Korean Job Discussion Forums

[timhorton]

What is the process for opening a hogwon?

Anyone know the costs of various franchises?

[bixlerscott]

Better get a Korean girlfriend or wife that specializes in doing business here. As for costs, I have been wondering this too just out of curiosity as I was a business major in college. Must depend on the type, size, and location of hagwon. I do know that competition is fierce in the hagwon market. A nice building of a tradional folk art style not located in an officetel, a good looking female vice director for public relations, and white foreign teachers are necessary to have anything going on with a hagwon. I am guessing around 1 million US dollars or more to put up a hagwon that will get noticed and actually work.

The only foreigner I know that operates a brick and morter business of any sort is an Irish man who has operated a foreigner bar for the past 5 years in an officetel. He said he taught for a year and a half, went home for a little while and came back to open the bar. He is very happy here.

I am assuming he got a windfall of inheritance and took his money here to create his dream job. I did not ask how he pulled the financial part off with only having been a teacher for a year and a half, becuase it seemed obvious to me that his father probably had passed away at that point, leaving him some money. Even, an officetel rent and key money as well as other costs would be way out of reach of what a teacher could save up. Please, correct me if I am wrong on this one.

Yes, if you got a large sum of money, you can come in here, partner up with a Korean business consultant, and start a business of your choice; with the governments permission and not even need to mess with a woman here to get things done. In fact, if your rich enough, Korea will award you permanent citizenship and you can even outright own property.

[wylies99]

[ChuckECheese]

But you have to be an asshole to become a hagwon owner or director. That's prerequisite.

[wylies99]

[gsxr750r]

Ask, and ye shall receive....

EFL-Law guy is setting up his hagwon as we speak, and he has provided a step-by-step play-by-play of everything. Kind of neat:

http://www.efl-law.com/forum/viewtopic.php?t=1066

[cdninkorea]

[Pak Yu Man]

Depends if you want to buy or rent the guilding and/or property. My wife and I started a school back in Daegu and we sarted with less than 100,000,000 won. The best thing to do would finds a new building complex going up, hopefully in a richer area. Most of your students will come from there. Offer a 50% off trial month. Once you got them in the door, then you can go full price.
You will need a Korean you can trust 100%. I would not use a friend or partner...I'd suggest wife or husband.
During your first 2-3 months get some privates at the school or get a company gig or two (legal if you report the income and have the right paper work).

[cruisemonkey]

[bixlerscott]

Very interesting thread this has become. The case study of opening a hagwon. Next part is going to be even more interesting if it is documented. The opening and operation. I think the biggest challenge is getting paying customers, but with the right communication and channels of contacts, you got it going on then. Just easier said, than done.

I suppose if you had 500,000,000 Won or 1/2 mill US Dollar, you would be quite comfortable to take the risk for 225,000,000 or 1/4 mil US Dollar. Would take many decades for me to save up that much, which is why I have not gone into business career. I do not know how some people do it on the money part, but they apparently they do since they got the big money.

[ChuckECheese]

In the U.S. you don't need that much to start a business. All you need is around 20% of what you actually need and the banks will lend you the 80% of the money you need aided by SBA (small business administration).

20% of investment capital, a good business idea, and a fairly decent credit are all you need to start your business.

Personally, I would not invest any money in Korea. Everything is jacked-up and over priced here. Everything in Korea appears to have a great potential to spiral down.

[Ianinilsan]

[bixlerscott]

[timhorton]

[gsxr750r]

I don't know.. send him a PM over there.