The Korean Education, Training and Skills Sector Prepared by the British Chamber of Commerce in Korea

Korea Market Overview Total population: 50.22 million GDP: $1.435 trillion (11th in the World) Literacy rate: 97.9% (1st in the World) #1 on Bloomberg’s Global Innovation Index 2015 Number 7th largest UK trade partner Internet speed: 25.3 Mbps (1st in the World) Internet penetration: 84.8% (1st in the World) Mobile Penetration: 83% (4th in the World) Digital literacy: 568  points (1st in the World) Sources: OECD PISA Survey, 2011

The Korean Education Market – Overview Limited effects of slow economic growth on the education industry due to ‘education fever.’ Has the highest education costs borne by households and one of the lowest government spending rates in the sector. Has the highest tertiary attainment (68%) and upper secondary education rate (98%) among 25-34 year olds among OECD countries. Has the highest rate of college attendance (70%) among OECD countries. 82.5% of 4 year olds in Korea are enrolled in early childhood education, 79% of whom attend private institutions. Education Expenditure   South Korea OECD Average Annual expenditure/ student by educational institutions for all services ‎£5,848 £6,619 Public expenditure on education as a % of GDP 5.0% 5.6% Relative proportions of public expenditure on education 62.8% 83.9% Relative proportions of private expenditure on education 37.2% 16.1% OECD (2015), Education at a Glance 2015: OECD Indicators

South Korea Expenditure on Private Education Debt payments and educational fees are the largest and fastest-growing expenditures for South Korean middle-income households. In 2015 parents spent a total of £11 billion on private education. In 2015, 68.8% of students from those in primary to tertiary education participated in private education. An average household with two children, spends more than 10% of their monthly income on private education.

Higher Education Study Abroad South Korea’s study abroad expenditure (2015): £1.7 billion Number of Korean students studying abroad (2015): 372,111 UK is the 4th most popular destination for English Higher Education. Study abroad expenditure growth has risen 367% from 2000 to 2011. This means there is a potential target market for UK firms entering the Korean market in English education sector. Korean educational statistics service 2014

Domestic Market Trends HE institutes seeking to internationalise through educational partnerships – Erasmus + programme with the EU Increasing cultural exchange programmes with China and Japan Increased research cooperation with Europe particularly in areas of energy, industrial technologies and information technology Building alliances and relationships Reduction of the number of universities- closing those below standard Further development of the VET system to improve matches between educational and actual skills required in industry Government educational reform Government promoting ‘smart learning’ through use of digital contents. Aiming to developing digital textbook for elementary to tertiary schools Private education for early childhood and elementary students (age 4 – 13) Shifting focus to new areas

Educational companies/entities present in the market

Market Opportunities English Education Service English kindergartens becoming increasingly popular (e.g. Orbital Education’s BIK, Rise Global Korea, PSA, LCI Kids Club) Providing digital/e-Learning contents – LG Electronics’ Kids Pad 2 – possible content collaboration. Woongjin Publishing – seeking digital content for kids (e.g. Story beam, Touch Globe) Summer school programmes and foundation courses in UK HE institutions 2. Higher Education Institution Deregulation drive to bring more foreign branch campuses to the Incheon Free Economic Zone Government offering subsidies to attract foreign academics - measure to prevent student drain E.g. SUNY, George Mason University, University of Utah, Ghent University, University of Aberdeen (Hadong) Universities interested in offering programmes in specific industries (e.g. engineering, energy)

An Example of Market Entry of a UK Education Company L Group is a UK-based, world-leading global language-training provider with licensed partners in over 60 markets. It offers an English learning system which includes nine level courses for all level learners from absolute beginners to corporate executives. It has been successfully present in the market, and the BCCK helped L Group find a partner in line with its new corporate vision in Korea.

Thank you for your time. Minjae Lee | Project Assistant BCCK | 15th Fl, Kyobo Bldg, Jongno-1, Jongno-gu, Seoul, Korea E-mail) Minjae.lee@bcck.or.kr Tel) +82 (0)2-2010-8968 | Mobile) +82 (0)10-4428-4328 | www.bcck.or.kr