Cabinet approves bill to allow SNU incorporation

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Cabinet approves bill to allow SNU incorporation

Seoul National University is ready to become an independent corporate entity as early as March 2011 after the cabinet approved a bill yesterday.

“By incorporating Seoul National University, established and managed by the nation, we intend to step up autonomy and responsibility in university management and strengthen educational and research capacities, thereby fostering it into a world-class university,” the government announced.

Incorporation, if the bill passes the National Assembly early next year, will give the 63-year-old university greater autonomy in school management and finance, enabling it to administer a larger budget to recruit notable but higher-paid academics from abroad. Currently, no professor at SNU receives more than 90 million won ($78,000) a year, no matter the quality of their research achievements, because of government regulations.

Despite going independent, SNU will continue receiving annual government funds to pay labor and maintenance costs. However, the school will be allowed to operate as a profit-making business on the condition it doesn’t hurt the school’s education and research activities. Long-term loans or issuance of school bonds will also be allowed.

To ensure the university fulfills its duties, the Education Ministry will make it mandatory that the SNU president sets management goals every four years and makes public management plans annually.

Following incorporation, all school workers, including professors, will eventually lose their status as civil servants. Professors will retain the status for the five years from the point of incorporation. Some administration employees who don’t want to be deprived of the position will be allowed to relocate to other government bodies or municipal governments.

“We have a goal to raise the competitiveness of SNU to rank it as one of ‘the world’s top 10 universities’ through incorporation,” said an Education Ministry spokesman. “It will trigger reform talk at other national universities.”

The university president will also be the head of the corporation. The president, who has thus far been appointed by the president of the country after being nominated by the education minister, will be picked by the board members. The head of the board will also be appointed by the members. But the president of the university at the point of incorporation will chair the board until his or her four-year term ends. Board members, to total as many as 15, will consist of its president, two vice presidents, the vice education minister, vice finance minister and some external figures with expertise in school management.

The university will receive some properties belonging to central or regional governments on its campus and will be allowed to operate profit-making businesses through them.

Talk of transforming SNU into a corporate entity began in 1987 under the university’s long-term growth plan. But the plan had stalled due to opposition from other national universities. They said incorporation of public universities would mean less financial support from the government, with SNU being the exception.

Some national universities in regions outside Seoul have already responded negatively to the decision, saying SNU is receiving unfair privileges. “Incorporation of national universities is not supposed to give special favor only to Seoul National University,” said Seo Sun-pal, head of the planning department at Chonnam National University. “Giving away state property should apply to all national universities.”

A Pusan National University official said, “SNU was already well prepared for incorporation in terms of its asset size and development fund.”

Some raised suspicions that SNU had a behind-the-scenes deal with the government in return for establishing another campus in the disputed Sejong City in South Chungcheong. The Lee Myung-bak administration is seeking to develop the new city into an education and science-centered hub and talks of an SNU campus there began in March of this year. Prime Minister Chung Un-chan, who spearheads the move to redesign the Sejong project, is a former president of SNU. Incumbent SNU President Lee Jang-moo flatly denied the allegation yesterday, saying the incorporation had long been planned.


By Seo Ji-eun [[email protected]]
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