Financial Stability in Small Universities

This study reinterprets tuition reliance in Korean higher education amid rapid demographic decline and growing fiscal pressure on small, teaching-oriented universities. While tuition dependence is often viewed as a sign of financial vulnerability, the findings indicate that a high tuition-reliance ratio does not necessarily imply institutional fragility when student numbers—particularly international students—continue to grow. Because international students are admitted outside domestic quotas, their enrollment can stabilize revenue even as the school-age population shrinks. Drawing on national demographic projections, higher education finance statistics, and a comparative analysis of Japan’s internationalization policies, the study shows that international student recruitment not only compensates for declining domestic tuition revenue but also enhances curriculum diversification, administrative capacity, and university–community engagement. The analysis further suggests that tuition reliance driven by expanding international enrollment may signal institutional adaptation rather than distress. However, equity concerns and administrative burdens associated with rapid internationalization underscore the need for coordinated national and institutional policy frameworks. By situating tuition reliance within the broader dynamics of demographic contraction and global student mobility, this study contributes a revised conceptual lens for understanding financial sustainability in Korean higher education.