If the management committee determines that the key research institute’s operational planning and/or performance is poor, the situation shall be handled in accordance with one of the following provisions:
1. The management committee shall order the key research institute to put forward an improvement plan within a specified time limit and the key research institute shall implement the plan after it has been deliberated on and approved by the management committee and submit a copy of the plan to the supervisory committee for future reference.
2. If the key research institute fails to put forward an improvement plan in accordance with the provisions of the preceding subparagraph or if the management committee deliberates over the improvement plan and does not approve it, the management committee may put forward an improvement plan and order the key research institute to implement it and the management committee shall submit a copy of the plan to the supervisory committee for future reference.
If the supervisory committee determines that the key research institute’s operating performance is poor after deliberating over the key research institute’s performance report, the key research institute shall draw up an operations improvement plan within six months that addresses each operations item and submit this to the management committee for it to deliberate over. If the management committee approves the plan, the key research institute shall submit a copy to the university council for future reference.
The key research institute shall report its handling of the operations improvement plan referred to in the preceding paragraph to the supervisory committee on a regular basis; if the supervisory committee determines that the improvements made are not effective and the key research institute must be closed down, the key research institute shall put forward a closure plan within three months. The plan shall be deliberated over by the management committee and the supervisory committee, then presented to the university council for approval, after which the national university shall submit the plan to the competent authority for approval, and if the plan is approved, the national university shall implement it. If the management committee is negligent in its handling of the situation, the supervisory committee shall put forward a closure plan then present it to the university council for approval, after which the national university shall submit the plan to the competent authority for approval, and if the plan is approved, the national university shall implement it.

If one of the following circumstances applies to a key research institute, and the competent authority has ordered improvements to be made within a specified time limit, but there has been no improvement by the end of the specified time limit or the improvements made have been ineffective, the competent authority may order the closure of the key research institute after convening a meeting of the innovation steering committee to deliberate over the matter.
1. Its academic goals are facing obstruction making it difficult to realize them, or are experiencing some serious difficulty making it unable to continue its operations.
2. It has acted in violation of this Act or has not operated as set out in its innovation plan, and the circumstances are serious.
3. The supervisory committee or the management committee is unable to make resolutions or does not implement resolutions that have been made, and this is affecting the normal operations of the key research institute.
4. There is conflict between the members of the supervisory committee and/or the members of the management committee and/or the dean, and this is affecting the normal operations of the key research institute.
5. An evaluation of a key research institute finds that is being poorly run, and this is affecting the rights and interests of its students and/or its teaching or other personnel.
6. The financial situation has seriously deteriorated, and the key research institute is already unable to pay its debts, or its normal operations are being significantly affected.

If a key research institute will cease operating, it shall put forward a cessation of operations plan. The plan shall be deliberated over by the management committee and the supervisory committee, then presented to the university council for approval. The national university shall submit the plan to the competent authority for approval one year before the innovation plan comes to an end and if the plan is approved, the national university shall implement it.

When a key research institute is being closed down or ceasing its operations, it shall handle the situation in accordance with the following provisions:
1. The national university shall advise the students and assist them to transfer to another graduate institute and, in accordance with related regulations, give generous course credit exemptions for course credits they have already earned.
2. The staff of a key research institute’s shall continue to have a position at or be employed by the national university, however this does not apply to staff members who agree to be dismissed with severance pay or retire.
3. The contracts of the key research institute’s contract employees shall be terminated.