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Emeliu
Joined: 31 Mar 2009
Location: Korea, i'm OMW
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 Posted: Wed Jul 15, 2009 7:18 pm Post subject: creating your own hagwon |
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| I am kind of curious, is it possible to settle down in korea, take out a loan, and start your own Hagwon? If so, is it common for foreigners to take on such endeavors? |
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asams
Joined: 17 Nov 2008
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| Posted: Wed Jul 15, 2009 7:55 pm Post subject: |
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I've read a few threads about this and it sounds like you MUST have at least 50 million KRW in the bank.
Not sure I would be getting into the hagwon business right now with the government crack down on the rising cost of private education. I see many a hagwon going belly up in the next year or two.
If you were able to get an F series visa (read: marry a Korean  ) then you could simply do private lessons legally and make a ton of money. |
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Elvis Gratton
Joined: 12 Jul 2009
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| Posted: Wed Jul 15, 2009 8:23 pm Post subject: |
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| I've heard that Korean moms are a real joy to work with. |
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Emeliu
Joined: 31 Mar 2009
Location: Korea, i'm OMW
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| Posted: Wed Jul 15, 2009 8:52 pm Post subject: |
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| Elvis Gratton wrote: |
| I've heard that Korean moms are a real joy to work with. |
Thats good to hear! |
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T-J
Joined: 10 Oct 2008
Location: Seoul EunpyungGu Yeonsinnae
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| Posted: Wed Jul 15, 2009 9:00 pm Post subject: |
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I've said it on the other threads and I'll say it here, if you are looking for "easy" money, keep looking.
If you are willing to work like any other business owner, read 70, 80+ hours a week, start out losing money until your business grows and deal with the sleepless nights that accompany that particular stress, then by all means start one up! Good luck! |
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big_fella1
Joined: 08 Dec 2005
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| Posted: Wed Jul 15, 2009 9:48 pm Post subject: |
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You will not get a loan to start a business in your own country unless you own property so why would you expect to get a loan here? There are private lenders but they are different here. Back home they expect a 60% return but if the investment goes bad they write it off. Here they expect a 40% return but if the investment goes bad you still have to pay them.
The only way to make a small fortune with a hagwon is to start with a big fortune and 12 months later it will become small.
Besides the competition which will be intense, there are costs/expenses with running a hagwon that we foreigners don't think about including: rents, key money, registrations, taxes (I know Korean hagwons avoid them but they will report you if you aren't paying), buses, cleaners, utilities, books, office equipment , staff, and other I can't think of.
You will save the cost of 1 foreign teacher, but if your working you still need to pay yourself (you have to eat/live).
There are business opportunities in English education but opening a hagwon is not the best one. Try to think niche and small and you should be okay. |
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bobbybigfoot
Joined: 05 May 2007
Location: Seoul
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| Posted: Wed Jul 15, 2009 9:51 pm Post subject: |
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| If you are wanting to open your own hagwon so you can teach English the "right way" bear in mind that Koreans are not interested in the "right way". They are interested in the Korean way. |
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Emeliu
Joined: 31 Mar 2009
Location: Korea, i'm OMW
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| Posted: Wed Jul 15, 2009 9:56 pm Post subject: |
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| bobbybigfoot wrote: |
| If you are wanting to open your own hagwon so you can teach English the "right way" bear in mind that Koreans are not interested in the "right way". They are interested in the Korean way. |
Haha, no, I'm just looking for a long term plan, I don't want to be stuck with making 2.8 million won a month, I want to have a career at least, not a dead end job. |
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definitely maybe
Joined: 16 Feb 2008
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| Posted: Wed Jul 15, 2009 10:04 pm Post subject: |
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| Emeliu wrote: |
| bobbybigfoot wrote: |
| If you are wanting to open your own hagwon so you can teach English the "right way" bear in mind that Koreans are not interested in the "right way". They are interested in the Korean way. |
Haha, no, I'm just looking for a long term plan, I don't want to be stuck with making 2.8 million won a month, I want to have a career at least, not a dead end job. |
if you find a job making 2.8 a month in your first job here, you'll have found something that the bulk of your fellow first-time teachers in korea haven't. |
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Xuanzang
Joined: 10 Apr 2007
Location: Sadang
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| Posted: Wed Jul 15, 2009 10:06 pm Post subject: |
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| Emeliu wrote: |
| bobbybigfoot wrote: |
| If you are wanting to open your own hagwon so you can teach English the "right way" bear in mind that Koreans are not interested in the "right way". They are interested in the Korean way. |
Haha, no, I'm just looking for a long term plan, I don't want to be stuck with making 2.8 million won a month, I want to have a career at least, not a dead end job. |
Sometimes hagwons dont end up being long term plans. Bureaucracy, cut-throat competition and long hours can be poisonous to your well-being.
I think Juergen is still going at it. PM him. |
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crossmr
Joined: 22 Nov 2008
Location: Hwayangdong, Seoul
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| Posted: Wed Jul 15, 2009 11:57 pm Post subject: |
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| Quote: |
| Not sure I would be getting into the hagwon business right now with the government crack down on the rising cost of private education. I see many a hagwon going belly up in the next year or two. |
The governments plan is to nail illegal teachers..but all that is really going to do is:
1. private teachers who are legal will raise their rates, to cover taxes and the fact that there are less of them
2. hagwons will also have less competition if the government gets all the teachers doing illegal privates off the street.
I can only see this plan increase the cost, not raising it. |
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joeyjoejoe
Joined: 24 Sep 2006
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| Posted: Thu Jul 16, 2009 1:02 am Post subject: |
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do all businesses in korea need to be 51% korean owned?
i think that's the case, but only 51% sure
can anyone clarify? |
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Juregen
Joined: 30 May 2006
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| Posted: Thu Jul 16, 2009 1:47 am Post subject: |
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| T-J wrote: |
I've said it on the other threads and I'll say it here, if you are looking for "easy" money, keep looking.
If you are willing to work like any other business owner, read 70, 80+ hours a week, start out losing money until your business grows and deal with the sleepless nights that accompany that particular stress, then by all means start one up! Good luck! |
He is pretty much on the money. I work 12 hours per day, and sometimes even on week-ends.
Profits are paltry but growing, since people are seeing that I am effective in getting kids to learn English.
My guess is it will take another 2 years before I can say I am making money.
If you start with 50.000.000 won in the bank, you are not going to make it.
My investment went over 200.000.000, NOT including real estate purchase.
If I had to be paying rent, I would have given up already.
Everyone thinks it is easy money, but it isn't. It is damn hard work, BUT you can make a difference in the long run, if you are willing to stick to your guns. |
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Juregen
Joined: 30 May 2006
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| Posted: Thu Jul 16, 2009 1:50 am Post subject: |
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| bobbybigfoot wrote: |
| If you are wanting to open your own hagwon so you can teach English the "right way" bear in mind that Koreans are not interested in the "right way". They are interested in the Korean way. |
That is a misconception.
Yes, some shy away from my school because we do not only teach grammar and vocab, we actually teach them how to communicate.
Some mothers are afraid they will "get behind", but the smarter moms know that if the children today do not learn how to use English proficiently, they will be the ones who are really behind.
The winds they are a changing! |
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Juregen
Joined: 30 May 2006
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| Posted: Thu Jul 16, 2009 1:53 am Post subject: |
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| joeyjoejoe wrote: |
do all businesses in korea need to be 51% korean owned?
i think that's the case, but only 51% sure
can anyone clarify? |
I am the sole owner of my business, but it is registered as a "persons business", not as a corporation. Which means, If I go bust and I owe money, they will come after me.
When you open a corporation, then the rules are different. And I am not well aware of the rulings. But! If you go bust, you will only loose what you put in. |
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