University campuses across South Korea are experiencing a surge in the presence of franchise chains. Seoul National University boasts a remarkable 60 franchise outlets (including various restaurants, convenience stores and cafes) – the highest among domestic universities. According to recent data from the University Education Research Institute, 465 commercial facilities have set up shop in 53 universities across Seoul, averaging nearly nine outlets per institution. Notably, the top 10 universities each accommodate around 30 commercial establishments.

The sharp increase in the presence of these commercial facilities on university campuses can be attributed to the financial need for universities to generate income through leasing. Over the past decade, many universities, grappling with financial difficulties due to government-imposed tuition fee freezes, turned to leasing as a revenue source. This trend intensified after government support waned in the post-COVID-19 era, leaving universities in dire financial difficulties.

The rapid increase in franchises on campus is more than just a commercial boom; it is a growing problem directly impacting students. As these franchises multiply, student spending is on the rise, posing a real financial challenge for the student body. If this trend continues without intervention, students may find it increasingly difficult to manage their expenses. What adds to the concern is the dwindling presence of student-friendly businesses that traditionally offered substantial benefits to the student community. These businesses, which once provided budget-friendly options and perks, are facing stiff competition from the growing number of franchises. It is essential to recognize the broader consequences of this trend, acknowledging that it not only affects students' wallets but also jeopardizes the accessibility of services that directly benefit our student population. Addressing this issue requires a proactive approach, ensuring that the unique needs and interests of students are not overlooked in the evolving commercial landscape on our campus.

Varied Perspectives on Franchises on Campus

Various perspectives surround the prevalence of franchise chains on university campuses. For some, the influx of these franchises represents an opportunity to generate additional income, potentially improving student life through enhanced services. This viewpoint emphasizes the positive aspects of the franchises and their potential contributions to the overall campus experience.

"The lease income generated from on-campus commercial facilities is reinvested into students' education expenses," explained an official at a private university.

Many SNU students welcome franchises.

"I don't think introducing franchises itself is a good thing, but I don't see a need to view it negatively either,” said a student who wished to remain anonymous.

“Franchises, being primarily composed of large corporations, offer benefits such as discounts, online ordering, and familiarity.”

“I think it's positive in the sense that it ultimately contributes to the convenience of students, so personally, I think there's no need to be negative about it," the student added.

"I really like it! I don't have to go outside to get delicious food, and the on-campus discounts are substantial!" said another student.

However, there are some concerns and complaints.

Lee Hee-sung, a researcher at the University Education Research Institute, raised concerns, saying, "external businesses that pay rent to the university must make a profit. Naturally, these businesses prioritize profits rather than student well-being. As a result, campus living costs can only rise, heightening the burden on students.”

"Universities profit from students' tuition fees and impose additional high usage fees to the firms, effectively dividing the money paid by students between major corporations and the university," he added.

While the majority of SNU students generally hold a positive view of franchises, there is some criticism regarding the current franchise situation at SNU. They noted that prices tend to increase excessively and felt the growing daily expenses due to franchises are burdensome. Also, many suggested that franchises should offer more visible benefits, such as student discounts. In light of these factors, it is evident that some changes are necessary. A possible alternative for expensive franchises would be Saenghyeop, a unique and independent university organization.

What is Saenghyeop?

Student cooperatives, commonly referred to as "Saenghyeop" in Korean, are unique nonprofit organizations collaboratively managed by university staff and students. These cooperatives play a pivotal role in overseeing various indispensable welfare facilities on campuses, encompassing dining options, convenience stores, bookshops, and vending machines. Significantly, the surplus income generated by these cooperatives is predominantly reinvested for the benefit of students.

The inception of the student cooperative concept can be traced back to 1990 at Chosun University, where the objective was to provide essential welfare facilities for a holistic university education. Over time, this model has proliferated to 34 universities across South Korea, establishing a community where students and staff actively engage in the management and promotion of ethical consumption practices.

Sogang University took a pioneering step by establishing its student cooperatives in October 1988, marking the beginning of Saenghyeop's steady growth. Presently, Saenghyeop boasts over 130,000 members across 33 universities. What sets these cooperatives apart is their unwavering commitment to reinvesting generated profits back into the university community. In practical terms, student cooperatives have been instrumental in making higher education more financially accessible. They prioritize maintaining reasonable prices for products and services, considering the financial situations of students over accumulating substantial profits. Their primary mission revolves around ensuring that the overall cost of living on campus remains affordable, thereby alleviating the financial burden on students.

However, the burgeoning presence of commercial facilities within universities has posed challenges to the revenue streams of these cooperatives. Some universities have gone as far as imposing rent and security deposits to Saenghyeop, contributing to a decline in their activities. According to the Korean University Cooperatives Association, the nationwide membership rate has plummeted from 33.8 percent in 2004 to a mere 15.3 percent in the past year. This decline underscores the pressing need to address the challenges faced by student cooperatives and rejuvenate their role within the university landscape.

Despite these difficulties, the ethos of Saenghyeop remains rooted in its dedication to student welfare. As commercialization intensifies on campuses, the critical role played by these cooperatives in fostering an affordable and student-centric environment means strategic interventions may be necessary. By reassessing their operational dynamics, collaborating with university administrations and enhancing outreach efforts, student cooperatives can reclaim their pivotal position in supporting students' financial well-being and maintaining an ethical and accessible campus experience.

Revitalizing Saenghyeop in SNU

Seoul National University Student Cooperative (SNUSC) has encountered a series of challenges, including the closure of Global House in 2017, the Family Life Convenience Store in 2018, the closure of dining halls in building 500, restaurants, Cafeteria No. 4, tea house DaHyangManDang, and the computer supplies store in subsequent years. A qualitative survey conducted to understand SNU students' perceptions of SNUSC revealed a limited awareness of the cooperative, which was especially exacerbated post-pandemic. Moreover, a more significant issue is the low participation of students as SNUSC cooperative members.

SNU members can become cooperative members by paying 10,000 won ($7.49). Cooperative members are entitled to benefits such as a 3 percent discount on purchases of stationery and memorabilia, a 5 percent discount on all products at Cafe Neutinamu, discount on TEPS exam fees, and exclusive perks during cooperative events. When asked about their willingness to pay 10,000 won for these benefits, many students expressed that they did not see significant merit in them. Particularly, while Saengheyop highlights the TEPS exam discount as a major perk, most students deemed it irrelevant due to the infrequency of taking the exam.

Students at SNU have expressed a keen desire for more meaningful benefits, particularly advocating for larger discounts on various beverages and meals at the school cafeteria. Additionally, they've put forth suggestions such as exclusive snack sharing events and prize giveaways solely for cooperative members to incentivize joining the cooperative.

While meeting these demands may pose initial financial challenges for both the school and Saenghyeop membership-based facilities, it presents an opportunity to address a broader issue: the decline in Saenghyeop membership. The idea is that by offering more attractive and practical benefits, such as increased cafeteria discounts, there is a likelihood of revitalizing Saenghyeop membership. The current low participation in Saenghyeop activities could be attributed to the demanding job market and shifting student priorities. Therefore, despite the potential financial challenges, meeting these demands becomes a necessary step to overcome the declining engagement in Saenghyeop.

In essence, while there may be some financial implications in the short term, addressing the students' desire for more practical benefits not only improves their daily lives but also serves as a strategic move to boost Saenghyeop participation. It becomes a necessary investment to foster a more vibrant campus community, ensuring students find value in extracurricular activities amid the competitive demands of the job market.

A SNU student emphasized that SNUSC should accurately identify the needs and demands of students. Facing competition with large franchises, it is crucial for SNUSC to consider not only the quality of service and products but also the familiarity and trust that play significant roles in consumer decisions. To redeem its position, SNUSC should pay meticulous attention to the specific needs of student consumers to compete effectively with the variety of services offered by larger franchises.

The challenges faced by SNUSC highlight the importance of adapting to student needs and preferences. By reassessing and enhancing the benefits offered to cooperative members, with a focus on more relevant and desirable perks, SNUSC can reclaim its position as a valuable resource for Seoul National University students. In doing so, not only can it meet the current demands of the student body but also ensure the cooperative remains a cornerstone of student life at SNU.