More on the planned tuition disclosure agenda that the government is planning to roll out. A source within the Daegu Foreign Language Hagwon Association says that a lot of schools are worrying and the Association, in addition to hagwon associations throughout the country, are feverishly
bribing lobbying the federal government to relax on this critical issue.
What’s at stake is a big tightening of hagwon revenue and tightening profit margins. The government is setting a maximun tuition cap of 70,000won/mnth per student. And under the proposed law, when private institutes advertise, they will also need to include their tuition fees in the ad. In the event that they are later revealed to be over-charging more than their advertised rate, they will see heavy fines and repeat offenders will have their education license revoked and will not be allowed to re-apply for any such kind of license in the future. So given that not very many foreign language hagwons in the country are charging 70,000won or less per student (save for, maybe, the odd GnB with 1 foreign teacher, etc..), a lot of hagwons are freaking out. They are currently lobbying to increase the maximum tuition fee, but that’s still not going to be enough for all the ones that are charging rates of 200-300,000/mnth per student or even the 500,000-1,000,000/mnth rates that many Gangnam outfits are billing. Stay tuned.