The Education Ministry plans to introduce a new university and college rating system as the basis of a restructuring program in line with declining numbers of students and growing financial difficulties at educational institutes, officials said Tuesday.

The new system will divide schools into five categories. First-grade schools will be allowed to reduce the number of new entrants by themselves and the rest will be forced to cut their admission quotas in accordance with their grades.

Third level institutions in the two bottom levels will also be subjected to restrictions in government assistance in areas such as scholarship, research funds, and student loans, according to the ministry.

The lowest-grade schools will face closure if educational quality does not improve or irregularities are found.

The nation’s student population is expected to decrease sharply from 2015 due to the low birthrate, forcing many schools to merge or close down in the next five years.

The ministry said it would set up a special evaluation committee and would seek to change necessary rules to employ the new grading system starting from 2015.

By Oh Kyu-wook (596story@heraldcorp.com)