DEA Analysis of Higher Education in Korea

This study evaluates the operational efficiency of universities in Korea using Data Envelopment Analysis (DEA), a robust non-parametric method ideal for the public sector, especially when evaluating educational institutions with multiple inputs and outputs.The primary objectives are to measure current efficiency levels, identify key influencing factors, and propose strategies for improvement.Universities in Korea face challenges such as an aging population, declining birth rates, regional disparities, and a mismatch between graduate skills and labor market demands.Financial sustainability and efficient resource allocation are critical issues affecting institutional performance.This study examines variables including faculty-to-student ratios, research and library expenditures, number of graduates, and employment rates.Findings reveal significant efficiency variations across different institution types and regions.National universities generally perform better than private ones, and rural institutions often have higher efficiency scores of 70% compared to metropolitan counterparts like those in Seoul of 50%.National universities also perform better overall, with an average efficiency score of 65%, compared to 55% for private universities.Key efficiency indicators include faculty-to-student ratios, research and library expenditures, graduate numbers, and employment rates.For instance, high-efficiency universities produce an average of 1,800 graduates per year with a faculty-to-student ratio of 1:20, while low-efficiency institutions, with an average facultyto-student ratio of 1:10, only produce around 100 graduates annually.The novel contributions of this paper include the application of DEA to Korean higher education and the development of targeted strategies for efficiency improvement, offering valuable insights for policymakers and educational administrators.This study provides several recommendations for low-performing universities such as strengthening student recruitment and retention efforts and boosting research output by offering grants and recognition for high-impacted publications.This research aims to support policymakers, educational administrators, and stakeholders in enhancing the quality and effectiveness of higher education in Korea by providing a detailed assessment of efficiency and practical improvement strategies.