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Opening A Hagwon
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meangradin



Joined: 10 Mar 2006

PostPosted: Wed May 18, 2011 6:16 am    Post subject: Reply with quote

Quote:
last I'd heard the courts ruled that its unconstitutional for them to try to limit the fees. They can only make the businesses post them amounts. However, some offices will still try to encourage limits.


not to be argumentative, but I don't believe this to be true. my hagwon was just inspected last month by the school board, and they explicitly and unequivocally stated we had to follow the limits set by the government.

in case you are curious, a hagwon can only legally charge 164,000 (87,000 for a NT and 77,000 for a KT) per month provided they teach 30 hours a month (but a 40 minute class is counted as an hour for some strange reason). this rate is printed on the business license, so there isn't really any room for negotiation. if you teach more than 30 hours you can increase the fee proportionally. in this light, you may see the business appeal of a cdi which runs 3 hour lessons.
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tophatcat



Joined: 09 Aug 2006
Location: under the hat

PostPosted: Wed May 18, 2011 6:35 am    Post subject: Reply with quote

crossmr wrote:
wooden nickels wrote:
Scouse Mouse wrote:
If you want E-2's to advise you about what you can and cannot do on an F visa, you've come to the right place. If you want to discuss owning and working in a study room at home or in a small commercial property, you can head over to AFEK and hear from countless people who are doing it. Legally.

For the record: the only person allowed to legally teach in a study room is the owner. If a foreigner owns the room and has the licence, they can teach. If they don't they can't.

With an F-2-1 (spousal) visa you can do almost everything a Korean can do. With an F-5 you can do everything except vote for president as long as you meet the criteria (language/qualifications being the main obstacle for most things).

If you have heard differently, you have heard wrong. Don't take my word for it though...


I was told, by the Education Authorities/Officials, the only person allowed to work in a study room is the licensed owner. This was the word I received approximately 2 years ago, in my district. Things may be different now.

It may vary from office to office, but there are F-series who own the business and registered their spouse to teach at their study room in addition to themselves. Both people have to be living at the residence where the study room is licensed from what I've read.


If the study room is in the home, the F-series and the Korean spouse can teach from there if they are signed up with the education office.

If the study room is in a dwelling separate from the home, then only one person is allowed (the licensed owner) to each there.
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crossmr



Joined: 22 Nov 2008
Location: Hwayangdong, Seoul

PostPosted: Wed May 18, 2011 6:50 am    Post subject: Reply with quote

tophatcat wrote:

If the study room is in the home, the F-series and the Korean spouse can teach from there if they are signed up with the education office.

If the study room is in a dwelling separate from the home, then only one person is allowed (the licensed owner) to each there.

If the study room is not in the home, it's not a study room, it's a 교습..
study rooms can only be run out of your primary residence.
If you move it off site, it's a different business.

As for the fees, I'll see if I can find it, but it's been linked a few times. I believe Juregen has the info on the MoE not being allowed to actually set the fees, even though they try.

http://www.koreatimes.co.kr/www/news/nation/2011/01/117_79444.html

here is one article, but awhile ago there was an actual article that stated that the courts had said that the MoE regulating tuition was unconstitutional.

Even as it is, it seems the government is indicating a rate of 10,000W/hour according to that article, not the 5000 and change you've indicated.

Also here:
http://www.koreatimes.co.kr/www/news/biz/2009/08/123_50060.html
"A court recently took the side of hagwon, or private institutes, saying it may be against the constitution for the government to put a price cap on hagwon fees."
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tophatcat



Joined: 09 Aug 2006
Location: under the hat

PostPosted: Wed May 18, 2011 6:42 pm    Post subject: Reply with quote

There are different types of 교 씁 , (GYAE-IN KYO-SEOB) is in home, (KYO-SEOB SO) is outside of home.

The wife and I have been running:
Study Rooms (outside of home)
Study Rooms (inside of home)
Hogwon... for 11 years

There are limits on fees for hogwons and study rooms outside of the home.
There is a limit on fees for study rooms inside the home, but the limit is very high.
This does not necessarily apply to adult students.


My wife and I have been in the business for 11 years. The education office CAN SET FEES, it DOES SET FEES, and it CAN and DOES CLOSE businesses for NOT FOLLOWING the FEE GUIDELINES.

All of the previous information is based on years of experience in the business, and with visits to and from the education office.
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Juregen



Joined: 30 May 2006

PostPosted: Thu May 19, 2011 12:32 am    Post subject: Reply with quote

crossmr wrote:
meangradin wrote:
without getting too personal, I am curious as to what you are legally able to charge with either the tutors license or the home school. When I looked in to the home school route, the local education office said I had to post my rates in the room I taught in and those rates could not exceed 4,000 an hour per student. suffice to say, at those rates, it was not worth it. has this changed?


last I'd heard the courts ruled that its unconstitutional for them to try to limit the fees. They can only make the businesses post them amounts. However, some offices will still try to encourage limits.


That ruling still hasn't passed, and they will do everything to derail it, even though it is unconstitutional.
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Juregen



Joined: 30 May 2006

PostPosted: Thu May 19, 2011 12:53 am    Post subject: Reply with quote

meangradin wrote:
Quote:
last I'd heard the courts ruled that its unconstitutional for them to try to limit the fees. They can only make the businesses post them amounts. However, some offices will still try to encourage limits.


not to be argumentative, but I don't believe this to be true. my hagwon was just inspected last month by the school board, and they explicitly and unequivocally stated we had to follow the limits set by the government.

in case you are curious, a hagwon can only legally charge 164,000 (87,000 for a NT and 77,000 for a KT) per month provided they teach 30 hours a month (but a 40 minute class is counted as an hour for some strange reason). this rate is printed on the business license, so there isn't really any room for negotiation. if you teach more than 30 hours you can increase the fee proportionally. in this light, you may see the business appeal of a cdi which runs 3 hour lessons.


That depends on the specific MoE in charge of your area.
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meangradin



Joined: 10 Mar 2006

PostPosted: Thu May 19, 2011 2:35 am    Post subject: Reply with quote

Quote:
That depends on the specific MoE in charge of your area.


I was told by our local MoE that the rates are the same from Seoul to Busan, as the rate is set by the Federal government. Of course, I know most schools, especially the large franchises, find creative ways to get around these limits.

Please post if the law is challenged or changed. My school is at maximum capacity now and I would love to be able to increase our tuition rates.
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crossmr



Joined: 22 Nov 2008
Location: Hwayangdong, Seoul

PostPosted: Thu May 19, 2011 3:03 am    Post subject: Reply with quote

Quote:
Please post if the law is challenged or changed. My school is at maximum capacity now and I would love to be able to increase our tuition rates.

http://www.koreatimes.co.kr/www/news/nation/2011/01/117_79444.html

Quote:
The courts have delivered rulings in favor of hagwon so far.

In July, 2010, the Seoul Administrative Court also sided with a hagwon in Gangnam against the Seoul Gangseo District Office of Education.


Quote:
In October, a suspended English hagwon in Daechi-dong also won a similar case when it filed a lawsuit against the Gangnam District Office of Education.


Get a lawyer, sue.
Hagwons have challenged and won, your lawyer could probably look into the specific of the court cases and see if they match your situation.
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