Korean Job Discussion Forums

[wylies99]

Hagwon fall on hard times as parents try to cut costs
http://joongangdaily.joins.com/article/view.asp?aid=2899709

January 12, 2009
The famed Korean zeal for education is coming up against a formidable challenger - the economic crisis. The ubiquitous hagwon, or private educational institutes, are falling on unprecedented hard times as parents tighten up the purse strings.

Oh, 40, a housewife living in northern Seoul�s Jungnang District, has one son in middle school and two daughters in elementary school. Oh decided to cut the monthly 3 million won ($2,247) she used to spend on private tutoring, opting to teach the kids Korean and English herself. Her husband will take care of science and math.

�We will tutor our own children for at least a year, until the economy gets better,� Oh said.

Cho, 39, who has two daughters in the third and fifth grade, currently lives in Daechi-dong, a hagwon district in southern Seoul. Cho said she moved her daughters to cheaper English hagwon, reducing her expenses from 350,000 won to 220,000 won per month, as her husband won�t be getting the bonus that he usually receives at the end of January.

�I tried everything not to have to cut my children�s education expenses. For two months, we stopped eating out and I didn�t go grocery shopping that often,� Cho said.

Such decisions by parents have forced many hagwon out of business. No hagwon in Gangnam, Yangcheon or Nowon, Seoul�s most popular education districts, is safe.

In January, for the first time ever, the number of hagwon that submitted business discontinuance letters exceeded 10 in each of the three district offices.

A hagwon owner who recently opened a new branch in Daechi-dong, Gangnam, to lure international middle school hopefuls said he is on the brink of shutting down.

�I originally thought I could attract about 500 elementary school students for January, but I only have 60 students so far. That�s barely 12 percent of the goal,� the owner said. He said his losses are nothing compared to many other hagwon owners, some of whom have even given their businesses away for free.

University students who earn money by tutoring are also suffering. Kim, a 23-year-old student at Seoul�s Ewha Womans University, no longer has an income.

�I had been tutoring a third-year middle school student in math and English for a year. Now I�m worried about how I�m going to make my pocket money, as I�m already having a hard time coming up with tuition.�


By Lee Jong-chan, Lee Won-jean JoongAng Ilbo [[email protected]]

[ThingsComeAround]

whoa...

now I look back and glad that I signed with a public school!!

[crusher_of_heads]

[Xuanzang]

Looks like there`s going to be a lot more of those "HELP! my boss screwed me in the 11th month" threads.

[sojourner1]

Unfortunately, education is not completely recession proof like it used to be such as when we went to school at home years ago during more a more stable time in history. While private schools are dependent on the ability or willing of parents to spend on their child's schooling, the public schools are dependent on a government with a decent amount of revenues flowing resulting from fees on international trade in case of Korea instead of taxes since taxes are very low. Of course public school is still less risky as you're not going to go to work today or even this year and be told they can't pay you since profitability and cash flow took a dump just last month. As in any business, when the chips are down, they'll cut you even if they like you and you did a good job.

[Typhoon]

But the private lesson (I know it is a tabboo subject here) is alive and kicking just as always.I haven't seen any down turn there. As many people (maybe more) are looking for tutors.Maybe it is a better value than a lot of hagwons as parents know who is teaching their kids, while at hagwons there is no choice of who your teacher will be.

[crosbystillsstash]

They spent 3 mill a month on private "education?". Jesus Christ that's insane. The dad must be on a good salary, or was.

How about some candlelight vigils to get the Korean govt. to sort out their bullshit schools.

No downturn in demand for privates however as far as I go. Only the good hakwons will survive, which is fine.

A hagwon owner who recently opened a new branch in Daechi-dong, Gangnam, to lure international middle school hopefuls said he is on the brink of shutting down. This guy made me laugh. The entry to those schools is so limited ( to luck, friends, and bribes) and the names of the texts being used were only leaked to owners with the right connections. Maybe he shoulda thought about his business more seriously before trying to milk the international middle school cow.

[skeeterses]

During my time in Korea, several Koreans mentioned at the English meetings that a lot of Korean parents were going into debt to put their kids through the ESL Hagwon system. And most of us know already that the majority of the kids don't want to be spending all their evenings learning a compulsory foreign language. This will probably be the year that the kids pull a mutiny on the hagwon system and walk out.

As far as privates go, don't expect a miracle there. You'll be in direct competition with Indian and Filipino teachers and won't be earning enough money to enjoy a middle class Korean life.

[Cheonmunka]

^ It's quite funny to me, too. I worked once for an outfit that was trying like mad to get an international school in operation. In ESL dept. where I was we were making a profit. But these other people ... a guy who took over the investment lost more than a million. I believe it was two. To paint the picture - rent alone was 110 million per month and they kept it going two years. Yet, there were only 12 students in the int. dept.
What they relied on though was the biggest craziness. There was some head lady who was/is a daughter of a past prime minister - I won't say who. (One time she put on a big event for the cronies and there were at least 20 limos with drivers parked around the field which was decked with white linen tables complete with wine service with a pretty good buffet.) Anyway, IF Hanaradang got into power, then they would have got all the connections right there and be given a boost by the party, however, Hanaradang didn't get in, Roh did. So it was a total loss. Went bankrupt straight away after the elections but thru the lawyer and joint action I came away all right.
This guy above, planning for 500 students. Crikey Moses.

[crosbystillsstash]

[Straphanger]

[TheUrbanMyth]

[strange_brew]

Good, let the whole system burn and then let these kids develop in their childhood like normal children. Can't be good for their emotional well being when they are shuffled from school to school only to go to bed at 1 in the morning and up at 7 to start again.

Also, perhaps it will force them to improve their shi te education system so that something gets done during the school day.

[Straphanger]

[Paji eh Wong]

That article was fact free.