"Megastudy Education Reunites with 'Star Instructor' Hyun Woo-jin... 'Expectations for Growth Potential'"

Megastudy Education Announces Completion of Contract Renewal with Hyun Woo-jin

[Asia Economy Reporter Lee Seon-ae] As Megastudy Education, the No.1 online education company, successfully renewed its contract with star instructor Hyun Woo-jin, individual investors are focusing on the stock price trend and growth potential.

According to the Korea Exchange on the 5th, Megastudy Education surged from 73,500 KRW at the opening to 77,500 KRW during the session the previous day. The news of the imminent contract renewal, released before the market opened, influenced the sharp rise in stock price. Megastudy Education closed at 75,500 KRW, up 5.30% (3,800 KRW) from the previous trading day. The rebound was driven by expectations that the contract renewal would be completed and disclosed within October. After the market closed, around 6:30 PM, Megastudy Education announced that it had signed a contract renewal with Mr. Hyun. Through the disclosure, Megastudy Education stated, "We have signed a renewal contract for the exclusive contract of our affiliated instructor Hyun Woo-jin, whose contract was about to expire," adding, "This is a matter that could have a significant impact on our financial statements, hence the disclosure."

The stock price of Megastudy Education is influenced by uncertainties related to instructors. Especially since Mr. Hyun holds an overwhelming share, individual investors show great interest. Mr. Hyun, a CSAT (College Scholastic Ability Test) math instructor, joined Megastudy in 2014 and is credited with establishing Megastudy as the undisputed industry leader. He is a "star instructor" boasting an overwhelming enrollment rate in math courses across all internet lecture brands. According to a survey conducted by public opinion research agency Korea Research and Megastudy Education targeting paid internet lecture users (survey period March 8 to April 8, total 2,033 respondents), 73.5% of 2023 examinees taking math courses mainly attended Mr. Hyun’s lectures. This is six times higher than the second-ranked instructor. His annual salary exceeds 20 billion KRW, and it is known that over one million copies of textbooks he personally produced are sold each year.

In June, when Mr. Hyun hinted at retirement, Megastudy Education’s stock price plummeted. On June 10, Megastudy Education’s stock closed at 90,700 KRW, down 7.35% from the previous day. During the session on June 10, it even dropped by about 9%. This was due to his retirement hint during a live broadcast, suggesting a low possibility of contract renewal. The stock price decline was interpreted as a forecast that if Mr. Hyun retired, the number of Megastudy students would decrease, worsening the company’s performance.

The market expects a rebound in Megastudy Education as uncertainties have been resolved with the contract renewal. NH Investment & Securities analyst Jung Ji-yoon said, "Uncertainties related to the instructor have been largely reflected in the stock price," adding, "There is no change in the elementary and secondary business model, which is improving its profit contribution, and considering price competitiveness, it is time to weigh the growth potential." However, the target price was lowered from the previous 130,000 KRW to 110,000 KRW, taking into account the overall stock price de-rating (a phenomenon where price-earnings ratios decline) in consumer-related sectors.

This content was produced with the assistance of AI translation services.