A student takes online classes in Daegu. / Courtesy of the Daegu Metropolitan Office of Education

By Kim Hyun-bin

Shares of online education companies have been heading upward since the government recommended private learning academies to go online to help prevent the spread of COVID-19, according to stock market analysts Monday.

Stock prices of online education-related stocks such as MegaMD, NE Neungyule, and YBM Net have shown an upward trend. MegaMD closed at 3,515 won up 8.82 percent, YBM Net at 4,955 won up 3.66 percent and NE Neungyule closed at 6,450 won up 8.59 percent at market close, Monday.

The rise in stock prices of online education-related stocks seems to have been influenced by the news that the government is actively recommending distance learning in the wake of the COVID-19 resurgence.

On July 27, the Ministry of Education announced the "Measures for Quarantine Control of Schools and Hagwons during Vacation," which strongly recommends that private academies switch to online classes to prevent the spread of COVID-19 during the vacation period.

As the summer vacations of elementary, middle and high schools start this week and the vacation season begins, concerns about COVID-19 spreading have been intensifying.

Experts say that the government's plan to lower the elementary school age by one year from the current age 6 to age 5 last week also had an impact. However, it is unclear whether the plan will pass in the National Assembly as there is strong opposition from parents and the revision of the Elementary and Secondary Education Act is needed to reform the school system.

Online education-related stocks with the highest market capitalization also rose slightly on the same day.