Korean Cram Schools Caught Inflating Fees Through Time Padding and Hidden Costs

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By Kim Yeo-jin
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null - Seoul Economic Daily Finance News from South Korea

Korean cram schools have been caught circumventing tuition fee caps by padding class hours and inflating miscellaneous costs, prompting the government to treat the issue as a consumer price concern and introduce stronger penalties.

The Ministry of Education announced strengthened measures to manage cram school tuition fees at a ministerial task force meeting on consumer price management held at the Government Complex Seoul on Wednesday.

Inspections of 15,925 cram schools and tutoring centers nationwide from January through April 3 this year uncovered 2,394 cases of illegal private education practices, resulting in 3,212 administrative actions. Of these, 596 cases involved tuition fee violations.

The inspections targeted cram schools in the top 10% for tuition fees and those with high fee increases over the past five years. Investigators focused on methods used to circumvent tuition fee caps.

A common tactic involved adding self-study time to teaching hours, then raising fees based on the extended schedule. Schools were also found overcharging for mock exams, textbooks, meals, and transportation to effectively raise overall costs.

Online monitoring identified an additional 351 suspected violations, including 174 cases of unregistered fee changes, 22 cases of improper study and textbook fee collection, and 27 cases of advertising that encouraged advanced learning beyond grade level.

Fees Doubled, Classes Past 11 p.m.

Inspectors found numerous cases significantly exceeding regulations.

null - Seoul Economic Daily Finance News from South Korea
null - Seoul Economic Daily Finance News from South Korea

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.