SOUTH Korean regional governments have been rushing to build English villages as alternative English learning environments, but the villages are suffering heavy losses and there are concerns that the projects are overlapping, the JoongAng Daily has reported.

English villages require large initial investments but entrance fees are low compared to costs. There were 21 English villages in South Korea as of May and a total of 237.2 billion won ($215 million) was spent to build them. The English villages had combined losses of 21.2 billion ($19 million) won last year, with local governments footing the bill.

At the same time, 23 additional English villages are on the way or being planned and a total of 208 billion ($188 million) won in investment is allotted.

“The degree of satisfaction among visitors is high and the villages help them take an interest in learning and overcome fear of speaking English, but losses are likely to grow if the villages continue to be built,” said Kim Jong-jin, Deputy Director of the Evaluation Bureau in the South Korean prime minister’s office.

The Gyeonggi English Village Paju Camp, which opened in 2006, cost 99 billion won ($90 million) to build. In the first year it was open, 530,000 visitors came to take a look but the number declined to 320,000 last year and the village suffered a loss of 5.7 billion won ($5 million). Another year of loss is expected this year. “We do not intend to criticize English villages but we are worried that financial losses are going to mount,” Kim said.

Moreover, the South Korean Ministry of Education, Science and Technology and the offices of education of local governments are setting up English experience learning centers in schools, raising concerns of potential overlap.