SM Group pledges W7b to cover scholarships for Yeoju University freshmen

SM Group announced Thursday that Chairman Woo Oh-hyun plans to donate approximately 7 billion won ($5.11 million) to fully cover national scholarship funding for incoming freshmen at Yeoju University in the 2027 academic year.

The donation is a direct response to the government's decision to restrict national scholarship and student loan support at Yeoju University starting in 2027. The Ministry of Education announced Aug. 25 that Yeoju University was among 20 universities nationwide designated as institutions subject to restrictions on national scholarships and student loan eligibility.

"Before making this decision, Chairman Woo first considered minimizing the financial burden on students and their families," an SM Group official said. "The intent is to empathize with the reality facing students and parents, and to work through the problem together — by fully covering the scholarships, the chairman hopes to remove the uncertainty students may feel as they plan their enrollment."

Woo and SM Group have long championed the revitalization of regional universities as a means of creating public value and contributing to local economies. In November 2021, they took over Yeoju University, which had fallen into financial distress due to mismanagement, and restored normal operations through bold investment and systemic reform.

Since taking the helm of the Dongshin Education Foundation, Woo has provided around 1 billion won annually in future-talent scholarships to all incoming freshmen. In December 2024, he invested 6.5 billion won in renovating classrooms, dormitories and other facilities. He also donated 3.3 billion won in November 2024 and 2.3 billion won in March this year as university development funds.

Including the latest scholarship commitment, Woo and SM Group's cumulative donations to Yeoju University now exceed 21 billion won. Those efforts have paid off: the university's freshman enrollment rate climbed from the high-60 percent range at the time of the takeover to 93 percent this year, roughly five years later.

Beyond education, Woo has pledged 50 billion won to Ulsan city through UBC Ulsan Broadcasting to support underprivileged residents, and has committed 320 billion won to public medical and welfare initiatives including the Pilui Medical Foundation. He has also donated 500 million won to support descendants of independence activists through the Ministry of Patriots and Veterans Affairs, and has extended giving to birth-support programs in Goheung-gun, South Jeolla Province, the Korea-US Alliance Foundation, and a women's professional basketball team sponsored by Seoul's Seodaemun-gu.

"Chairman Woo has been appealing to Yeoju city and the city council to align their efforts toward normalizing the university's operations, while simultaneously making direct and indirect investments to keep Yeoju University — the only university in the Yeoju area — alive," an SM Group official said. "SM Group is also planning and running various support programs to help overcome the economic difficulties the Yeoju region faces due to population decline, and to fulfill our role and responsibility as a cradle of talent development."

Yeoju University President Lee Sang-wook said tuition costs are among the most critical factors in a student's enrollment decision. "If benefits like national scholarship support are cut off, recruiting freshmen and running academic programs becomes extremely difficult for the university," he said. "Using SM Group's donation as a stepping stone, we will take careful steps to ensure that families of prospective students do not face any additional financial burden."

Meanwhile, Yeoju University said it plans to file for an injunction to suspend the ministry's designation and to pursue administrative litigation. The university said it intends to seek a court ruling to ensure continued government support, pointing to its freshman enrollment rate having returned to a normal trajectory.