South Korea has a declining school-age population due to a low birth rate of 0.78, which is causing major changes in the university environment. Meanwhile, the government is evaluating the management and operation status of universities through structural reforms and inducing autonomous development of universities through financial support. However, the survival of universities is becoming a serious issue due to the lack of freshman enrollment, which started from local universities, and there are cases of universities closing down because of difficulties to operate due to decreased funding. Therefore, this study reviews the existing cases of closed universities, the government's university structural reform policies, and examines the problems of the school-age population that may appear in Korea in the future. Then, the negative effects of university closure on students, faculty, and school corporations are examined. Based on this, the purpose of this study is to propose government support measures to protect students, faculty and staff, and school corporations by examining system improvement measures related to school corporations.