Official Statement on the Bankruptcy Order and Rehabilitation Process of the Wonseok Educational Foundation

 

On July 3, 2026, the Daegu Bankruptcy Court issued a bankruptcy order for the Wonseok Educational Foundation, the legal entity that operates Singyeongju University and Silla High School.

 

We sincerely apologize for the hardship caused by the prolonged delay in wage payments, not only to the 61 faculty and staff members who filed the bankruptcy petition but also to many other members of our academic community. We also extend our deepest apologies to the 1,774 students of Singyeongju University, 594 international students who have come from overseas to pursue their studies with us, 221 students of Silla High School, their parents and families, approximately 50,000 alumni of Silla High School, former Seorabeol University, and former Gyeongju University, and above all, to the citizens of Gyeongju who have continued to support us with their trust and encouragement. We deeply regret the concern and disappointment this situation has caused.

 

Despite the continuing challenges arising from Korea's declining college-age population and the increasingly difficult environment facing higher education institutions, the Foundation has made sustained efforts to improve its financial condition by expanding international student enrollment, restructuring academic programs to better meet societal needs, and enhancing institutional efficiency. These initiatives have strengthened the University's competitiveness and financial structure. Nevertheless, we were unable to completely resolve the outstanding wage arrears, and we therefore accept the Court's decision with humility and a profound sense of responsibility.

 

Believing that court-supervised rehabilitation represents the best means of protecting both our students' right to education and the legitimate interests of our creditors, the Foundation began preparing its application for rehabilitation proceedings immediately following the bankruptcy order.

 

Until the Rehabilitation Court decides whether to commence rehabilitation proceedings, we will continue to seek the necessary approvals from the Bankruptcy Court, the court-appointed bankruptcy trustee, and the Ministry of Education to ensure the continued and stable operation of our educational institutions.

 

It is important to emphasize that the bankruptcy of the Educational Foundation does not mean the closure of either Singyeongju University or Silla High School. Both institutions continue to operate in accordance with applicable laws and regulations. Accordingly, the 51 faculty and staff members of Silla High School and the 211 faculty and staff members of Singyeongju University remain fully committed to providing normal educational activities and ensuring that students can continue their education without interruption.

 

The Foundation will regard this difficult moment as an opportunity to reaffirm its responsibilities and will devote every available effort to restoring the University's stability and ensuring its sustainable future. We will also work together with our faculty and staff, students, alumni, and the citizens of Gyeongju, listening carefully to their valuable advice and support, so that we may overcome this crisis together and continue serving our community as a trusted institution of education.

 

Once again, we sincerely apologize to our students, parents, faculty and staff, alumni, and the citizens of Gyeongju for the concern and anxiety this situation has caused.

The Foundation will communicate its rehabilitation plan and all significant developments promptly and transparently through the official website of Singyeongju University.

We sincerely appreciate your understanding, encouragement, and continued support during this challenging time.

 

July 16, 2026

Dr. Joon Soo Kim

President

Singyeongju University