Unbridled Private Tutoring Costs in Seoul

An article in The Korea Times sheds light on some of the current practices taking place in the world of private tutoring in the wealthy Gangnam district of Seoul.  Beginning last August, the Seoul Metropolitan Office of Education conducted an investigation of underground private tutoring.  Of the illegal cases it uncovered, it chose to publicize one in which a chief tutor hired fifteen others, some of whom were regaled as "star tutors" and charged parents as much as 10 million won ($8,000) per month for private lessons.  Classes were held in apartments or studio apartments that were converted for the purpose.  Students paid 1.7 million won per month for math tutoring while the cost for English, Korean, science and social science classes was about 1 million won per month.  Classes were held eight times a month at 90 minutes per class.

In legal terms, the problem was not the amount of money involved, but rather that this group operated an actual hagwon without reporting it to the education office.  (Click on the illustration to see a full size version)

Monthly Private Education Cost for Preschoolers Averages $255

South Korea is known for its zealous pursuit of education, beginning in the pre-school years.  OECD data over the years have shown that Korean families invest more in private education than parents in other nations.  According to a report in The Korea Times, households in the Seoul metropolitan area last year spent an average of $255 (290,000 won) per month on private education.  This figure is based on a survey of nearly 1,500 households in Seoul.  The same report indicated that an average household spent 420,000 won per month on private schooling for an elementary school student and 568,000 won for a middle school student.

Megastudy.net: Online Tutoring in South Korea

An online tutoring service started in the year 2000 was founded by a former tutor at a private education institute.  His inspiration for the company came while watching a home-shopping channel on television and he intended to help reduce the education inequality that is produced when nearly eight in ten students supplement public education with study in private cram schools, or hagwons.  As noted in a New York Times article by Choe Sang-Hun, Megastudy.net, the online tutoring service Mr. Son Joo-eun started, may be the perfect convergence of South Korean's dual obsessions with educational credentials and the internet.  By tapping into those concerns, which increase during a recession, Megastudy has become South Korea's fastest growing technology company, with sales expected to grow 22.5 percent this year to 245 billion won ($195 million) even as the country's economy is expected to contract.

Online commercial services like Megastudy charge a relatively small fee, averaging 40,000 to 50,000 won ($30 to $40) for each course a student selects from thousands of online tutorials.   Megastudy competes with the government sponsored EBS, which offers similar tutorials for free.    However, it hires teachers with followings that rival those of pop stars.  Last year one Megastudy teacher generated 10 billion won (nearly $8 million) and pocketed 23 percent as his share.

With the country pouring billions of dollars into making the internet ten times faster by 2014, Mr. Son suggested that the world turn to South Korea for a glimpse of what education might look like in the future.  "Offline schools will become supplemental to online education," he predicted.  "Students will go to school, perhaps once a week, for group activities like sports."