Posted December. 23, 2008 08:14,
Universities and colleges from next year can have commercial facilities built on campus such as department stores, movie theaters and shopping zones or attract private businesses to earn profit.
The requirements to set up universities are expected to get tougher, however, as the fundamental asset requirement to pursue commercial activities will rise from seven billion won (5.3 million U.S. dollars) to 10 billion won (7.6 million dollars) for a college; from 10 billion won to 15 billion won (11.4 million dollars) for a university; and from four billion won (three million dollars) to six billion won (4.5 million dollars) for a graduate school.
The Education, Science and Technology Ministry announced yesterday a revised bill on the foundation and operation of colleges and universities nationwide to take effect next year.
The bill allows universities to attract private investment to build commercial zones, religious facilities such as churches or temples (for private schools only), and establish other facilities including kindergartens and youth centers.
Under current law, private investors can establish commercial facilities on campus but the profit must benefit school staff, faculty members and students.
The new revision, however, allows universities and colleges to allow not just venture businesses but also corporations on their campuses.
Businesses will also be able to borrow land or buildings in an industrial complex to found and operate research centers.
Under the new rules, universities can take donations from businesses to move in, but the entire floor space for a company must remain under 10 percent of the entire space of a school building.
To give universities more autonomy, schools planning to establish a campus in other regions will be allowed to cut the student-teacher ratio from 1,000 to 400 and adjust their own student quota if they maintain their faculty member ratios from the previous year.