Students Expected to Spend $5.4 Bil. Overseas in 2007

By Yoon Ja-young
Staff Reporter

Koreans are spending billions of dollars to educate their kids overseas and their expenditure is snowballing every year, while incoming foreign students and travelers are showing no signs of any marked growth.

Koreans are expected to spend nearly 5 trillion won ($5.4 billion) on overseas education this year. This is more than 13 percent of the government's 36 trillion won education budget for next year.

Since the 1997 Asian financial crisis, they have spent over $20 billion studying abroad or taking language training courses overseas.

According to the Bank of Korea (BOK), spending on overseas education and training recorded $3.5 billion in the first eight months of this year, marking a 17.3 percent year-on-year growth. If spending continues to increase at this pace, it would surpass 4.8 trillion won this year, the central bank said.

Backed up by Koreans' enthusiastic interest in education and the obsession that one should speak English to get a decent job, overseas education spending is soaring each year _ the central bank estimated spending will reach $6 billion in 2008.

While Koreans are heading overseas to study and get language training, local schools don't seem to be a very attractive option for foreign students.

The BOK said Koreans spent $590 million overseas to cover expenses in studying and training in August alone, whereas foreign students here spent only $7.2 million.

The burden of educational expenses is huge here. According to a number of studies, the private education market is estimated to be 33.5 trillion won in size, which exceeds the 31 trillion won education budget for 2007.

The high cost involves sacrifices made by parents. According to a PCA Life survey, 43 percent of Koreans are willing to spend more on children's education instead of preparing for their post-retirement life.

Incoming foreign travelers spent just $1,193 per person last year, down from $1,264 in 2005 _ as the country recorded an $8.5 billion deficit in its travel account.

chizpizza@koreatimes.co.kr

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