Data from the General Statistics Office of Korea shows that the average monthly cost for extra classes per student rose by 44% over four years, increasing from ₩302,000 ($208) to ₩434,000. During the same period, the number of school-age children declined slightly from 51.84 million in 2020 to 51.7 million in 2023, while total spending in the private education sector climbed 40% to reach ₩27 trillion in 2023, the Korea Herald reported.
A survey by the civic group "No Worry About Private Education" found that parents are now spending an average of over $735 per month on extra classes, a sum that can account for up to one-third of the average family income. Park Saing-In, an economist at Seoul National University, attributed this trend to intensified competition in the academic field, particularly related to the university entrance examination.
In response to growing demand, cram schools, locally known as "hagwon", are shifting their focus toward offering high-quality, high-intensity programs rather than merely increasing enrollment numbers. Digital Daesung, a company that manages boarding cram schools, has raised its fee for full-time students to ₩3.5 million per month, marking a 13.3% increase from 2022. The firm's third-quarter revenue also saw a rise of 1.23%, reaching ₩164.2 billion.
Hiconsy, another cram school operator based in Daechi-dong, a district renowned for its concentration of hagwons, reported revenue of over ₩331 billion in 2023, a fivefold increase compared to five years ago. The company's profit increased from ₩7.2 billion to ₩26 billion during the same period.
Im Seong-ho, CEO of Jongno Hagwon, the country's oldest cram school, noted that some parents are willing to pay more than ₩4 million per month, including meals, for an institution they believe can maximize their children's academic success.
A 2023 study reported by DW identified South Korea as the most expensive country in the world to raise a child until the age of 18, underscoring the financial pressures faced by families in the realm of education.