Instead of a Red Pen, a Cane; Eye-Level Teachers Provide Home Care... No Children to Teach

Leading 'Ppalgan Pen' and 'Noonnoppi' Study Material Companies
Expanding into Funeral and Elderly Care Services

The education industry has started to pick up canes instead of pens. As the number of students decreases and the elderly population increases due to low birth rates and aging, they have begun expanding their businesses targeting these groups.

Leading domestic education companies such as Kyowon, Daekyo, and Woongjin Thinkbig have recently strengthened their senior business sectors. They have primarily focused on learning materials like ‘Red Pen’ and ‘Noonnoppi’ aimed at infants and children. However, the school-age population targeted by their core businesses has been sharply declining every year, causing their business models to become unstable.

The school-age population, defined as ages 6 to 21, was 8.92 million in 2015 but dropped to 7.88 million in 2020, a decrease of over one million in five years. This year, the school-age population further decreased to 7.14 million. In contrast, the population aged 65 and older increased from 6.54 million in 2015 to 9.93 million this year. Ultimately, education companies have begun turning their attention to targeting the middle-aged and elderly.

The fastest to adapt their business was Kyowon. Through its group affiliate Kyowon Life, Kyowon entered the funeral service business starting with the acquisition of Pyeongtaek Funeral Hall in 2017. Since then, it has purchased and operated additional funeral halls, nurturing the funeral business as a core sector. Last year, it further strengthened its competitiveness in the funeral business by launching a new funeral brand, ‘Kyowon Yeum.’

Kyowon is accelerating business expansion by launching bundled products that link funeral services with its education and travel services. For example, customers can convert funeral service payments into education services or travel products from its travel affiliate Travel Easy. These bundled products have gained popularity, helping Kyowon rise to third place in the funeral service industry based on advance payments.

Daekyo is expecting a second ‘Noonnoppi’ through its affiliate Daekyo New Life. Daekyo New Life provides services ranging from long-term elderly care insurance services such as daycare and home care to operating caregiver training centers and developing cognitive enhancement content. Daekyo New Life is accelerating its business expansion, recently acquiring a long-term care direct management center from the silver tech company Korea Senior Research Institute to enhance competitiveness.

Woongjin Thinkbig has partnered with Freed Life, the number one company in the funeral service industry. Freed Life offers ‘Thinkbig Education Voucher Points’ that allow customers to use Woongjin Thinkbig’s artificial intelligence (AI) education services, linking funeral services with education. This targets middle-aged and elderly customers who can gift these services to their grandchildren.

The education industry is expected to focus more on strengthening new businesses as their annual performance continues to decline. Woongjin Thinkbig reported an operating profit of 3.7 billion KRW in the third quarter last year, down 69% from the same period the previous year. Daekyo’s core education service sector recorded operating losses for three consecutive quarters. Kyowon’s education business is also experiencing declining performance every year.