[Education in Korea Loses Its Way]⑥ Subjects Split Like Cells: Analyzing the Surge in Private Education Costs [Exclusive]

Despite 200,000 Fewer Students, Private Education Costs Rise by 10 Trillion Won
The Irony Created by the “Splitting” of Subjects at Academies
English: “Phonics Classes, Grammar Reinforcement Classes...”
Math: “Geometry Math, Calculation Reinforcement, Creative Thinking Math...”
One Academy Class for Every Two Students in Seoul

The private education market has reached 30 trillion won. The expansion of private education, epitomized by the so-called "seven-year-old exam" phenomenon, has been driven by parents' anxiety and desire not to let their children fall behind, as well as by inconsistent education policies that have led to the collapse of public education.

According to Statistics Korea and the Ministry of Education, the amount spent by Koreans on private academies for their children increased from 19.4 trillion won in 2020 to 29.2 trillion won in 2024, a rise of about 10 trillion won. Considering the trend of nearly 2.5 trillion won in annual growth, it is expected that by the time this year's statistics are released, the figure will far surpass 30 trillion won and approach 32 trillion won. These are only the numbers captured in official statistics; parents who have experienced the admissions process know firsthand that the actual amount, including money not reflected in the statistics, is much higher.

The phenomenon of more than 30% of the nation’s total education budget?around 100 trillion won?being spent on private education has led to a vicious cycle of low birth rates, avoidance of marriage, and reduced consumption.

However, we are faced with a perplexing question: If the school-age population keeps shrinking, why does spending on private education continue to rise? The Asia Economy reporting team investigated the realities of the private academy market and analyzed data with a National Assembly member’s office to find the answer.

Subjects Are Split and Split Again

According to Statistics Korea, the number of elementary, middle, and high school students decreased by 214,000, from 5,346,000 in 2020 to 5,132,000. During the same period, household spending on private academies increased by about 10 trillion won, from 19.4 trillion won to 29.2 trillion won. Each year, the amount hits a new record high. When calculated per student, private education spending rose from 3.63 million won in 2020 to 5.67 million won in 2024. This year, it is expected to exceed 6 million won per student.

What is the secret behind this? The answer lies in the "splitting" strategy of academies. Much like cell division in living organisms, private academies have been expanding their market share by dividing subjects, creating classes by age group, by day of the week, and by student proficiency level.

Asia Economy, together with the office of National Assembly member Kang Kyungsook of the Progressive Innovation Party, analyzed data on "Seoul Metropolitan Office of Education-registered academies and tutoring centers." As of the beginning of this year, there were 28,063 academies and tutoring centers in the 25 districts of Seoul.

Specifically, there were 14,796 academies and 13,267 tutoring centers. The number of subjects offered by these institutions reached an astonishing 339,535. This means that, on average, each academy offers 12 different subjects.

For example, English academies used to focus mainly on reading comprehension or speaking, but now offer additional classes such as phonics and grammar reinforcement. Within the same subject, classes are subdivided by difficulty or tailored for specific target groups, resulting in "subject cell division."

Nowadays, math academies typically divide their curriculum into basic math, school exam math, general math, and intensive math. With more academies allowing students to enroll in two or three classes simultaneously, the system of subject-specific elective courses, once seen only in large-scale test prep centers, has spread to most academies for all age groups.

One Academy Class for Every Two Seoul Students

As of last year, there were 766,206 elementary, middle, and high school students in Seoul, and 86.1% of them (according to the 2024 private education expenditure statistics) participated in private education. Considering that approximately 340,000 subjects are offered by academies and tutoring centers in Seoul, there is roughly one academy class for every two students in the city.

While it is extremely rare for only two students to take a single class, most academies require a minimum of four students per subject. In other words, each student is taking more than two private academy subjects. This is what makes Korea a "republic of private education."

This inevitably leads to an increase in both the time spent on private education and the amount spent. According to the Ministry of Education’s 2024 statistics, the participation rate in private education among Seoul students is 93.1% for elementary, 85.1% for middle, and 74.7% for high school students. On average, they spend 9.0, 9.8, and 9.2 hours per week, respectively, on private education (an average of 9.3 hours). Considering that most academy classes are held every other day, these figures suggest that each student is taking two or three classes.

Among the 86.1% of Seoul students who participate in private education, the average monthly spending is 782,000 won. According to the Seoul Metropolitan Office of Education, the average tuition per subject is 345,845 won for academies and 196,319 won for tutoring centers (excluding the top and bottom 10%). These figures also support the conclusion that each student is taking two or three private education subjects.

The Secret of "Every-Other-Day" Classes... Filling in the Gaps

To expand the private education market and maximize profits, academies employ "special" strategies. One representative example is operating every-other-day or twice-a-week classes instead of daily classes. This is because they can charge a higher average fee per hour compared to daily classes. Additionally, from the perspective of parents and students, this allows them to fit in other subjects in between, and academies have nothing to lose. As a result, a single student can now take five or six subjects per week.

Kim, a parent of a high school student (age 45), said, "When my child was in elementary school, they took science experiments, worksheet classes, English academy, math academy, and music lessons. Even though attending five or six academies seems like a lot, it’s possible because, except for English and math, the other classes are only once a week."

On the 23rd, various academies are located in a building in the academy district of Mokdong, Yangcheon-gu, Seoul. Photo by Kang Jinhyung

On the 23rd, various academies are housed in a building in Mokdong, Yangcheon-gu, Seoul. Photo by Kang Jinhyung

The age range for private education continues to expand. The target age for English academies is getting younger, now including infants and toddlers, and as the number of repeat test-takers increases, the consumer base for admissions academies is also broadening.

Goo Bonchang, director of policy research at the organization World Without Worries About Private Education, said, "The private education market is becoming more expensive and targeting younger ages. Private education spending is now becoming as essential as food expenses." Kim Daewook, professor of early childhood education at Gyeongsang National University, said, "Some academies split a two-hour class into three 40-minute sessions and charge 200,000 won per session, so a two-hour class can cost up to 600,000 won."

Private Education Costs Lead to Low Birth Rates

According to the Household Trends Survey for the fourth quarter of 2024, the average monthly household expenditure was 3.91 million won, of which 2.903 million won was consumption expenditure (excluding non-consumption items like interest and taxes). Given that the average monthly private education cost for elementary, middle, and high school students is 474,000 won, this means that 16.3% of consumption expenditure is spent on academy fees. Considering that 14% of households do not participate in private education, the actual percentage is likely even higher.

Private education expenses place a significant burden on households and contribute to the low birth rate problem. The Organisation for Economic Co-operation and Development (OECD) identified "high private education spending" as a cause of Korea's low birth rate in April.

Jung Jaehoon, professor at Seoul Women's University and head of the Gyeongbuk Happiness Foundation, described private education spending as a type of "pressure cost" that leads to low birth rates. Professor Jung said, "Private education costs have already become a 'pressure cost' that cannot be reduced or solved by policy support alone and require structural reform. The competition-driven education structure in Korean society, which pursued talent-centered growth strategies, has produced these pressure costs." He added, "To eliminate pressure costs, not only must the industrial ecosystem be restructured, but educational reform is also necessary."

On the 23rd, students are moving to academies after finishing school classes in the academy district of Mokdong, Yangcheon-gu, Seoul. Photo by Kang Jinhyung