Korean Job Discussion Forums

[Dodge7]

Your options are:

1. gong-bu-bang (study room)
2. Uh-din-ee-jeep (my romanization sucks, but it's a day care)
3. Franchisee business (dduk bboki or some other food business)
4. PC Bang

I have goals. I'll be here in Korea for a while--at least the next 10 years as I have a daughter on the way and my wife has a great job. Furthermore, I am repulsed at the thought of teaching kids for that length of time.

We want to open one of the 4 mentioned above maybe within the next 5 years or so. I guess I'd like to hear your advice on which one you think would be most profitable. You don't have to have experience with owning one of these four businesses, but it would be appreciated if you chimed in if you have.

[coralreefer_1]

I am by no means what would be considered a successful business man, but with that said I have contacts and have known people who have opened at least one of the businesses you mention. In that regard, i will give my opinions (some well informed, others based on my own observations and understandings after 8 years here)

1. Study Room - It seems like a simple concept..but the thing is that the profit margin would be pretty small, and from what I have been told, unless you have enough cash/equity to either get a good lease agreement (by that, i mean a space for a low price) then it would be hard to break even, much less turn a profit.

2. Daycare center - Personally I think of all the options mentioned, this one has the greatest potential for profit. With that said however, there is SO much that goes into it that it could possibly turn into the worst headache of your life. The success of most of these depends on good location, and on reputation (which is usually by word of mouth of parents), and as you probably know, mothers are the most fickle people you will ever run across. I know a lady who in the past ten years has gone from nothing to owning 2 well known kindergartens (one a day care, the other regular kindergarten) within 2 blocks of each other in a very wealthy area of the city) and has made enough money over these years that just last year she paid out the equivalent of 15million USD IN CASH to build a 5 story kindergarten/hagwon. I mention this because of her payment...because she never wants to have debt, the didnt take a loan, or a lien out of her other properties..she simply shelled out 15 Million for the construction, furnishing, licensing...etc etc.

3. A franchise business might be good IF you hit the hot thing in the right spot. The Taco Bell in Itewon is a good example. The hot thing now is Smoothie King...so if you are ready to jump..that is probably the best thing to do. The ddukbokki, or some other thing can be good also, but it really depends on the location much more than the service you provide or the quality of the product.

4. PC Bang - I would highly recommend you avoid this one. Like the study room it may be a business that is pretty hands off in regards to day to day activity, but recent studies and reports in the Korean papers say something like 45% of them are out of business within a year, and the others that survive longer and barely getting by.

[jdog2050]

[fosterman]

where does your passion lay?

you really into little babies?

you into teaching?

you into computers?

there's your answer..

[Lazio]

1., No
2., No way
3., Hell no
4., Are you out of your mind?

Are you certified in early childcare? That�s a requirement.
Guess which country is the 198th on the list of birth rates? Korea!
If you do well, have connections and get lucky etc. than a BIG! daycare with at least 100 kids will get you some nice money but that requires a huge initial investment. Those daycares on the ground floor of apartment buildings aren�t making much profit.

[nautilus]

Kiss bang.

Although you might have to wear make up in the beginning.

[crisdean]

Personally if I were able I'd open a poker room in either Seoul or Busan (which would have to be done in co-operation with one of the existing casinos due to the gambling restrictions here.)

[singerdude]

If I had the money for the start-up costs, I would open a gym. The monthly costs for gyms here are insane, and the equipment isn't top notch. I bet if you open a gym with new equipment, it would do pretty well. Well, if you get a good location, that is.

I disagree with some of the posters about a study room. I think there is potential to make a pretty good profit with not much overhead. Also, you don't need much money either to get it going. You can use your apartment or house. Officetel supposedly is illegal. The hardest part is getting students, but with persistence and constant advertising, it can happen.

[Daniel1981]

I read on here the other day that regarding gongbu-bang (study room)

1 - cannot be in a residence

2 - can only have one teacher


number 2 to me is really discouraging as that severely limits the growth potential and you're not really managing or running a business so much as working. what's the exit strategy here?

[singerdude]

I think the exit strategy is to build a study room with at least 40 students, then try to take them to your hagwon. If even half of them go with you, at least you have a decent starting base.

[Ballerina2012]

Laundromat with REAL dryers!

[toby99]

[Otherside]

[fermentation]

Kiss Bang is probably a better idea since they're legal. Stock up with foreign (white) girls and Korean dudes will line up.

[atwood]

Lots of new franchises are popping up--Smoothie King and Jamba Juice, Subway and Quizno's, Jaws and others for Korean food, so that's working for others.

If you don't like teaching kids, or just teaching in general, I don't know why you'd want to open a daycare or study room.

You might look to go partners with someone so that you could keep teaching for a while to have an income while your business gets on its feet.

An Internet business would be another way to go. If you go to Yongsan these days it's usually pretty dead because those guys are doing most of their business on the Internet.