Busan, South Korea – For decades, Busan’s universities have been anchors of education and innovation, shaping the future of one of South Korea’s most vibrant cities. But now, these institutions are battling to stay afloat, caught in the crosscurrents of financial strain, shrinking enrollment, and a policy environment that offers little reprieve. As classrooms empty and budgets tighten, the question looms: can Busan’s universities weather the storm, or will they sink under the weight of these mounting challenges?
In South Korea, tuition freezes were introduced over a decade ago as a means to alleviate financial pressure on students and families. The policy was initially welcomed as a necessary intervention in a country where tuition fees are among the highest in the world. However, for universities heavily reliant on tuition income, the long-term consequences have been devastating.
Private universities in Busan, where tuition accounts for 70–80% of operating revenue, are feeling the pinch acutely. Rising costs for utilities, faculty salaries, and facility maintenance have left budgets strained. “We’ve reached the breaking point,” said an anonymous administrator from Dong-A University, which is considering a 5.5% tuition hike this year. “Without additional revenue, we can no longer maintain the quality of education we strive to provide.”
The financial challenges faced by Busan’s universities are exacerbated by a relentless decline in student enrollment. As the region’s school-age population shrinks—from 46,000 in 2020 to an estimated 40,000 in 2025—universities are struggling to fill their classrooms. Several smaller institutions are now facing a grim reality: unfilled seats mean lost revenue, compounding their financial woes.
At Dong-Eui University, administrators have acknowledged that declining enrollment has forced them to consider “difficult decisions” about their academic offerings. Across the city, private universities are not alone in their struggle; even public institutions like Pukyong National University have had to tighten their belts to account for shrinking student bodies.
Busan’s challenges are not solely rooted in demographic shifts. The city is home to over 20 universities, including three national institutions and a multitude of private ones. This dense academic landscape, a legacy of unchecked expansion in previous decades, has created significant redundancy in academic offerings. Many universities compete for the same pool of students, leading to a race to the bottom in admissions standards and tuition incentives.
With limited differentiation between institutions, smaller universities often fail to attract the students and resources needed to compete. This oversupply not only dilutes academic standards but also intensifies the financial strain on already struggling schools.
Faced with mounting pressures, some universities are turning to a contentious solution: raising tuition fees. Both Dong-A University and Kyungsung University have proposed increases for the 2025 academic year, sparking debate among students and families already burdened by rising living costs.
Critics argue that tuition hikes will only exacerbate the problem by making higher education less accessible. “We understand that universities are struggling, but the burden shouldn’t fall on students,” said Kim Ji-hyun, a sophomore at Dong-Eui University. Her sentiment echoes a growing frustration among students, many of whom are already grappling with student loan debt.
To address these challenges, the South Korean government has launched the “Glocal University 30” initiative, a program aimed at revitalizing regional universities through significant financial investment. Selected institutions will receive up to 1,000 billion won ($770 million) over five years to enhance research capacity, foster global partnerships, and innovate academic programs.
However, the program has faced criticism for its exclusivity, with only a handful of universities receiving support. Critics warn that this approach risks widening the gap between well-funded schools and those left behind. “The program is a lifeline for some, but it doesn’t address the systemic challenges facing most institutions,” said an education policy analyst.
Experts agree that short-term fixes like tuition hikes or selective funding are insufficient to address the broader challenges faced by Busan’s universities. Many are calling for a fundamental restructuring of the city’s higher education system.
One proposed solution is institutional consolidation. By merging smaller or struggling universities, resources could be pooled, administrative costs reduced, and academic offerings streamlined. This approach has shown promise in other regions, where consolidated institutions have emerged stronger and more competitive.
Another strategy involves diversifying revenue streams. Busan’s universities could expand programs for international students, leveraging the city’s appeal as a global hub for maritime and cultural studies. Initiatives to attract non-traditional learners, such as adults seeking career advancement, could also help stabilize enrollment numbers.
Finally, experts emphasize the importance of aligning academic programs with the needs of local industries. Busan, with its robust logistics, tourism, and manufacturing sectors, offers ample opportunities for collaboration between academia and business. Expanding industry-specific training and internship programs could not only attract more students but also ensure they are well-prepared for the job market.
The challenges facing Busan’s universities are emblematic of broader struggles across South Korea’s higher education landscape. While the city’s institutions face an uphill battle, the crisis also presents an opportunity for innovation and reform.
As universities, policymakers, and industry leaders work to navigate this complex landscape, one thing is clear: the status quo is no longer sustainable. Only through bold, collaborative efforts can Busan’s universities reclaim their role as vital engines of education, research, and regional development.
