to the capital​.

Busan’s long-term success requires a multi-faceted approach that not only attracts talent but also supports their integration into the city’s social and economic fabric. This holistic strategy should involve investing in innovative industries, fostering stronger education-industry ties, and building an inclusive and vibrant urban environment. Without these deeper reforms, the city’s reliance on foreign students will offer only temporary and superficial benefits.

Decentralization of Economic Power

A critical oversight in the original argument about attracting foreign students to Busan is its failure to address the deeper, structural problem of South Korea’s extreme centralization around Seoul. South Korea’s capital is not just the political center but also the dominant economic hub, home to a disproportionate share of the country’s wealth, business opportunities, and cultural life. This imbalance makes it difficult for regional cities like Busan to compete for talent, both domestic and international. Unless this larger issue of economic centralization is addressed, efforts to revitalize Busan by attracting foreign students are unlikely to have a lasting impact.

Seoul’s economic dominance means that it attracts the majority of high-paying jobs, especially in sectors such as finance, technology, and entertainment, which are key to retaining both local and foreign talent. Graduates, whether they are from Busan or international students, are inevitably drawn to the capital for better career prospects and higher salaries. This trend not only accelerates the outflow of talent from Busan but also discourages foreign graduates from settling in the city after completing their studies​.

Decentralization efforts are essential if regional cities like Busan are to offer a competitive alternative to Seoul. National policies that promote the distribution of economic opportunities and resources across the country could help shift this balance. For instance, the government could introduce tax incentives or subsidies to encourage businesses to establish headquarters or major operations in cities like Busan, rather than concentrating everything in Seoul. Infrastructure investment in transportation, digital connectivity, and urban development could also help regional cities compete more effectively​.

Successful examples of decentralization can be found in countries like Germany and Japan, where governments have made concerted efforts to strengthen regional cities through policies that distribute economic activities and investment more evenly. In Germany, cities like Munich, Frankfurt, and Berlin share economic importance, reducing the strain on any one city and creating more balanced opportunities across the country. Similarly, Japan’s efforts to decentralize industries have allowed cities such as Osaka and Fukuoka to flourish alongside Tokyo​.

For Busan, decentralization would mean not only attracting industries and talent but also improving the overall quality of life. National policies that prioritize regional development, coupled with local efforts to diversify the economy, improve infrastructure, and enhance livability, could help Busan retain both local youth and international graduates. This requires a coordinated effort between the national government, local authorities, and businesses to create a more balanced, multi-polar economic landscape.

The Need for Structural Reform: Moving Beyond Survival Tactics

Busan’s universities, like many regional institutions in South Korea, have become increasingly dependent on international students to address financial difficulties. With the domestic student population shrinking due to low birth rates and the concentration of students in Seoul, regional universities are scrambling to maintain enrollment numbers. However, this strategy has significant downsides, as many institutions are accepting foreign students who struggle with language barriers and are ill-prepared for the academic rigor required. This leads to concerns about the overall quality of education, with some universities even accused of “selling degrees” to students who may not meet standard academic requirements.

This over-reliance on foreign students, while solving immediate financial concerns, is not a sustainable solution for the long-term health of these institutions. Many experts argue that the academic standards of some regional universities have already dropped, and without significant reforms, the quality of higher education in these areas will continue to deteriorate. This not only damages the reputation of these institutions but also fails to equip students—both local and international—with the skills and knowledge they need to succeed in an increasingly competitive job market.

In light of these challenges, some education policymakers and experts are advocating for a more radical solution: closing down or merging underperforming universities. This may seem drastic, but with predictions that nearly half of Korea’s universities could close in the coming decades, it’s becoming increasingly clear that a downsizing of the higher education sector is necessary. Instead of trying to keep every struggling university afloat, resources could be redirected to fewer institutions that prioritize academic excellence and produce high-quality research and graduates.

For Busan, this means focusing on improving the quality of education at its stronger institutions and potentially merging or phasing out universities that can no longer maintain high standards. Consolidating resources would allow these institutions to offer better programs, attract more qualified students, and maintain a level of academic rigor that aligns with global standards. Such reforms would also make it possible for the city to create a more research-driven, innovation-oriented academic environment, which could serve as a foundation for economic growth and attract both domestic and international talent.

Additionally, national-level reforms are needed to address the broader structural issues that have led to this crisis. The concentration of students in Seoul, combined with the declining birth rate, has put immense pressure on regional universities. Policies that incentivize students to stay in or move to regional areas, along with investments in higher education and regional economies, are crucial for balancing the demand for education and ensuring that all parts of the country have access to high-quality institutions.

Ultimately, the long-term viability of Busan’s universities will depend on a shift from survival tactics, like relying on international students, to strategic reform. By reducing the number of underperforming universities and focusing on improving the quality of education at remaining institutions, Busan can ensure that its higher education system remains competitive, financially stable, and capable of contributing to both the local and national economy.

In conclusion, the idea of relying on foreign students to rescue Busan’s struggling universities is not a sustainable solution. The challenges these institutions face—ranging from financial strain to declining educational quality—require more than just short-term fixes. Rather than continuing to lower academic standards or pursue international student recruitment as a lifeline, it’s time to focus on long-term structural reforms. By consolidating resources, closing underperforming universities, and raising academic standards, Busan can create a more sustainable, high-quality higher education system. This shift would not only benefit students but also ensure that the city remains competitive in the global economy.

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Maru Kim, Editor-in-Chief and Publisher, is dedicated to providing insightful and captivating stories that resonate with both local and global audiences. With a deep passion for journalism and a keen understanding of Busan’s cultural and economic landscape, Maru has positioned 'Breeze in Busan' as a trusted source of news, analysis, and cultural insight.
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