Chosun News interview- English translation

Chairman Young Joong Kang, 63, asked whether I know the maximum initial speed of a shuttlecock. “A professional athlete’s smashing goes as fast as 340 kilometers per hour. It’s more powerful than the golf balls that Tiger Woods swings. It is not a sport just for the neighborhood lot,” he laughed. As a badminton fanatic, he often compares the competency of a shuttlecock to business management. Predicting the opponent’s offensive route, detecting the ball’s landing spot accurately, making sure not to miss the perfect time to hit back. More than anything, a player’s body must be light and flexible in order to catch up to the ever-changing movement of a shuttlecock that weighs a mere 5 grams.

Chairman Young Joong Kang of Daekyo Group is like a “legend” in the Korean worksheet education industry. He is the one who opened a study room in Jongam-dong, Seoul to three students in 1975 and transformed it to Korea’s number one education and cultural corporation. Terms such as “one-on-one home visit education” or “Eye Level education,” which are now familiar to people’s ears, were spearheaded by him. In Korea, the scale of the worksheet industry that he founded reaches 4 trillion Won, and the number of students who currently receive home visit education exceeds ten million. Even though the particular market is on the verge of stagnation due to the low birth rate, he is more aggressive than ever. After advancing Daekyo to 16 countries around the world for the past 10 years, he opens a new North America headquarters building in New Jersey this July. It is his attempt to gain strength to grow from the global stage by re-entering the battlefield that is North American market.

“Risk? Business without risk is not business (laugh).”

◇ Global Samsung? Global Daekyo!

- Daekyo already has been around in America since 1991. What is the meaning behind the grand opening of the new North America headquarter in New Jersey in July?

“Unlike the earlier time when Daekyo America was located in LA, we are implementing an entirely different strategy. The previous method of targeting toward the Korean population was a complacent way thinking. We were merely translating Korean Noonnopi worksheets into English, so obviously we couldn't step out of the typical Korean market’s method. In order to let Daekyo be known in America, we needed to target the locals. I thought it was appropriate to target eastern America, where many of the leaders of the society reside.”

- How do you plan to “target”?

“We will enter the American market with global education materials instead of Korean education materials. We are already providing E.nopi Math, E.nopi English, and E.nopi Korean as textbooks or supplementary materials in American elementary and middle schools. We were also chosen as a provider of supplementary materials for SES (Supplementary Educational Service) by the American Department of Education for children who are behind in their classes. We are the only Korean corporation among the providers.”

- So it is not a door-to-door, home visit education system.

“If we operated as door-to-door service in America, we would spend all our cost on the street (laugh). There are 15 to 40 learning centers in each city where children come to learn. There are approximately 100 students in each learning center.
Teachers are all locals, and they get trained at our headquarters in New Jersey.”

- I heard that the new headquarters of Daekyo America is where the Samsung Global Center used to be.

“That building became a stepping-stone for Samsung’s entrance to global market until it became what it is now. I purchased the building in the hopes of receiving Samsung’s afterglow. I thought perhaps a nameless company called Daekyo could grab American society’s attention (laugh).”

- Daekyo has advanced to 16 countries including Hong Kong, China, Australia, England, and Germany.

“Hong Kong and Malaysia have been showing attention-worthy growth. Daekyo Hong Kong has surpassed Kumon in the region and placed 1stplace for growth rate. Each subject costs from 120,000 Won to 180,000 Won. By relying on lessons learned from trial and error in America, we have implemented a very meticulous local marketing strategy, and it has resulted in local students who make 95 % of the total registered students. In Beijing, China, we have launched local subsidiary, but due to complicated law and system, and distinctive Chinese culture, it is still at an experimental stage. But it surely is a market that we can’t give up.”

- Due to the economic crisis in Europe, the whole world is going through a difficult time.

“Business always carries risk. How to overcome those risks is what business management is all about. I believe Daekyo’s success has been possible because of the long period of experience and a solid organization. President Obama didn’t say that the Korean education system should be a global model for nothing. it is not only IT, but also a passion for education and education know-how that make all of Korea’s products highly viable in the global market. What other countries in the world have over 90% college enrollment rates? Of course, there is also an expression such as “social waste” that has surfaced, but it is because of that notion that Korea was able to be one of the top 10 global economic countries.”

◇ Is Private Education Bad?

- It seems like there will be a gust of Korean private education in the global market.

“Let’s go over something for a moment. What exactly are public education and private education? Anything that is not supported by the government is private education. Private colleges, private high schools, private middle schools are all private education. People call something public education if the Department of Education supports it to even the tiniest degree, but that way of defining is not entirely correct.”

“And the idea that public education is placed above private education is a mistake too. Public and private education opportunities do not have a dominant-dependent relationship, but rather a complementary relationship.”

“The strength of Korean education is like that of our mother or father. Back in the days when there used to be 70 to 80 students in a class, it was nearly impossible to develop talents through public education alone. The role of supplementary help was taken on by the mother, father, brother, sister, or uncle. In our modern days, the supplementary education system plays that role. Public education cannot provide individual, interest-focused lessons; therefore, private education complements that area. Even well established public education cannot satisfy parents nor students’ various demands.”

- When the government removed private education and after-school programs from the official education policy, you criticized it by saying, “the government is failing to recognize the change in the customer’s demand.”

“I meant that there is no reason for government to prevent customers from making choices according to their needs. Of course, I don’t agree with expensive private tutoring that may cause social tension among different socio-economic classes. Even private education should not abandon the original principle of equal opportunity. Daekyo’s worksheets cost 30,000 Won each month per subject. Even when taking English, Math, and Korean at the same time, it doesn’t go over 100,000 Won. If we assume that one family’s income is about 2,500,000 to 3,000,000 Won, tuition is about 3% of that income, so I do not think it is overwhelming. When I first opened a study room in 1975, the tuition fee was 5,000 Won and it is 30,000 Won now in 2012. If we chased after money, we wouldn’t have been able to keep such pricing.”

- There surely wouldn’t be any concern if your child gets good grades and gets accepted into a prestigious college simply by doing worksheets…

“Why do you think it is impossible? Worksheets help children to build a habit to study daily. If a child can’t learn to study on his or her own through worksheets, there is a high chance that he/she won’t be successful even with expensive private tutoring.”

- It is not rare that many parents think of worksheets as nuisance; teachers stop by for a short period of time to check the work, student gets annoyed with overdue worksheets, and eventually they become the parent’s homework.

“That would be 100 percent the educator’s fault. If a child cannot feel interested in learning, that is strictly the teacher’s mistake. That is why we strongly emphasize the sense of responsibility and ethics when training our teachers. They thoroughly reflect on their teaching methods if one of their students quits. If one thinks he or she will teach for only 30,000 Won’s worth, then he or she cannot be a Daekyo teacher.”

- What do you think isDaekyo’s secret for maintaining 1st place in supplemental education industry?

“First is research and development. Then, it’s teacher training.”

“Our business policy is strictly student-focused, learner-centered. Other companies are curriculum-focused, teacher-centered, but we provide customized education according to an individual student’s ability. That is the reason that teacher’s ability is important. It seems like other companies are trying to catch up with us these days, but it won’t be that easy to catch up with our 37 years of assets.”

- You are often compared with President Yoon Suk Geum of Woongjin Group.

“He and I are different from the start. He started as a Britannica Encyclopedia sales person and I started as a study room teacher. President Yoon’s organizational management skills and business sense are truly excellent. In education field, however, I think I was able to be placed on the first place because of my origin as an educator.”

◇ World’s First One-on-One Home Visit Education System

“When Jinju, Gyeongnam-born Young Joong Kang was 25 years old, his father’s illness had gotten worse, and he was discharged from the military service after graduating from college. However, due to the first Oil Shock, the employment market was closed. There seemed to be no hope for him who had to be a breadwinner as the oldest of 4 siblings. It was his uncle who introduced him to Japan’s “Kumon Math.” The trend of tutoring was on the rise after the 1968 implementation of the college entrance exam policy caused a stir in Korean education industry. Kang’s experience teaching “Kumon Math” that was translated into Korean to three students in Jongam-dong, Seoul would lead to the start of Daekyo. “Of course, it didn’t go well. My mother even told me to look for another job since I’m not skilled in business. But I became rather eager. I felt desire to fight with this opponent called destiny that requested to duel with me.”

- In your autobiography, “Life is Learning,” it is written that you had difficult time during Jong-Am class days.

“I made posters with watercolor to advertise, and I put them up on a streetlight and at a hair salon that many mothers went to, but it rained the very next day. I felt like the watercolor paint that was running down was like my tears. “

- Were you a kind of teacher who would pinpoint the important materials?

“Tutoring during that time meant that a teacher teaches the whole subjects everyday for two to three hours. It was a typical curriculum-centered education. We were different. We let students have fun while studying, and they would gain confidence by solving easy problems first; they were not bound by their grade levels or curriculum. Study time was less than 30 minutes, so it was efficient as well. Our method of teaching them how to catch the fish (rather than catching the fish for them) must have gone through.”

- You studied Agriculture at Konkuk University. You didn’t even major in education.

“I simply started this business to make a living. Once I have accepted education as my job, I was able to understand the essence of this occupation and eventually my conviction and experience accumulated to form a philosophy. I did notdid not have a goal of bringing national prosperity and global peace from the very beginning.”

- I heard the most fearful moment of your life was when the government banned private education in July 1980.”

“Kongmun Math was just starting to make its name, and it went down the drain over night. What kind of country bans studying? 4,200 members that have accumulated over four-and-a-half years decreased to 400 after the bill. I thought about literally everything and anything. I even thought about continuing the program in secret without being caught, through sound system or something.”

Your worst fear actually became a stepping-stone for success.

“I still find it strange that it took me as much as three months to come up with one-on-one home visit education system. We simply had to go to students if they couldn’t come to us! We brought the study materials to the children, made them solve problems on the spot, and brought them back, so it wasn’t considered as tutoring. We created study schedules so that the parents and children could see the study levels. In my opinion, one-on-one home visit lessons really are a very effective way of teaching. The program is customized according to children’s psychological state and individual environments, so this kind of education system is not something that has existed anywhere else in the world.”

◇ The Secret of the Birth of “Eye Level Education”

“The popularity of the one-on-one home visit education approach that Daekyo started was a big hit. Home visit education’s popularity shot through the roof as the illegality of private tutoring surfaced as a social issue. In 1989, over 80 worksheet companies were created, and the market scale also grew to 300 billion. But there was another crisis: Japan’s Kumon, which was the mother of Kongmun Math had requested to change the names of the brand and company to Kumon. There was also a request of a tremendous amount of royalty. After much deliberation, Chairman Kang finally made an important decision.”

- You announced to break away from Kumon in 1990.

“I gave up the name “Kongmun Math” that had maintained its first place in the particular industry for 15 years since its launching, and I decided to create an original brand. Re-creating a brand is a dangerous adventure that can result in a complete loss, but in the midst of the ever-changing education industry, I made a decision to foster a brand that is competent in the global market.”

- Wasn’t Daekyo able to grow because of Kumon, though?

“I think Daekyo repaid everything that it had owed. There isn’t any country in the world that has more Kumon students than Korea. Even Kumon’s Japanese market is smaller than the Korean market. I paved that path. As a home visit education system, Kumon was able to grow at a fast speed not just in Japan, but in Korea as well.”

- Is that how the name “Eye Level Education” was born?

“Employees suggested different ideas, and I made the decision. Many preferred “Daekyo Math” and “New (Shin) Math”, but I chose “Eye Level (Noonnopi) Math”. Employees strongly protested, saying that the parents demand something much higher than “at eye level” (laugh). I solidified my decision after seeing a draft of an advertisement including a story of “the teacher who lowered his height” at the Smithsonian Museum. I didn’t want to lie to the parents that their children’s grades will skyrocket if students study with our materials.”

- I’m surprised that you have such an education philosophy even when you didn’t major in education.

“Didn’t I say that accumulated experience forms philosophy? And, even though I was a non-traditional student, I earned my Master’s degree in education. I studied at Yonsei University Graduate School of Education.”

- In 1996, you announced to aim to be in top 50 corporations by 2010. Then, the IMF economic crisis broke out.

“I lacked much knowledge in economy. I launched Daekyo Broadcast in ’93, Expedia World in ’95, Daekyo Logistic and even Daekyo Computers afterward. I followed the typical mentality of Korean industry that tends to expand by creating different branches once the business seems to be successful. I over-estimated “the legend of Eye Level (Noonnopi).” In that sense, I can’t call myself a professional businessman.”

- You took a step back in 2001 for 5 years after taking responsibility for the failure.

“I deserved to be criticized and take responsibility as an owner of a corporation. I left headquarters and started my life in a small rented office in Yeoksam-dong. I, however, humbly and genuinely asked Professor Song Ja who had been a president of Yonsei University and a secretary of the Department of Education to be a CEO. He had the best sense of business management out of all the past university presidents in the history.”

◇ Kyo-Hak-Sang-Jang, Be willing to “lose” your face.

- Daekyo is known to as a “clean” company that hasn’t evaded taxes or arranged slush fund.

“My friends joke that I’m alive only because I have two nostrils; if I had only one, I would’ve been dead. I strictly follow principles and manage my business according to specific methods, to the point where I appear stubborn and inflexible. Of course, there were many temptations that could have led me to make money easily, but it was my principle to be truthful and avoid conflicts with rival companies, especially because my business is education business targeted toward children.”

- What are some examples of these “temptations”?

“There were many people who wanted to make money by gaining the business license of our study materials. We could have made tons of money with no work just by giving out the business license and taking money. The reason I abandoned such an easy path and chose to struggle with students and teachers instead t is that I thought that the easy way was against the principles of an education corporation. I didn’t want to do something with no passion.”

- It is said that someone who is successful easily falls into conceit and haughtiness.

“That is very true. That is why I often think that I can make mistakes. I sought to study whenever I could because I was aware of my insufficiency. I studied labor, culture, environment, and even justice through my participation in 12 special programs in graduate school. Not only graduate school but also our life itself is a giant textbook. “Kyo-Hak-Sang-Jang” (敎學相長).It means to grow together through teaching and learning. Just because one is an owner, if one only thinks about his or her power and authority, it would be easy to fall into boastfulness. Experience and opinions of someone other than oneself are absolutely necessary. I enjoy watching dramas often these days to the point where my wife starts nagging me about it. I enjoy these because I must understand the psychology of the populace in order to follow the current trend. One cannot create something original and special without understanding the market trends.”

- I heard your mother contributed greatly to you becoming “a badminton fanatic”. You are currently the president of World Badminton Federation.

“After my father passed away, my mother was very lonely since we had no relative in Seoul. I created a court in an empty lot in front of our house and played badminton with her. She made friends in the neighborhood and became healthier due to this. She still plays badminton even now as she is looking toward her 90s. Some say I am a devoted son, but my real devotion is badminton. (laugh)”

- I’ve read in your book that you watched a badminton game with Bill Gates during 2008 Beijing Olympics.

“I realized that a successful person has excellent concentration while I watched Bill Gates. Throughout the whole match, he never once took his eyes off of the athletes ? even when his wife Melinda talked to him. He is a warm and unpretentious person.”

- Due to low birth rate, growth of the worksheet business has been getting weaker. Is there a solution?

“I plan to break out of the stereotype that worksheets are only for children or teenagers. As we have now entered the era when people live well until 100 years old, life-long learning has become a trend. One must continue to learn after resignation, in order to live just as long as one has lived. Education is an indispensable domain in our life. There is even a heightened interest in learning about death. In that sense, the market has not been narrowed. It has become Blue Ocean, rather.”

- You’ve experienced a low employment rate during your 20s due to Oil Shock. You must have a lot to tell the current youth in their 20s.

“You must discard the traditional, Confucians mentality that there exists a caste system of scholars, farmers, artisans, and tradesmen. Chances will come only when you get out of the idealistic thinking of not wanting to get dirt under your finger nails and simply twirling a pen while sitting. First, reflect on your life, and identify what skills you have that others don’t, then prepare yourself with one key that will allow you to enter the market aggressively. You will only lower your self-esteem by looking at how well other people do. Be willing to “lose face.”