Korea - Education ServicesKorea - Education Services

ITA CODE: SV EDS         

Overview

Sources: Bank of Korea, Ministry of Education, Science & Technology, and Statistics Korea.
Note: Total Market Size = Total Local Production + Total Imports – Total Exports. Total Local Production=Total educational expenditures by Korean families.  Total Exports=Total educational expenditures of foreign students in Korea. Total Imports =Total educational expenditures of Korean students studying abroad. Imports from U.S = Total educational expenditure of Korean students studying in the U.S. Unit: USD millions.
South Korea represents the third largest source of foreign students matriculating at U.S. universities, comprising five percent of total international students in the U.S. The Open Doors of Institute of International Education (IIE) indicates that a total of 54,600 Korean students were enrolled in U.S. institutions for academic year 2018-2019. On a per capita basis, Korea sends the second-most students to the U.S. from Asia. The fields of study of Korean students in the U.S. have now become more diversified (and promoted by the Ministry of Education). Currently 25 percent of Korean students are seeking STEM majors, while 16 percent are studying business management, 12 percent are studying fine and applied arts, and 12 percent are studying social studies.
A degree from a well-known institution is a status symbol in Korea and essential to finding the “right job at the right company.” Coveted spaces in Korea’s top schools are open to competition from all students, but attainable by only a few. Many talented students instead opt for the best schools outside of the country and obtain a diploma from an accredited overseas school. Although Korean students with U.S. degrees no longer can enjoy the same advantages in the job market as they did a decade ago, English language skills, internship experience, or a degree from a mid-ranked state university in the U.S. is seen as providing a competitive advantage to secure full-time employment. This translates into opportunities for U.S. schools to recruit some of Korea’s most talented students. Koreans remain willing to spend a substantial portion of their income on education.
While this market is very attractive to a wide swath of U.S. educational service providers, it has become, over the last few years, an increasingly tough market. The number of Korean students studying in the U.S. has trended slightly downward in each of the last five years. While the U.S. remains by far one of the most preferred overseas destinations, especially for undergraduate studies, fewer Korean students are going to the U.S. because there are simply fewer younger people.  Korea is a rapidly aging society with one of the world’s lowest birth rates at 0.8 children per family. In addition to this demographic decline, the recent economic difficulties at home are also affecting, to some degree, the declining number of Korean students in the U.S.
Although a university’s reputation is still a key element for Korean students seeking degree programs, recently more Korean students are employing strategies to lower the costs of their education by studying at community colleges before transferring to four-year schools or state universities with less expensive living costs. Korea’s dynamic and constantly evolving education market is best characterized by the speed and power of the referrals and information that flow by word-of-mouth. Good opportunities do exist, albeit with smaller numbers of U.S.-bound Korean students, if and when U.S. educational entities are prepared to compete in a highly sophisticated, demanding, and brand-oriented market.

Sub-Sector Best Prospects

Undergraduate college programs – the perception of U.S. universities of academic research and prestige as well as the chance to be equipped with English proficiency remain a strong draw for Koreans, despite challenges such as the declining Korean population and the growing appeal of China as a study abroad destination.

Opportunities

To attract Korean students and penetrate the dynamic and highly saturated Korean education market, U.S. educational entities should take an approach based on a more permanent, consistent and profound commitment to the market. Korean parents are increasingly savvy about how they acquire information on educational opportunities for their children. Traditional ways of recruiting students such as hosting school information sessions and participating in fairs are not as effective as they were in the past. Agents or representatives are utilized less. Educational entities should consider employing a combination of on-line and off-line promotional campaigns. Building people-to-people networks through alumni advocacy, as well as developing and broadening exchange programs, which could, in turn, raise the profile of the U.S. institution, helps U.S. schools attract Korean students to the United States.

Resources

Trade Shows
Korea Study Abroad & Emigration Fair – www.uhak2min.com/en/
The MBA Tours – www.thembatour.com         
University Fair organized by Linden Tours – www.lindentours.com
Korea Student Fair – www.aief-usa.org

Key Contacts
Ministry of Education – english.moe.go.kr
Fulbright (Korean-American Educational Commission) – www.fulbright.or.kr
Education USA – www.educationusa.info
KOSA (Korea Overseas Studying Agencies) – www.kosaworld.org

Local Contact
Ms. Young Hee Koo
Commercial Specialist
U.S. Commercial Service Korea
U.S. Embassy Seoul
188 Sejong-daero, Jongno-gu
Seoul 03141 Korea
Tel:  82-2-397-4396
younghee.koo@trade.gov
http://www.export.gov/southkorea