Singyeongju University Files for Rehabilitation Proceedings
김승민
2026-07-23
On July 23, 2026, Wonseok Academy Foundation, the governing body of Singyeongju University, filed with the Daegu Bankruptcy Court an application to commence rehabilitation proceedings and a motion requesting suspension of the ongoing bankruptcy proceedings.
As the Foundation had already been declared bankrupt on July 3, it argued that the requirements under Article 34 of the Debtor Rehabilitation and Bankruptcy Act for commencing rehabilitation proceedings had been satisfied. The Foundation further asserted that the grounds leading to the rehabilitation filing could be resolved through the rehabilitation process itself, and submitted supporting legal and factual grounds to the Daegu Bankruptcy Court.
First, the Foundation presented a debt repayment plan through the sale of assets. The former Gyeongju University campus, which became idle following the merger of the former Gyeongju University and the former Sorabol University, has been approved by the Ministry of Education for disposal. The property has an appraised value of approximately KRW 131 billion. In addition, an application for approval to dispose of assets valued at approximately KRW 9.3 billion, including the Museum of Visual Arts located in Joyang-dong, formerly operated by Gyeongju University, is currently under review. Procedures, including appraisals and approval from the Ministry of Education, are also underway for the disposal of land and buildings in the Seobu-dong area, located in downtown Gyeongju, with an officially assessed value of approximately KRW 4 billion.
If rehabilitation proceedings are commenced, the Foundation believes that prospective buyers, who had previously been reluctant to negotiate while anticipating bankruptcy auctions, will actively seek purchase negotiations. In addition, the Foundation intends to repay outstanding wage obligations as quickly as possible through Debtor-in-Possession (DIP) financing, similar to the financing utilized during the recent rehabilitation proceedings of Homeplus to support operating funds and payments to small business vendors. This measure is intended to minimize the hardship experienced by faculty, staff, and other members of the university community throughout the rehabilitation process. However, given the unique legal status of a school foundation, implementation of this financing method will require further legal review and consultation, including obtaining approval from the relevant supervisory authorities.
The motion requesting suspension of the bankruptcy proceedings was filed on the grounds that continuation of the bankruptcy process could significantly impair the value that the University is capable of creating through its continued operation. One of the primary reasons cited was the potential negative impact of the bankruptcy proceedings on admissions for the 2027 academic year, whose early admission application period begins on September 7.
In particular, the number of international students at Singyeongju University has increased dramatically, from only 8 students in 2023, to 112 in 2024, 476 in 2025, and 594 students enrolled as of the first semester of the 2026 academic year. As a result, the University's operating revenue turned positive on a provisional accounting basis during the period from March through July 2026. Furthermore, the University is currently preparing joint educational programs with universities in China. If these Sino-foreign cooperative programs are established in three academic departments and enroll more than 150 Chinese students annually, the University expects to have more than 1,000 international students once the programs reach full capacity. The Foundation therefore argued that the bankruptcy proceedings should be suspended as soon as possible in order to preserve this significant future value.
While awaiting the Court's decision, the Foundation continues to carry out all essential university operations, including student admissions, academic services for current students, and career support. The University is also actively communicating with its international students, who are particularly in need of accurate information following the bankruptcy ruling.
The University will continue to provide timely updates on the progress of asset sales and other significant developments through its official website. We sincerely appreciate your continued interest, encouragement, and support.
Sincerely,
July 23, 2026
Joon Soo Kim
President, Singyeongju University