Excessive tuition fees collected last year by universities

Major universities in Korea collected 20% more in tuition fees than was due last year, according to a study released last week. The finding was based on a study of 20 Seoul-based private universities by the Korea Higher Education Research Institute, writes Kim Bo-eun for The Korea Times.

The institutions inflated expenditure when drawing up their annual budgets, while reporting less than what was actually collected in revenue, as a means to impose higher tuition fees. The 20 omitted a combined total of 571.6 billion won (US$497 million) in revenue from their financial statements for 2011. However, they overstated a combined total of 172.1 billion won in expenditure.

Through the accounting manipulation, the universities collected 743.7 billion won more in tuition fees than was warranted, the institute noted. The sum accounted for 20% of the institutions’ total tuition revenue, estimated at 3.72 trillion won. The colleges could have actually cut tuition fees by 20% if they had adopted appropriate accounting measures.
Full report on The Korea Times site