Competition for “EDU Tech” in the education industry to catch the alpha generation (born after 2010) is intensifying. As Alpha Generation is skilled in advanced IT technologies such as artificial intelligence (AI), augmented reality (AR), and metaverse, companies are also busy developing technologies for customized education, away from learning methods using simple digital devices.
Edutech, the joy and sorrow of the industry…Competition. “Chi Yeol”
According to the Korea EduTech Industry Association on the 14th, the domestic EduTech market is estimated to be worth 7.325 trillion won as of last year. In particular, EduTech began to show growth as demand for non-face-to-face and digital education increased due to restrictions on school classes after COVID-19. In the future, the market is expected to grow 8.5 percent every year to reach 9.9833 trillion won by 2025.
Education companies are also working hard to strengthen EduTech’s capabilities. This is because EduTech is considered a breakthrough to overcome the crisis amid a decrease in the school-age population due to low birth rates. In particular, as Alpha Generation grows surrounded by digital devices from birth, the common opinion of the industry is that educational companies should have an edutech environment that meets their eye level.
The second quarter of the education industry’s performance is also “happy and sad.”The pace of improvement in constitution has changed
Some in the industry say that EduTech’s capabilities are already acting as a variable that determines performance. While the overall offline education business was sluggish due to COVID-19, Woongjin Thinkbig’s performance, which invested in EduTech early, grew steeply. Woongjin Thinkbig surpassed Daekyo to become the second-largest in the industry in 2020, with sales of 813.9 billion won and operating profit of 26.8 billion won last year, up 26 percent and 91.4 percent, respectively.
Woongjin Thinkbig announced a digital transformation in 2014 and established an IT development office in 2016. Since then, it has accumulated more than 10 million cumulative members and an average of more than 100 million data per day. In 2019, the EduTech Research Institute was established to expand R&D investment.
Based on this, ‘Woongjin Smart All’, an AI learning platform for all subjects, was introduced in November 2019 and attracted 220,000 members in about two years. In April last year, Metabus was introduced to SmartAll, increasing the learning completion rate by 17%. ARpedia, which applied AR technology, received an innovation award at CES, the world’s largest IT and electronic exhibition, for the first time in the education industry.
Its competitors, Teachers and Daekyo, are also busy trying to become edutech companies. Teachers invested 50 billion won from 2019 to introduce “I Can Do,” a digital study paper that combines metaverse and live-action AI tutor, in October last year. It is characterized by collecting learners’ expressions, voices, and learning behaviors and guiding learning by level through data analysis.
Daekyo strengthened its investment in EduTech by recruiting Kim Woo-seung, former CEO of Zoom Internet, as its chief digital officer (CDO) early last year. Since then, it has launched “Macadamia All-in-One,” an AI learning program for all subjects, through Definition, a joint venture established with Megazone Cloud in October last year. However, due to the late digital transition, it has been struggling with an operating loss for the past two consecutive years.