Wonseok Hagwon, a school corporation, has filed applications with the Daegu Rehabilitation Court to open rehabilitation proceedings and suspend its bankruptcy procedure..
Shin Gyeongju University said in a statement Friday that Wonseok Hagwon, which was declared bankrupt on July 3, has grounds for the commencement of rehabilitation proceedings under Article 34 of the Debtor Rehabilitation and Bankruptcy Act.
The university also proposed a debt repayment plan through asset sales.
In the statement, Shin Gyeongju University said the number of international students enrolled at the school had grown from eight in 2023 to 594 in the first semester of the 2026 academic year, and that a preliminary accounting review covering March through July this year showed the university's operating revenue had turned to a surplus.
The university outlined plans to repay its debts by selling assets including the Gyeongju University campus, valued at around 120 billion won ($81.7 million), a film museum valued at around 9.3 billion won, and land and buildings valued at around 4 billion won.
The bankruptcy petition was originally filed in 2022 by faculty and staff members who said they had gone 28 months without pay. There are currently 61 petitioners, and unpaid wages are reported to exceed 10 billion won.
The Daegu Rehabilitation Court declared Wonseok Hagwon bankrupt on July 3, ruling that the corporation was in a state of insolvency.
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