Korean Job Discussion Forums

[AustinOfTheOzarks]

I don't really know where else to post this.....
How much money does it take to start a hagwon and get it off the ground? Mostly interested in Gwangju.

[ttompatz]

[nathanrutledge]

[huffdaddy]

[TheUrbanMyth]

[nathanrutledge]

[AustinOfTheOzarks]

My wife is a Korean, so the hagwon would probably be in her name.....less red tape. I just don't know what it would take to lease a space, get a bus, payroll, etc. My wife thinks it would take something like 500 million to a billion won. I think she's way off.

And yes, I was talking about Gwangju in the south.

[BoholDiver]

I would estimate 150 million to do it right.

Any decent building will most likely run you 50 million in key money.

Desks, blackboards, etc, will probably be another 5-10 million. I have no idea how much those things cost.

A van is 30 mill or up if you buy new, or you can risk buying used. Also, you can hire a free-lancer driver who has his own van, but you will have to pay him for gas, mileage, insurance, etc. He'll ding you for everything, but there is less of a start-up fee.

Also, to not be just like many of these fly-by-night places, you will probably need a slush fund of 20 mill + for your first few months. It might take a while to become profitable.

You might be better off buying out an existing hagwon.

[northway]

With the way hagwons come and go in Korea, I would assume it's somewhat like the restaurant business in the States wherein you can probably buy a lot of the classroom stuff you would need in fine secondhand condition, thus letting else pay the absurd markup on brand new furniture.

[T-J]

[PatrickGHBusan]

TJ is your best bet if you want factual advice on what it takes to start and run a hakwon.

My advice is:

Have a business plan BEFORE you do anything else. This plan should include start up costs, estimated monthly expenses, estimated monthy income and some solid market research.

You want to research areas in depth before moving forward. I former co-worker of mine (she is Korean) opened a Hakwon in Busan a few years ago. She had prepared for a solid year before going forward with it and still struggled financially for the first 6 months while working 7-days a week.

Now she is doing very well but wants to move her school to a different part of Busan. She has been looking at places for over 10 months.

Running a hakwon will also be demanding. You will need to deal with parents, students, staff (both Korean and Foreign), competition....

Find some professional advice!

[Epik_Teacher]

A Korean American friend of mine (who is married to a Korean) started a hakwan in 1997, he's still going and he's doing OK. But he hates it! He has to juggle "parents who demand their geniuses become fluent in 5 weeks," teachers, students, Korean public officials ("who always want a cut"), etc... Basically as he put it, "You have to kiss everybody's ass to stay in business." I think he's going to stay open for a couple more years and then sell out lock, stock and barrel.

[bcjinseoul]

I know a guy who's about to start a hogwon in Taiwan. From what I've heard, it's way easier and cheaper down there; BUT keep in mind the English Fever there isn't like what it is in Korea...if anything, more like Japan. There are less hogwons and a lot less people seemed interested, and more of the general population seems fluent in English.

[wooden nickels]

[supernick]