South Korea's Private Education Industry Thrives Despite Declining Student Numbers
South Korea’s school-age population is rapidly declining, yet the private education industry continues to boom. Fueled by increased per-student spending and a surge in college entrance exam retakers, hagwon (private academies) are evolving their strategies to maintain profitability.
Rising Costs, Shrinking Population
Between 2020 and 2023, the number of school-age children dropped by 14.5%, falling to 5.02 million in 2024 and projected to plummet further to 3.83 million by 2031. Despite this, total private education spending soared by 40% during the same period, reaching 27 trillion won ($25.2 billion) in 2023. The per-student average also jumped 43.7%, with some families spending over 1 million won per month on education.
Leading private education firms, such as MegaStudyEdu and Hiconsy, are reporting record revenues by shifting focus to high-intensity, premium programs. MegaStudyEdu’s sales reached 718.9 billion won in Q3 2024, nearly matching its total 2023 revenue. Hiconsy, a major player in Seoul’s Daechi-dong hagwon district, has seen fivefold revenue growth over the past five years.
Suneung Retakers Drive Demand
More students are retaking the College Scholastic Ability Test (Suneung) multiple times to secure spots at top universities and medical schools. This has led to a growing demand for elite boarding hagwon, where students live under rigorous study schedules. Digital Daesung, a leader in this sector, saw 80% of its Q3 2024 revenue of 131.6 billion won come from online lectures and boarding programs. The cost for these intensive courses has risen significantly, with full-time boarding hagwon now charging up to 3.5 million won per month—equivalent to an average worker’s monthly salary.
Education as an Investment
Despite the hefty price tag, parents view private education as a crucial investment in their children’s future. Institutions like Jongno Hagwon report that parents are willing to pay over 4 million won per month, including meals, for structured environments that maximize university admission chances.
As South Korea’s student population continues to decline, the private education industry’s ability to adapt and capitalize on changing demands ensures its continued success in the years ahead.
Accommodation powered by KOHO
**Linkedin | Instagram | Kakaotalk**
E. [email protected] A. Yonsei-ro, Seodaemun-gu, Seoul, South Korea, 03722
☾ Mode: cmd/ctrl + shift + L
©2025 Korea Friends • All rights reserved • Privacy Policy