Korean Job Discussion Forums

[livinseoul]

I was wondering how much it costs the parents to send their kid to a hagwon. Say 3 hours a week for 4 months.

[ttompatz]

[wylies99]

Uh, much more than that. The lowest I've seen, or heard, was 150,000 for T/TH or M/W/F. For many hogwans, it's 300,000 and up, per month.

5 days per week? The LOWEST I've seen is 300,000, and it can go up to a million per month, depending on the reputation of the hogwan and the teachers.

OP- This is a VERY profitable business. Don't let anyone lie to you about that. You are worth A LOT of money to your employer.

[Juregen]

Discussing pricing issues.

Is an all FT hagwon asking at least 250k per month for 5 hours per week?

How big are these classes? 5-6 kids?

Price and size of class must be somewhat in accordance no?

simple math tells you in a class of 6 at 250k per month for 5 hours per week
FT working 20 hours
gives you potential earning power of 4*6*250.000 = 6.000.000 Won per month without overtime

that is 72.000.000 miilion revenue on a yearly basis.

Wages and cost, i am assuming 3.000.000 per teacher variable cost, which is 36M per annum + travel expenses and admin costs 5M

gives you a netto of 31.000.000 won per teacher.

Each teacher needs then about 30 students consistently.

Then there are of course the real estate cost, taxes, etc ...


How far am i with these numbers from reality?

#students
size of class
consistent amount of participation

[ontheway]

ttompatz has accurate numbers, as usual.

The prices hogwan's may charge are fixed by the government. They are based on the number of class hours per week. The amounts are set as caps or maximums, and there are no higher amounts allowed for having a foreign teacher vs. a Korean teacher, and no higher amounts are allowed for having smaller class sizes.


Some schools do charge higher amounts, but if they exceed the limits set by the local education office, the prices are illegal. It occurs frequently, and if no one ever complains to the education office then they can charge more than the legal max. and get away with it. The legal limits are so low that many schools would have to close if they adhered to them.

[Otherside]

Juregen, your numbers might vary a little,
But I'd say your figure is pretty accurate regarding the earning potential of an FT (possibly a bit more as most FT's will be teaching closer to 25 hours a week).

Not to mention there is always a bit of extra money to be made by pocketing employee taxes/pension, neglecting to provide healthcare and skimping on severence and a plane ticket with an 11th month firing

[georgewallas]

[the foystein]

I think most charge around 10 - 12 thousand per hour.

[jeffkim1972]

I know down here in Mokpo, for a kiddy hagwon, "Fun English" , i believe it was only 120,000Won a month for everyday.

The other figure i heard is about 600,000 for 6 months for an adult. Those classes are also unlimited. However, you must buy your own books.

This is in Mokpo.

[ontheway]