ITA CODE: APS

Summary

As education levels and disposable incomes continue to grow in Korea, Korean parents and students are considering different educational options at all stages of education. An area that is experiencing impressive growth lately is in the primary and secondary education market. The number of students studying overseas almost tripled over the past five years (2002 to 2006) from 10,132 to 29,511. Korean parents consider money and time spent on their child's education as the best investment they can make. They therefore seek the best education opportunities available. The increase in frequent travel abroad also exposes Koreans to international education options. Since Korean society is demanding better and higher English proficiency to compete as a small country in this interconnected world, students are often interested in studying overseas to improve their English capabilities. The general understanding is that higher English proficiency will translate into increased competitiveness in the Korea job market. Parents realize that sending their children to study overseas early on gives them a head start in achieving this goal.

The expected outcomes from overseas study in primary and secondary school are to enter prestigious higher education institutes overseas, to get a better job, and to improve English language proficiency. Parents gain knowledge of studying overseas from friends and relatives living overseas, school homepages, and educational consulting agents. In the case of most elementary school students, most of them plan to return to Korea before entering middle school and very few students plan to stay until higher education. In the case of high school students, they plan to stay longer, as their main purpose is to enter a college or university overseas. After graduation from higher education institutions overseas, most students plan to come back to Korea to begin their careers. They think the competitiveness of their English proficiency and global citizenship can benefit them in their job search.

Market Demand

Korea's rapid economic development over the past 50 years has led to higher disposable incomes as well as lower birthrates. Korea has one of the lowest birthrates in the world, with around 1.26 children per family. Low birthrates have a dramatic effect on education-related industries. Despite the decrease in the number of children, a few factors are still driving high growth rates in the education sector. Koreans are beginning informal education at a younger age, often as young as three or four. Educational opportunities for younger children in special areas, such as foreign languages and sciences, are expanding. When it comes to education, Korean parents opt for the best quality possible and are willing to invest the funds to achieve it.

Traditionally, education has been an important focus of the Korean government, and it has tried to reduce the gap in educational opportunities as much as possible. The ratio of students continuing on to higher stages of education illustrates the effect of the government's efforts, along with the general cultural penchant for education.

Ratio of Students Continuing on to Next Stage of Education

Stage	Ratio
Elementary to Middle School	99.9%
Middle to High School	99.6%
High School to Higher Education Institution	82.8%

Source: Korea Education Development Institute (KEDI), 2007

On a superficial level, educational opportunities are equally available to all in Korea. However, a gap does exist. There are two different types of high schools in Korea, "normal" high schools and special purpose high schools, such as foreign language and science high schools, which have selective admissions policies.

Another characteristic of the Korean education system is the comprehensive examination to enter higher education. The future of every student is impacted by the result of this examination. In order to get higher scores, both parents and students invest enormous effort and funds. Those with greater financial means are exposed to the top educational opportunities.

The competition to enter a good higher education institution starts in middle school. This type of education system with its focus on preparing for college entrance examinations does not develop an individual student's talents in areas not included on the test and does not encourage the development of individual student's strengths. Artistically talented students cannot make the best of their talents since the bulk of their day is spent studying topics on the entrance examination. A parent wishing to develop their child's special talent finds this difficult to achieve in the Korean education system.

Due to the above-mentioned reasons, many parents consider sending their children overseas to study – as many as 40 percent of parents of elementary and secondary school students indicate they have considered the option. Such an option has become increasingly viable because of many factors, including:

• Increased disposable income,
• Increased willingness to pay for higher level of education,
• Increased number of one-child families, which means families can focus attention and finances on one child,
• Increased desire to better develop their child's abilities beyond preparing for the college entrance examination,
• Increased overseas travel has exposed many parents to different educational opportunities and cultures outside of Korea,
• Increased receptivity to foreigners and foreign ideas, and
• Increased number of acquaintances residing overseas.

For parents whose children remain in Korea for secondary school, private education expenses average over USD 800 per month. These courses typically include foreign languages (English especially), mathematics, and athletics. If parents are already committing this money for their children to study in Korea, sending them abroad to study is oftentimes only incrementally more expensive.

With the financial means and frequent overseas travel and visits, ordinary Koreans consider overseas study as an option for their children in primary and secondary school. Parents are concerned that their children will be behind the competition if they do not have any overseas experience. Young students who have studied overseas are increasing. The trend among elementary school students is to utilize summer and winter breaks for language training or to participate in an exchange program in an English-speaking country. Most primary school students in exchange programs go overseas in the third or fourth grade and return to Korea for middle school.

The rationale for most high school students to study overseas is to enter a higher education institution abroad (i.e., a high school student would study in the U.S. if s/he is interested in attending college or university in the U.S.). In general, high school students are looking for overseas experience and develop a plan which includes overseas study as part of the long-term strategy.

Market data

Number of Students Studying Overseas, by school level
Academic Year 2006 (March 2006 -Feburary 2007)

Year	Elementary School	Middle School	High School	Total
2002	3,464	3,301	3,367	10,132
2003	4,052	3,647	4,602	16,448
2004	6,276	5,568	4,602	16,446
2005	8,148	6,670	5,582	20,400
2006	13,814	9,246	6,451	29,511

Source: Korea Education Development Institute (KEDI), 2007

Number of Primary & Secondary Students Studying Overseas, by City/Province
Academic Year 2006 (March 2006 -Feburary 2007)

Year	Seoul	Kyunggi	Pusan	Incheon	Daejon	Daegu	Others	Total
2002	4,505	2,721	444	437	319	317	1,389	10,132
2003	4,403	2,647	541	378	470	284	1,748	10,498
2004	6,089	4,485	725	825	611	493	2,818	16,446
2005	7,091	6,961	985	813	776	814	2,960	20,400
2006	10,890	10,052	1,193	1,221	945	953	4,257	29,511

Source: Korea Education Development Institute (KEDI), 2007

The total number of primary and secondary students in Korea in 2006 was 7,281,862. The total number of these students studying abroad represents only about 0.4 percent of all students, but the growth rates over the past few years have been impressive. The Korea Education Development Institute (KEDI) conducted a market survey of parents sending children overseas to study. The survey’s results revealed some key trends in the overseas study market, including:

• the average duration of overseas study is three years and three months
• information on overseas study is obtained mainly from acquaintances, parents living in the same neighborhood, education consulting agents and hagwons (private education institutes), relatives, and direct experience by parents

Sources of Information on Overseas Study

Source	Rate
Friends	16.3%
Relatives	13.1%
Other parents living in same neighborhood	14.9%
Education consulting agent or hagwon	13.8%
Mass media (newspaper or magazine)	6.9%
Direct experience by parents	13.1%
Others	21.8%

Source: Korea Education Development Institute (KEDI), 2007

• foreign language skill attainment is the top reason to send children overseas for study, with a desire to raise a "global citizen" as the next important.

Reasons for Sending Children Abroad to Study

Reason	Ratio
Foreign language attainment	28.4%
Raising a global citizen	24.7%
Excessive competition-oriented education in Koreaand focus on college entrance exam	10.7%
Inappropriate education system in Korea for individual student's ability and talent	8.4%
Excessive private education expenses	4.9%
Authoritative and un-democratic school culture	4.7%
To go to a U.S. higher education institution	4.2%
Instability of Korea's future	2.5%
Lack of humanities and practical education	1.9%
Preference for international degrees	1.6%
Adaptation problem of students	0.5%
Others	7.5%

• 49.2 percent of parents sending their children overseas spend annually USD 10,000 to USD 20,000, 23.1 percent spend USD 20,000 to USD 30,000, 13.8 percent spend USD 40,000 to USD 50,000, and 10.8 percent of parents spend USD 30,000 to USD 40,000. The average annual investment to study abroad is approximately USD 24,000, including all living expense and educational fees.
• students attend both public and private schools while overseas. 56.9 percent of students studied in public schools and 41.8 percent of students studied at private schools.

Best Prospects

The market demand for exchange programs for primary and secondary school students and short-term English camps is exploding as Korea requires high English language proficiency. The best time to conduct such programs and camps is during the two main vacation periods at school: summer break is from late June to late July, and winter break lasts from late December to the middle of February.

Key Suppliers

The most important factor for parents in choosing a country within which to study is safety, and the second most important factor is the student's ability to adapt to the environment. Canada is preferred on the safety factor, and the U.S. is considered the right destination for those parents most concerned with their child's ability to adapt. Expense becomes a key issue when more than two children from one family study overseas. According to KEDI's survey, expense is not the most important issue parents consider when deciding to send their children overseas for study.
According to the market survey, parents send their children to study in the U.S. (39.9%), followed by Canada (16.0%).

Top Study Destination

Country	Rate	Country	Rate
U.S.	39.9%	Japan	3.3%
Canada	16.0%	Australia	2.3%
New Zealand	8.8%	Germany	2.0%
U.K.	5.6%	Grance	1.6%
South East Asian countries	5.6%	South American countries	1.3%
China	5.2%	Others	8.4%

Prospective Buyers

The typical end users are higher-grade (grades five and six) primary school students and secondary school students who wish to improve English-language capabilities and study in the U.S. It is important to note that marketing should be targeted to the parents of students, since they will be making the final decision and investing the money to finance study abroad.

Market Entry

There are no market barriers preventing U.S. schools from promoting and recruiting students from Korea. A partnership with a local agent is one way to enter the Korean market and is recommended. There are over 500 overseas study-related agencies in Korea, however not every agent is qualified. Before contacting agents, consult with CS Korea. We are able to connect U.S. schools with reputable agents.

As throughout most of Asia, networking plays in important role in promoting U.S. schools to a Korean audience. Utilizing existing alumni connections is an excellent way to secure new students.

Participation in education fairs held in Korea is another way to recruit. Fairs are categorized by the level of the schools (secondary schools, community colleges, four-year colleges, and graduate programs). Almost all the education fairs are held during the spring (March) and fall (September and October). Please see the list below.

The education system in Korea, for pre-school, elementary, and secondary schools, is closed to foreign institutions. However, distance-learning programs for non-degree, life-long education programs, and testing services for the purpose of overseas education, i.e. TOFEL, are open to foreign institutions. For further information, please contact CS Korea.

Market Issues & Obstales

There are persistent misconceptions among Koreas that obtaining a visa to study in the U.S. is a difficult and complicated process. Students and their parents desire knowledge of the visa process. They want to make sure that the energy expended applying to U.S. schools will not have been spent in vain by failing to obtain a visa to the U.S. Students planning to travel and study in the U.S. should be aware of the latest requirement for obtaining a visa. This can be accessed at www.asktheconsul.org.

Trade Events

Korea Student Fair 2008
Date: October 4 – 5, 2008
Venue: COEX, Indian Hall
Website: http://www.yuhak2min.com/eng_yuhak/main.asp

The Association of Boarding Schools (TABS)
Date: October 28, 2008
Venue: COEX InterContinental, Seoul
Website:http://www.schools.com/Asia/2008/index.cfm

Early Study Abroad & English Camp Fair 2008
Date: May 24 – 25, 2008
Venue: COEX, Pacific Hall
Website: http://www.campenglish.net/eng/about/01_03.asp

English Expo & Conference 2008
Date: December 4 – 7, 2008
Venue: COEX Indian Hall
Website:Currently under construction

Resources & Contacts

Ministry of Education, Science, and Technology
Website: www.mest.go.kr

Korea Education Development Institute (KEDI), a government-funded research center for education policy
Website: http://eng.kedi.re.kr/

Fulbright (Korean-American Educational Commission)
Website: http://www.fulbright.or.kr
Tel: 822-3275-4000
Fax: 822-3275-4028
Email: webmaster@N0SPAM.fulbright.or.kr

Korea Overseas Study Association (KOSA)
Website: www.kosaworld.org Tel: 822 533-2301~2
Fax: 822 533-2366
Email: info@N0SPAM.kosaworld.org

For More Information

The U.S. Commercial Service in Korea can be contacted via e-mail at: alex.choi@N0SPAM.mail.doc.gov ; Phone: 822 397-4466; Fax: 822 739-1628; or visit our website: http://buyusa.gov/korea

The U.S. Commercial Service — Your Global Business Partner

With its network of offices across the United States and in more than 80 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://www.export.gov/eac.

Disclaimer: The information provided in this report is intended to be of assistance to U.S. exporters. While we make every effort to ensure its accuracy, neither the United States government nor any of its employees make any representation as to the accuracy or completeness of information in this or any other United States government document. Readers are advised to independently verify any information prior to reliance thereon. The information provided in this report does not constitute legal advice.

International copyright, U.S. Department of Commerce, 2008. All rights reserved outside of the United States.