Megastudy, the first company to commercialize online courses in South Korea's private education sector, has announced its complete withdrawal from the civil service exam prep market.
Megastudy Education revealed that, following the approval process of its board of directors, it has signed a definitive contract, including a business transfer agreement, for its civil service division, "Mega Civil Service."
The civil service division will be transferred to Next Study on the 31st of this month.
The transfer price is 11.4 billion won (approximately 1.2 billion yen).
This decision was made due to the civil service division's cumulative operating deficit, which exceeded 60 billion won (approximately 6.4 billion yen) over the past four years, making it difficult to normalize operations.
The declining popularity of civil service jobs and a reduction in recruitment numbers have made it impossible to continue the business.
In fact, the competition rate for the Grade 9 civil servant open recruitment exam has dropped from 53:1 in 2016 to 21:1 this year.
According to a survey by the Ministry of Personnel Management, the reasons for the decline in the popularity of civil service jobs include low wages and stress caused by excessive complaints from the public.
A Megastudy official stated, "Out of all our business divisions, the civil service division is the only one recording an operating loss," and explained, "We decided to transfer the business to improve profitability and reorganize our business structure."
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