Investment summary ................................................................................................................................ 3
Three reasons for OVERWEIGHT rating
1-1. Private education market to continue growing..................................................................................... 4
1-2. Educational fervor to continue .............................................................................................................. 6
1-2-1. Transferring wealth to next generation via education............................................................... 8
1-2-2. Importance of meritocracy and parental duty in Korea............................................................. 9
1-2-3. Massive emphasis on university education ............................................................................. 9
1-3. Addition of specialized schools good for private market ................................................................... 10
1-3-1. Private market in Japan rebounded after reform .................................................................... 10
1-3-2. School entrance competition to stiffen at all levels ................................................................. 11
2. Industry landscape
2-1. Comparisons between age groups .................................................................................................... 12
2-2. Home tutoring: Growth to slow more steeply..................................................................................... 13
2-3. Cram schools: Consolidation likely..................................................................................................... 15
2-4. Premium English institutes.................................................................................................................. 17
2-5. Adult education: To benefit from aging society.................................................................................. 19
3. Risk factors
3-1. Regulatory risks limited ....................................................................................................................... 20
3-2. Student exodus overseas to be limited .............................................................................................. 22
4. Appendices
Megastudy (072870).................................................................................................................................. 25
Woongjin Thinkbig (095720) ...................................................................................................................... 34
Chungdahm Learning (096240)................................................................................................................. 42
Daekyo (019680) ....................................................................................................................................... 49