The student council of Sogang University filed a complaint with the Fair Trade Commission against KDB Asset Management, the operator of the school’s dormitory, Friday, over high costs.
It is the first time that students have filed a complaint against a private operator of school dormitories.
The council said Friday that the asset management firm has applied higher-than-market interest rates on loans tapped by the school for the construction of the dormitory. The financing contract also bans the school from paying the principal for 10 years.
The “unfair” terms of the loan are leading to high costs for students using the dormitory, according to the council.
The members of the council visited the fair trade watchdog’s headquarters Friday afternoon and submitted the complaint signed by 80 students.
“KDB Asset Management signed the contract in 2008 when interest rates were exorbitantly high following the U.S. financial crisis. It is unfair that the financial firm is forcibly maintaining the terms for 20 years and refusing to accept the school’s demand that it be allowed to repay its debt earlier than scheduled,” a student council member said.
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