One interesting aspect of these numbers is that they show an increase at the same time that the won exchange rate against the U.S. dollar weakened considerably.  However, the data also reflect the summer vacation months and therefore may show an increase in the number of Koreans coming to the U.S. for intensive English or other special programs during the summer of 2008.

The survey also questioned why parents wanted to send their children overseas.  A majority responded that they wanted their children to have an international sense of living, but 27.3 percent said they did not like the Korean education system; 16.6 percent wanted their children to learn in a liberal atmosphere; and 13.1 percent wanted them to learn a foreign language easily.

The Cabinet approved a ministry plan Tuesday to remove the seed money rule, which has drawn complaints from foreign institutions seeking to enter the Korean market, in a bid to attract more foreign schools. “Foreign institutions don’t have to secure the seed money if they plan branches in free economic zones and on Jeju Island,” a ministry official said. “The removal is in line with the government’s efforts to attract more foreign schools. We plan to offer more benefits to them.”

“We’ve issued a stern warning to the school,’’ said O Nam-bum, an official of the Seoul Metropolitan Office of Education (SMOE). “The warning means that if the school accepts unqualified students again, it will face a suspension of operations.’’ Koreans are ineligible to attend the school unless they have lived overseas for more than five years.

There are some 50 foreign schools operating in Korea with about 10,000 enrolled students. Among them, Seoul has 20 and the city plans to build three more by 2012.

Web English is one of the fastest growing segments in South Korea’s private English education industry, which is estimated at 15 trillion won ($13 billion) a year — almost half of the country’s annual education budget. About 150 to 200 companies are in the market offering phone and Web English tutoring.  KT Corp, South Korea’s dominant fixed-line and broadband operator, provides a service called “Hello ET” cooperating with a South Korean English education company. Internet portal SK Communications runs “Spicus” which includes a job interview drill on a video-chat platform. Applicants hand out their completed English resume before the drill. An interviewer stages a simulation interview through webcam, looking through resumes, and later provides feedback on logical speaking and communication skills.  In terms of cost, a three-times-a-week Web English course can be covered for about 100,000 won a month. ($1=1151.0 Won)

A number of global private equity funds have invested in the private education market over the last few years. Their investment is expected to hone its competitiveness but concerns are growing that public education at schools might be left behind. The investments show that private education is not about small private cram schools or “hagwon” under careless management anymore ― it has grown into a huge industry. 

The Carlyle Group, for example, invested $20 million in Topia Academy, a private institute specializing in English education; TStone invested 60 billion won in Time Holdings, a cram school; Elim Edu, an essay school, got a $13 million investment from Goldman Sachs; and AIG Investment put $60 million into Avalon, an English language institute.

President Lee Myung-bak administration’s focus on English education is also expected to bolster the private education market.