EdTech Giant Survives Post-Pandemic Decline in Online Courses
Ranked No.1 Among South Korean EdTech Companies
2024.05.20 – The EdTech industry, which provides educational programs online, faced a significant decline after the COVID-19 pandemic as demand for remote learning decreased. However, Day1Company, a startup specializing in professional adult education, achieved a remarkable feat last year, generating revenue of 116.6 billion KRW, surpassing 100 billion KRW in sales for the second consecutive year, and successfully turning a profit. In an interview at the company’s headquarters in Gangnam, Seoul, CEO Kangmin Lee (42) emphasized, “In education, it’s not about the method but about the content. The better someone is at their job, the stronger their desire to learn more efficient and innovative ways to work, and such people are always present, regardless of the time.”
Day1Company provides practical education content aimed at adults, covering a broad spectrum from AI and programming to video editing, foreign languages, and job preparation. The main target audience is office workers who aspire to become high performers, often referred to as “work smart” professionals. The company operates under four separate CICs (Company-In-Company) models: FastCampus (professional education), Coloso (education for freelancers and small business owners), Lemonade (foreign language education), and Snowball (job preparation education). The major driver of last year’s demand was the AI boom. “In the past, video editing and marketing courses were the most popular, but now AI is the new gold rush,” said Lee. “Just as jeans were sold next to the gold mines in the old American West, we sell educational programs in the new AI industry.” Haedong Shin (37), CEO of FastCampus, which specializes in professional education, added, “Seven or eight out of our top 10 courses are AI-related, and we are always seeking out early adopters who are using new technologies in their work as instructors.”
Lee’s inspiration for starting an education-focused company stemmed from his own experiences. A graduate of POSTECH’s Mechanical Engineering program, Lee faced multiple failed ventures before founding Day1Company. In 2013, after a failed job search platform, he was feeling discouraged when a friend suggested he teach practical courses on accounting for aspiring entrepreneurs. Surprisingly, the majority of attendees were not aspiring entrepreneurs but employees from large corporations. They were there not to learn about starting a business but to gain practical skills needed for their jobs. Lee recalled, “Ten years ago, there were very few places offering structured training on using new technologies at work. Seeing the passion of people who valued their careers gave me the courage to try again.”
Day1Company’s next target is the global market, tailoring its production system for developing specialized courses to suit various countries. With operations now in the U.S., Japan, and Indonesia, the company generated 13.6 billion KRW in overseas sales last year. They are also expanding their B2B services, providing Day1Company’s educational programs for corporate employee training. Last year, B2B sales reached 35.3 billion KRW, representing over 60% growth from the previous year. “We’re seeing more employees request our courses directly to their companies,” said Lee. “We plan to revolutionize corporate training by integrating expert course design into the process.”
