Allegations have emerged that college application processing firms have been dividing the market and colluding by providing tens of billions of won in sponsorships for sports events and music concerts to secure contracts with universities. Lawmakers criticized these firms for neglecting necessary system upgrades and failing to obtain essential liability insurance, which contributed to a significant application system failure.
During a National Assembly audit on October 12, Rep. Kim Jun-hyuk of the Democratic Party questioned Uway CEO Seong Yoon-seok and KACE President Lee Gi-jeong about the alleged collusion between Uway and Jinhaksa.
Rep. Kim displayed data from the Fair Trade Commission, stating, "Uway provided 9.6 billion won in sponsorships for sports events, music concerts, and development funds to secure contracts with universities. Shouldn't this method of securing contracts be questioned?"
He also pointed out the monopolistic nature of application processing contracts, raising concerns about collusion. "Uway has exclusive contracts with 94 universities, while Jinhaksa has contracts with 87. Only eight universities are served by both firms. If both firms had been designated, the recent Uway system failure could have been mitigated. This piecemeal contracting feels like collusion," he stated.
In response, Seong Yoon-seok explained, "The 9.6 billion won includes not only promotional and direct financial support but also the provision of solutions necessary for university applications at no cost." Lee Gi-jeong confirmed that he was aware of these sponsorships and stated, "We have been in continuous communication, including sending emails to advise caution regarding these matters."
Rep. Seo Beom-soo of the People Power Party harshly criticized Uway's inadequate technical response and financial management. He questioned, "Uway attributed the failure to compatibility issues between the application and operating system. Could this not happen again during regular admissions? Is there an automatic backup system in place?"
When Seong admitted that there is currently no perfect automatic switch system, Seo raised his voice, saying, "Why are you not using the 4.9 billion won from the university development fund to upgrade the system?" Seong responded that over the past five years, the average revenue from application processing has been about 8.25 billion won, and they have invested around 2 billion won in the last two years, which is about 13-14% of their revenue.
The issue of whether the firms had obtained mandatory liability insurance as stipulated in their contracts was also raised. When Seo asked, "According to Article 15 of the KACE standard contract, are you insured?" Seong replied, "I have not confirmed that part."
When Seo pressed further, asking if they were even aware of the insurance coverage in case of damages, Seong stated, "If the university demands legal action, we will take responsibility where necessary."
A debate also ensued regarding the destruction of applicants' personal data. Seong stated, "Once the application period ends, KACE officials come to the site to shred the data and do not retain it for more than a year," adding that KACE confirms the destruction before notifying the universities. Lee Gi-jeong assured that KACE would thoroughly verify whether applicants' data is immediately destroyed and report back.
During a National Assembly audit on October 12, Rep. Kim Jun-hyuk of the Democratic Party questioned Uway CEO Seong Yoon-seok and KACE President Lee Gi-jeong about the alleged collusion between Uway and Jinhaksa.
Rep. Kim displayed data from the Fair Trade Commission, stating, "Uway provided 9.6 billion won in sponsorships for sports events, music concerts, and development funds to secure contracts with universities. Shouldn't this method of securing contracts be questioned?"
He also pointed out the monopolistic nature of application processing contracts, raising concerns about collusion. "Uway has exclusive contracts with 94 universities, while Jinhaksa has contracts with 87. Only eight universities are served by both firms. If both firms had been designated, the recent Uway system failure could have been mitigated. This piecemeal contracting feels like collusion," he stated.
In response, Seong Yoon-seok explained, "The 9.6 billion won includes not only promotional and direct financial support but also the provision of solutions necessary for university applications at no cost." Lee Gi-jeong confirmed that he was aware of these sponsorships and stated, "We have been in continuous communication, including sending emails to advise caution regarding these matters."
Rep. Seo Beom-soo of the People Power Party harshly criticized Uway's inadequate technical response and financial management. He questioned, "Uway attributed the failure to compatibility issues between the application and operating system. Could this not happen again during regular admissions? Is there an automatic backup system in place?"
When Seong admitted that there is currently no perfect automatic switch system, Seo raised his voice, saying, "Why are you not using the 4.9 billion won from the university development fund to upgrade the system?" Seong responded that over the past five years, the average revenue from application processing has been about 8.25 billion won, and they have invested around 2 billion won in the last two years, which is about 13-14% of their revenue.
The issue of whether the firms had obtained mandatory liability insurance as stipulated in their contracts was also raised. When Seo asked, "According to Article 15 of the KACE standard contract, are you insured?" Seong replied, "I have not confirmed that part."
When Seo pressed further, asking if they were even aware of the insurance coverage in case of damages, Seong stated, "If the university demands legal action, we will take responsibility where necessary."
A debate also ensued regarding the destruction of applicants' personal data. Seong stated, "Once the application period ends, KACE officials come to the site to shred the data and do not retain it for more than a year," adding that KACE confirms the destruction before notifying the universities. Lee Gi-jeong assured that KACE would thoroughly verify whether applicants' data is immediately destroyed and report back.
* This article has been translated by AI.
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