Local areas in Korea are on the verge of extinction due to the dual challenges of population decline and the magnetism of the capital region. Local industries are collapsing, and students turn a blind eye to local universities that support these industries. From this sense of urgency, this paper examines the current crisis level of Korea's local universities, seeks solutions, and considers the direction they should pursue moving forward.

As per the analysis in this paper, by the year 2040, most private universities outside the capital area are projected to be overlooked by students, leading to a stark prediction that one out of two might naturally disappear due to regional decline. Additionally, the analysis reveals that both students and professors perceive local universities as lagging in competitiveness compared to their counterparts in the capital region, with the faculty members at these institutions also viewed as falling behind. This collective perception demonstrates the crisis local universities are facing.

Analysis utilizing data from the Graduate Occupational Mobility Survey (GOMS) reveals that individuals who completed both their high school and university education in the capital region had a 13.2% higher probability of finding employment within the region, and an 11.3% higher chance of securing employment specifically in Seoul, compared to their peers with different educational paths. Furthermore, capital region high school graduates attending capital region universities were 2.5 times more likely to be employed by large companies in the region, earned a starting salary of 240,000 won higher, and had twice the likelihood of securing full-time positions than those who attended universities outside the capital area. The analysis of factors influencing university choice uncovers that the primary reasons for choosing universities in Seoul at the admission stage are peer influence and the social recognition and reputation of the institutions, rather than employment prospects. In addition, it finds that students with higher grades place significant importance on the suitability of their major.

In a survey of freshmen and sophomores during the 2023 academic year, education quality and reputation emerged as the primary reasons for choosing universities in the capital region. This finding underscores that if these factors are decisive for students selecting universities in the capital area, including Seoul, local universities should place a strategic priority on improving these aspects to attract students.

Drawing from the analysis outcomes, this paper proposes the following structural transformation and development strategies for Korea's local universities: Firstly, the Korean government should enable private universities to strategically and flexibly exit the education market by amending relevant laws, including the Private University Structural Improvement Support Act (draft). Secondly, local universities should commit to enhancing their competitive advantages through deliberate selection and concentration. Thirdly, the effectiveness of existing policies supporting local universities requires thorough reevaluation to inform the design of more sophisticated support measures. Fourthly, the objective understanding of student mobility within and between regions, together with the diagnosis of the causes of their movement, is essential for developing strategies that bolster the synergistic effectiveness of the policy linkages between 'local high schools-local universities-local businesses'. Lastly, to advance local universities, a comprehensive and effective policy for balanced regional development must be clearly articulated.

Preface
Executive Summary

Chapter 1 Introduction

Chapter 2 Literature and Government Policies on Regional University Development
　Section 1 Literature
　Section 2 Government Policies

Chapter 3 Status and Diagnosis of the Local University Crisis
　Section 1 Aspects of Declining School-Age Population
　Section 2 Aspects of Local Extinction Crisis
　Section 3 Aspects of Student Preferences
　Section 4 Aspects of the Professional Perspective
　Section 5 Conclusion

Chapter 4 Analyzing the Determinants of College Choice through the Graduate Occupational Mobility Survey(GOMS)
　Section 1 Introduction
　Section 2 High School, University, and Career Pathways
　Section 3 Determinants of University and Workplace Choice
　Section 4 Analyzing Mobility from Other Regions to Local Universities
　Section 5 Conclusion

Chapter 5 Analyzing the Determinants of University Choice Through Surveys
　Section 1 Survey Overview
　Section 2 Survey Key Findings
　Section 3 Pathways from High School to College
　Section 4 Empirical Analysis Results
　Section 5 Conclusion

Chapter 6 Overseas Examples of University Innovation

Chapter 7 Conclusions and Policy Recommendations
　Section 1 Conclusion
　Section 2 Policy Recommendations

References
ABSTRACT