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Another ESL employer in Japan goes bust = Korea's future?
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wooden nickels



Joined: 23 May 2010

PostPosted: Sat Sep 25, 2010 4:19 am    Post subject: Reply with quote

SinclairLondon wrote:
My girfriend's school has 700 students. About 500 elementary at 240,000 a month and 200 middle school students at 220,000 a month. 6 foreign teachers, 13 Korean teachers, 3 desk teachers. Do the math.


So, are you claiming the school:

is struggling?
is breaking even?
is doing well?
is making a fortune?

It would seem it is making a fortune. However, it could be any of the above depending on many variables.
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kimchipig



Joined: 07 Mar 2008

PostPosted: Sat Sep 25, 2010 8:35 pm    Post subject: Reply with quote

I worked in Japan before I was in Korea and the writing was on the wall even then, like in 1992. Learning English was the "cool" thing to do in the 1980s when there was plenty of excess cash around but when budgets tightened, English lessons were often the first to go. The schools in Japan didn't help themselves much by paying their teachers peanuts and hiring them based on their looks. Neither was treating foreigners teaching English as second class citizens doing much to have said foreigner do anything to make this workplace a more successful operation. Interac was almost as bad as Nova. It has just taken almost twenty years for the English boom in Japan to really fizzle out.

Move to Korea. When I went to Korea in 1994, people chased me down the street to offer me jobs. My first job paid me W1.2m which at the time was C$2300 a month and the cost of living was dirt cheap. I had absolutely no problem living on W300k a month and I lived well. With a couple of privates I thought I had it made. However, things changed with the 1997 crash it they never recovered. Koreans have basically made all the mistakes that the Japanese have made. I saw a post stating how jobs in Korea were getting scarce and I was flabbergasted. I also saw my old university job of ten years ago advertised for less money that I was making then. When Korean xenophobia added into the mix, it is hard to attract and retain good teachers in Korea. The money is simply not there for the aggravation. That is the reason I left in 2004.

China is the place to be. There are 1.4 BILLION people there wanting to learn stuff and huge numbers of people who would spend their last yuan to get their kid an English lesson. The market is so huge it will not run out in a couple of generations. The cost of living is still cheap and you could very easily make 10,000 yuan a month with a couple of privates. That will keep you very, very well in China. I spent six weeks in Shanghai this summer and I was getting 300 yuan per hour teaching privates and with a few calls I had people banging on my door. I didn't actually plan to teach at all, we were just there to visit family, but that is what worked out.

Compared to Korea, China is much easier to live in, in my opinion anyway. The xenophobia that is all pervasive in Korea is non-existent and people are usually very reasonable and rational. Of course I have an easier time since my wife is Chinese and I have good connections. However I think an ambitious foreign teacher could do exceptionally well in China provided he/she knows their stuff
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liveinkorea316



Joined: 20 Aug 2010
Location: South Korea

PostPosted: Sun Sep 26, 2010 1:04 am    Post subject: Reply with quote

kimchipig wrote:
I worked in Japan before I was in Korea and the writing was on the wall even then, like in 1992. Learning English was the "cool" thing to do in the 1980s when there was plenty of excess cash around but when budgets tightened, English lessons were often the first to go. The schools in Japan didn't help themselves much by paying their teachers peanuts and hiring them based on their looks. Neither was treating foreigners teaching English as second class citizens doing much to have said foreigner do anything to make this workplace a more successful operation. Interac was almost as bad as Nova. It has just taken almost twenty years for the English boom in Japan to really fizzle out.

Move to Korea. When I went to Korea in 1994, people chased me down the street to offer me jobs. My first job paid me W1.2m which at the time was C$2300 a month and the cost of living was dirt cheap. I had absolutely no problem living on W300k a month and I lived well. With a couple of privates I thought I had it made. However, things changed with the 1997 crash it they never recovered. Koreans have basically made all the mistakes that the Japanese have made. I saw a post stating how jobs in Korea were getting scarce and I was flabbergasted. I also saw my old university job of ten years ago advertised for less money that I was making then. When Korean xenophobia added into the mix, it is hard to attract and retain good teachers in Korea. The money is simply not there for the aggravation. That is the reason I left in 2004.

China is the place to be. There are 1.4 BILLION people there wanting to learn stuff and huge numbers of people who would spend their last yuan to get their kid an English lesson. The market is so huge it will not run out in a couple of generations. The cost of living is still cheap and you could very easily make 10,000 yuan a month with a couple of privates. That will keep you very, very well in China. I spent six weeks in Shanghai this summer and I was getting 300 yuan per hour teaching privates and with a few calls I had people banging on my door. I didn't actually plan to teach at all, we were just there to visit family, but that is what worked out.

Compared to Korea, China is much easier to live in, in my opinion anyway. The xenophobia that is all pervasive in Korea is non-existent and people are usually very reasonable and rational. Of course I have an easier time since my wife is Chinese and I have good connections. However I think an ambitious foreign teacher could do exceptionally well in China provided he/she knows their stuff


...so you haven't been living in Korea for going on 6 years?

Korea is not Japan. The same way Canada is not the USA, Argentina is not Brazil, and New Zealand is not Australia. Do you need me to continue?

English in Korea is not done for fun, it is a means to an end. While the end is still there the money will be there for study.

I would argue that learning English has contributed to Korea's stunning economic development of the last 20 years. Koreans probably would too. From the President down they all believe this.

Japan is different. So is China.
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take a rest



Joined: 15 Sep 2010
Location: self-banned

PostPosted: Sun Sep 26, 2010 1:50 am    Post subject: Reply with quote

You know, on second thought, if my middle school students' interest in English is any indication of the future of this country, I give the whole thing maybe another 20 years.
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Hotwire



Joined: 29 Aug 2010
Location: Multiverse

PostPosted: Sun Sep 26, 2010 4:25 am    Post subject: Reply with quote

China's not Xenephobic?

Gwailo!
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plato's republic



Joined: 07 Dec 2004
Location: Ancient Greece

PostPosted: Sun Sep 26, 2010 5:14 am    Post subject: Reply with quote

There's a clear correlation here between the state of the Japanese economy and the decline of TEFL in Japan. Once the Japanese economy tanked in the early 90's, the amount of people who could afford to pay the high fees associated with studying at a private language institute also began to gradually decline. Fast forward roughly two decades and now we're starting to see the death of TEFL in Japan. There'll still be a market for learning English in Japan, but just not on the same scale as twenty to thirty years ago.

Regarding the 'cool' aspect of studying English among Japanese, I would agree with that to a degree, however, having taught in Japan for three years I found that a majority of my adult students were studying the language not because it was the cool thing to do, but for reasons such as travel, business, overseas study etc.

Now, if the Korean economy were to tank on the same scale as what happened in Japan, and for a sustained period, it wouldn't surprise me to see the vast majority of mom'n'pop hagwons go bust overnight and perhaps a few larger chains as well. If that were to happen, we might find ourselves talking about the death of TEFL in Korea. For as long as the Korean economy continues to purr along, and while parents can still afford to send their kids to private institutes, there'll still be a large market for TEFL in the ROK.
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Weigookin74



Joined: 26 Oct 2009

PostPosted: Sun Sep 26, 2010 6:58 am    Post subject: Reply with quote

SO, what is the Vietnam average? I spoke to someone making $1500.00 US but had to pay for his apartment. I think it has potential; but isn't there yet. If they paid $2000 or more, it would seem like a good deal. If they boost their salaries a little more, you'd probably see a mass exodus from Korea. BUt, I think they are more strict on TESOL though.
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misher



Joined: 14 Oct 2008

PostPosted: Sun Sep 26, 2010 8:20 am    Post subject: Reply with quote

Quote:
There are 1.4 BILLION people there wanting to learn stuff and huge numbers of people who would spend their last yuan to get their kid an English lesson. The market is so huge it will not run out in a couple of generations. The cost of living is still cheap and you could very easily make 10,000 yuan a month with a couple of privates. That will keep you very, very well in China. I spent six weeks in Shanghai this summer and I was getting 300 yuan per hour teaching privates and with a few calls I had people banging on my door. I didn't actually plan to teach at all, we were just there to visit family, but that is what worked out.


Except you have to live in China.

No thanks.
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youtuber



Joined: 13 Sep 2009

PostPosted: Sun Sep 26, 2010 8:53 am    Post subject: Reply with quote

I get that Korea is not Japan...but look at the similarities!

JET was a government programs that is slowly dwindling and private dispatch agencies have taken over to reduce costs.

EPIK and SMOE are government programs that could (and probably should) be taken over by other agencies to reduce costs.

Japan also has small mom and pop academies, but most of the teachers in Japan are/were employed by big chains and JET just as most teachers in Korea are employed by EPIK, SMOE, and other big chains.

The companies that are failing are the big franchises like NOVA, GEOS, ect. Why do they fail? Not enough money.

Granted, Japan's economy now sucks. But look at Korea's economy! How is it any different? Both are heavily export based! Similar family owned conglomerates prevail! No resources whatsoever to speak of! And both will lose out to China.

The evolution of Korea will probably be the Japan of today. It just seems that the two countries are too remarkably similar.
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kimchipig



Joined: 07 Mar 2008

PostPosted: Sun Sep 26, 2010 9:12 am    Post subject: Reply with quote

plato's republic wrote:
There's a clear correlation here between the state of the Japanese economy and the decline of TEFL in Japan. Once the Japanese economy tanked in the early 90's, the amount of people who could afford to pay the high fees associated with studying at a private language institute also began to gradually decline. Fast forward roughly two decades and now we're starting to see the death of TEFL in Japan. There'll still be a market for learning English in Japan, but just not on the same scale as twenty to thirty years ago.

Regarding the 'cool' aspect of studying English among Japanese, I would agree with that to a degree, however, having taught in Japan for three years I found that a majority of my adult students were studying the language not because it was the cool thing to do, but for reasons such as travel, business, overseas study etc.

Now, if the Korean economy were to tank on the same scale as what happened in Japan, and for a sustained period, it wouldn't surprise me to see the vast majority of mom'n'pop hagwons go bust overnight and perhaps a few larger chains as well. If that were to happen, we might find ourselves talking about the death of TEFL in Korea. For as long as the Korean economy continues to purr along, and while parents can still afford to send their kids to private institutes, there'll still be a large market for TEFL in the ROK.


The Korean economy tanked on an even larger scale in 1997 than the Japanese economy tanked in 1992. There was nary a bank left. The entire economy of Korea stopped dead. The exchange rate went from W800 to a US dollar to W2000 almost overnight. It has never recovered. The levels of spending on English lessons now pales in comparison to pre-1997 levels. Real salaries for ESL teachers are a fraction of what they were before the crash. In 1996 I was saving C$2300 a month and living high off the hog. Korea has never recovered to the level it was. There is simply too much competition from China for most of the stuff Korea made and still makes.

I have been in ESL business for eighteen years and I have seen the trends. ESL in Korea reached its pinnacle circa 1996 and it has been a gradual decline since then. Japan peaked in the late 1980s. China is still on the rise and will be for the foreseeable future.

Fact is, if you want to make money, China is much better. Yes, living in China presents certain challenges, but living in Korea in 1994 wasn't exactly easy, either. Yes, there is xenophobia in China. In fact, it was much worse in Korea fifteen years ago than it is now. However, a fat payday makes it much easier to swallow. Also, from my standpoint, China is much easier for me, anyway, due to the support of a wife, friends and in-laws.
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OneWayTraffic



Joined: 14 Mar 2005

PostPosted: Sun Sep 26, 2010 2:03 pm    Post subject: Reply with quote

I don't know; I found Korea easier and easier every year that I spend there. Of course I had a wife and contacts, so the reasons you like China go both ways. I'd still be there except for my kids and the lifestyle.

I'm back in NZ now and enjoying being able to speak to people and go fishing on the beach. Also enjoying being able to actually have a lifestyle. But I don't like having to struggle for a job; I had it so easy in SK. I'd go back in a second if it was just me.
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liveinkorea316



Joined: 20 Aug 2010
Location: South Korea

PostPosted: Sun Sep 26, 2010 2:10 pm    Post subject: Reply with quote

kimchipig wrote:
plato's republic wrote:
There's a clear correlation here between the state of the Japanese economy and the decline of TEFL in Japan. Once the Japanese economy tanked in the early 90's, the amount of people who could afford to pay the high fees associated with studying at a private language institute also began to gradually decline. Fast forward roughly two decades and now we're starting to see the death of TEFL in Japan. There'll still be a market for learning English in Japan, but just not on the same scale as twenty to thirty years ago.

Regarding the 'cool' aspect of studying English among Japanese, I would agree with that to a degree, however, having taught in Japan for three years I found that a majority of my adult students were studying the language not because it was the cool thing to do, but for reasons such as travel, business, overseas study etc.

Now, if the Korean economy were to tank on the same scale as what happened in Japan, and for a sustained period, it wouldn't surprise me to see the vast majority of mom'n'pop hagwons go bust overnight and perhaps a few larger chains as well. If that were to happen, we might find ourselves talking about the death of TEFL in Korea. For as long as the Korean economy continues to purr along, and while parents can still afford to send their kids to private institutes, there'll still be a large market for TEFL in the ROK.


The Korean economy tanked on an even larger scale in 1997 than the Japanese economy tanked in 1992. There was nary a bank left. The entire economy of Korea stopped dead. The exchange rate went from W800 to a US dollar to W2000 almost overnight. It has never recovered. The levels of spending on English lessons now pales in comparison to pre-1997 levels. Real salaries for ESL teachers are a fraction of what they were before the crash. In 1996 I was saving C$2300 a month and living high off the hog. Korea has never recovered to the level it was. There is simply too much competition from China for most of the stuff Korea made and still makes.

I have been in ESL business for eighteen years and I have seen the trends. ESL in Korea reached its pinnacle circa 1996 and it has been a gradual decline since then. Japan peaked in the late 1980s. China is still on the rise and will be for the foreseeable future.

Fact is, if you want to make money, China is much better. Yes, living in China presents certain challenges, but living in Korea in 1994 wasn't exactly easy, either. Yes, there is xenophobia in China. In fact, it was much worse in Korea fifteen years ago than it is now. However, a fat payday makes it much easier to swallow. Also, from my standpoint, China is much easier for me, anyway, due to the support of a wife, friends and in-laws.


How long have you been away from Korea? Sounds like years at least. Things are still humming along here. Oh, and in case you were still unaware, Korea is not Japan. Don't be confused because they look similar, or are close in proximity. There are enough differences between the countries to make the "Oh Japan did this so Korea will too" statements sound silly.

Japan started WW2 in the Pacific. Korea was clobbered by Japan during that time.

There is one huge difference. The people are different. Governments different. Korea has a President. Christianity is very popular in Korea, not so in Japan. Japan is a mature economy with a per capita GDP in the region of $US44,000 per annum while Korea's is less than half that.

I think there are decades lesft in the Korean ESL scene...maybe more.
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youtuber



Joined: 13 Sep 2009

PostPosted: Sun Sep 26, 2010 6:24 pm    Post subject: Reply with quote

^How are the governments so different? Both are corrupt democracies.

As far as being Christian, I don't see how that relates to an economy at all. Some of the worst scammers in Korea are "Christian". Business is business.

And the societies are organized in fundamentally the same way. Social mobility is difficult, elders are greatly respected, and if you aint Korean/Japanese, you are going nowhere (ie xenophobia)

Don't seem all that different to me...
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liveinkorea316



Joined: 20 Aug 2010
Location: South Korea

PostPosted: Sun Sep 26, 2010 7:00 pm    Post subject: Reply with quote

youtuber wrote:
^How are the governments so different? Both are corrupt democracies.

As far as being Christian, I don't see how that relates to an economy at all. Some of the worst scammers in Korea are "Christian". Business is business.

And the societies are organized in fundamentally the same way. Social mobility is difficult, elders are greatly respected, and if you aint Korean/Japanese, you are going nowhere (ie xenophobia)

Don't seem all that different to me...


The same comparisons could be made between Australia and the US, Canada and the US, Mexico and Brazil.

But the economies of these countries are all on different trajectories. I'm, sorry but simply because the countries have some things in common and are beside eachother you cannot simply extend this that Korea will always follow Japan. That is simply wrong.

Are you saying that Canada will simply follow the USA? Or that Ploand will become like Germany simply because they are close and somehow similar? Such analysis is amazingly simplistic.
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shostahoosier



Joined: 14 Apr 2009

PostPosted: Sun Sep 26, 2010 8:19 pm    Post subject: Reply with quote

youtuber wrote:
^How are the governments so different? Both are corrupt democracies.

As far as being Christian, I don't see how that relates to an economy at all. Some of the worst scammers in Korea are "Christian". Business is business.

And the societies are organized in fundamentally the same way. Social mobility is difficult, elders are greatly respected, and if you aint Korean/Japanese, you are going nowhere (ie xenophobia)

Don't seem all that different to me...


Funny how you call someone out on using a comparison that has no basis on the situation, then you go ahead and use one yourself.

Ive seen so many people on this board go out of their to say how vastly different Japan and Korea are...now they're suddenly the same?!

Anyway Korea's ESL scene will probably eventually go the same way as Japan's, but not anytime soon. There are still plenty of ways to cut out fat from the ESL budget (housing, airfare, hours/schools worked)

Keep in mind that Interac isnt an ESL school. It's basically a temp agency that hires "teachers" and sends them out on assignments. Them going out of bust isnt as big a deal as if Aeon were to go under.

Personally I think I will head to China next. When I visited, I was really surprised by how nice things were. It's not perfect, but it's not the dirty, 3rd world country that people make it out to be. Well, at least not in the major urban areas. I was also surprised by how friendly Chinese people can be. The pay isnt much, but I get the feeling that there is opportunity there if you're willing to learn Mandarin.
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