hankyoreh

By Lee Jae-myong, Staff Writer　
　　　　
The number of self-employed workers, which previously declined amid intense competition, is once again on the rise. In particular, the number self-employed workers over the age of 50 has set a new record, surpassing 3 million.
According to reports by National Statistical Office (NSO), the number of self-employed workers has declined each year since 2006. The percentage of those who are self-employed among all workers has been reduced from 35% to 23%.
Since last August, however, the number has been steadily increasing in comparison to last year. There has been a significant increase in self-employed workers over the age of 50, as South Korea’s baby boomer generation (born in 1955-63) nears retirement. While the total number of self-employed workers stands at 5.73 million, a 540 thousand decrease from ten years ago, the number in those over the age of 50 has increased by 685 thousand over the same period.
LG Economic Research Institute researcher Lee Ji-sun said, “As Korean baby boomers have experienced difficulties in reemployment close to their retirement period, they are moving into small businesses that have lower entry barriers.”
The rise has resulted in a deteriorating impact on the profitability of self-employment as a result of over-competition and a declining profit structure.
A recently published household financial study has shed light on the reality of self-employment, which it says has a “fancy exterior and poor interior.” Self-employed households spent an average of 10.8 million won ($9,525) repaying principal loans and interest. A total of 74.2% of them had more than 100 million won in debt. In addition, the report also showed declining financial soundness. The ratio of financial debt to disposable income stood at 160%, a 14.1% point increase over the last year.
Ban Jung-ho, senior researcher at Korea Labor Research Institute stated, “It is partially because retirees entered the small business market without enough preparation and partially because large and specialized corporations entered the small business market that self employment has lost competativeness.”
(Translated by Kim Joon-ki, Intern)
　
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