Education institutions & qualification registration

Hagwon Transfer and Change of Founder-Operator Registration — 7-Day Processing and Premium Contract Special Terms

The hagwon Act has no provision on succession to the operator's status, so when you take over a hagwon you file a change of founder-operator registration under Article 6(1), second sentence, of the Act on the Establishment and Operation of Private Teaching Institutes and Extracurricular Lessons and Article 7(1)1 of its Enforcement Decree. The transferee files with the competent local office of education, attaching a contract signed by hand by the transferor and a document proving the right to use the premises, and the processing period is 7 days. A gyoseupso (small private tutoring room) has no form for changing the operator, so first confirm with the local office of education how a change of tutor is handled. The transfer contract should include a termination clause conditioned on acceptance of the change of registration and a settlement standard for prepaid tuition.

Procedure

Procedure type
  • Registration Difficulty Medium

    The authority checks whether the statutory registration requirements, such as facilities, staff and capital, are met before issuing a registration certificate. Registration can be refused if the requirements are not met.

  1. 1. Check disciplinary history and transferee disqualifications

    Registration of a hagwon teaching the same curriculum at the same location may be refused within 1 year of a registration cancellation or during a teaching suspension period (Article 6(6) of the Act). Because a closure report cannot be filed while disposition proceedings are pending (Article 10(4) of the Act), confirm the disciplinary history with the local office of education before signing, and also confirm that the transferee does not fall under the disqualifications in Article 9 of the Act.

  2. 2. Include licensing special terms in the transfer contract

    Specify the items transferred (list of facilities and equipment, business name, phone number, rights to use teaching materials) and the handover date. Write the confirmation deadline and refund deadline as dates for the following clauses: termination and refund of amounts received if the change of operator registration is not accepted for reasons not attributable to the transferee, termination and settlement if the lease is not concluded, and responsibility for dispositions, rent and unpaid amounts arising before the handover date.

  3. 3. Apply for change of founder-operator registration

    Enter both the transferor and the transferee on the Application for Change of Registration of Hagwon Founder-Operator (Enforcement Rule Form No. 10), attach the contract signed by hand by the transferor and a document proving the right to use the premises, and submit it to the superintendent of the local office of education (Article 6(5) of the Enforcement Rule). The processing period is 7 days and there is no fee; once accepted, the registration certificate is reissued with the changes and must be posted at the hagwon. If tuition and fees, the instructor list or the curriculum also change, file a separate change of registration using the Application for Change of Hagwon Registration (Form No. 8).

  4. 4. Confirm the procedure for taking over a gyoseupso

    In a gyoseupso, one tutor teaches only one subject at one location in person and may not employ instructors (Article 14(7) of the Act, Article 15(2) of the Enforcement Decree). The gyoseupso change report form (Form No. 19) names the existing tutor as the reporter and has no transferor or transferee fields, so confirm with the local office of education whether a change of tutor is accepted as a change report or handled by the existing tutor's closure report (Form No. 20) and the new tutor's establishment and operation report (Form No. 16). The office must notify whether a report or change report is accepted within 8 days of receipt (Article 14(2) of the Act).

  5. 5. Settle prepaid tuition and inform students

    List each student's prepaid tuition, outstanding amounts and expected refunds as of the handover date, and write the settlement standard in the contract. If the hagwon becomes unable to teach, the amount calculated on a daily basis under Annex 4 of the Enforcement Decree must be refunded within 5 days of the date the refund ground arises (Article 18(2) and (3) of the Enforcement Decree), so separate students who will continue from those who will be refunded and inform them before the handover.

Required documents

  • Application for Change of Registration of Hagwon Founder-Operator (Enforcement Rule of the Act on the Establishment and Operation of Private Teaching Institutes and Extracurricular Lessons, Form No. 10)
  • Transfer contract signed by hand by the transferor or other document proving the transferor's intent (for inheritance, a document proving heirship)
  • Document proving the right to use the teaching premises (where the hagwon property belongs to another person, such as a lease contract)
  • Transferee's resident registration abstract or corporate registration certificate (if not consenting to shared administrative information use)
  • Application for Change of Hagwon Registration (Form No. 8, where tuition and fees, the instructor list or the curriculum also change)
  • Gyoseupso suspension/closure report (Form No. 20) and gyoseupso establishment and operation report (Form No. 16) (when taking over a gyoseupso and the office of education advises a new report)
  • Documents proving the tutor's qualifications and floor plan of the gyoseupso (for a new gyoseupso report)
  • Settlement statement of each student's prepaid tuition and expected refund as of the handover date

Fees

Administrative service fee
  • from KRW 700,000
All administrative service fees exclude 10% VAT.

The forms state that there is no fee for the Application for Change of Registration of Hagwon Founder-Operator, the Application for Change of Hagwon Registration, the gyoseupso establishment and operation report and change report, or the hagwon and gyoseupso suspension and closure reports. Our office fee starts from the amount shown above and may vary depending on whether it is a hagwon or a gyoseupso, whether a change of tuition registration is filed at the same time, and the scope of the contract special terms; we will give you an exact quote after reviewing your documents.

Legal basis and review date

  • Act on the Establishment and Operation of Private Teaching Institutes and Extracurricular Lessons, Article 6
  • Act on the Establishment and Operation of Private Teaching Institutes and Extracurricular Lessons, Article 9
  • Act on the Establishment and Operation of Private Teaching Institutes and Extracurricular Lessons, Article 10
  • Act on the Establishment and Operation of Private Teaching Institutes and Extracurricular Lessons, Article 14
  • Act on the Establishment and Operation of Private Teaching Institutes and Extracurricular Lessons, Article 17
  • Enforcement Decree of the Act on the Establishment and Operation of Private Teaching Institutes and Extracurricular Lessons, Article 7
  • Enforcement Decree of the Act on the Establishment and Operation of Private Teaching Institutes and Extracurricular Lessons, Article 18 and Annex 4
  • Enforcement Rule of the Act on the Establishment and Operation of Private Teaching Institutes and Extracurricular Lessons, Article 6 and Form No. 10

Checked against the statutes on

Statutes and public notices change, so each case needs to be checked individually. Statute titles are given in English for reference. The Korean statutes are the authoritative text.

Check these first

  • Operating the hagwon in the transferee's name before the change of registration is accepted counts as making a change without change of registration and may be grounds for a teaching suspension or registration cancellation (Article 17(1)6 of the Act).
  • Matters set by city or provincial ordinances and education rules, such as how tuition is posted and facility standards, differ by region, so they must be confirmed with the competent office of education.

Frequently asked questions

Do I file a succession report when taking over a hagwon?
No. The hagwon Act has no provision on succession to the operator's status, and a change of operator is subject to change of founder-operator registration under Article 6(1), second sentence, of the Act and Article 7(1)1 of the Enforcement Decree. The transferee enters both the transferor and the transferee on Form No. 10 and applies to the office of education.
Does the previous director have to file a closure report first when I take over a hagwon?
If you proceed with a change of operator registration, it is handled with one change application and no closure report. If you choose closure followed by new registration, the transferee must meet the facility and equipment standards and obtain new registration under Article 6(1) of the Act. A closure report cannot be filed at all while disposition proceedings are pending (Article 10(4) of the Act).
Can a gyoseupso be transferred?
This must be confirmed with the competent office of education. A gyoseupso is subject to reporting where the tutor personally teaches one subject, and unlike a hagwon there is no form for changing the operator, so whether a change of tutor is accepted as a change report or handled by a closure report followed by a new report follows the office's guidance. Within 1 year of a gyoseupso closure order or during a teaching suspension period, reporting the same type of gyoseupso is restricted (Article 14(10) of the Act).
Can students get a refund of tuition already paid when the director changes?
Yes, if the hagwon becomes unable to continue teaching. Under Article 18(2) of the Enforcement Decree and Annex 4, the amount paid minus the daily-calculated amount for the days taught must be refunded within 5 days of the date the refund ground arises. If only the operator changes and teaching continues, who bears the prepaid tuition is set by the settlement clause in the transfer contract.
Can I take over a hagwon that has received an administrative disposition?
It depends on the disposition and its timing. Within 1 year of a registration cancellation or during a teaching suspension period, registration of a hagwon teaching the same curriculum at the same location may be refused (Article 6(6) of the Act). Check the disciplinary history before signing, and state responsibility for dispositions arising from violations before the handover date in the contract special terms.
Can I entrust the hagwon transfer procedure to an administrative agent?
Yes. We prepare the Application for Change of Registration of Hagwon Founder-Operator, the change of tuition registration application and gyoseupso closure and report documents, and submit them to the office of education on your behalf. We also draft the special terms for the transfer contract covering termination if the change of registration is not accepted, tuition settlement and responsibility for administrative dispositions.

Contact us

Hwang Yunsang Administrative Office in Songdo, Incheon prepares and submits administrative documents and explains the procedure. If your situation is similar, send us a message.

📍 2697, 26F POSCO Tower-Songdo, 165 Convensia-daero, Yeonsu-gu, Incheon, Republic of Korea · 📞 010-3374-2687 · 🌐 hwangadmin.com

This guide is general information based on public sources. Requirements, documents and deadlines differ by case and by the competent agency, so please confirm them before you proceed.