South Korea’s Self-Employment Dilemma

1. What’s Happening
   South Korea has a very high share of self-employed workers compared to other developed countries. Many people run small restaurants, cafés, convenience stores, or service businesses with thin profit margins. Rising rents, labor costs, and weak consumer spending make it hard for these businesses to survive. As competition increases, closures and frequent turnover are becoming common.

2. What It Means
   A fragile self-employment sector signals limited stable job opportunities in the broader economy. When many people turn to self-employment out of necessity rather than choice, income becomes unstable and household stress rises. This weakens consumer spending and increases financial vulnerability, especially during economic slowdowns.

3. Watch Points

• Changes in consumer spending and foot traffic

• Government support or restructuring policies for small businesses

• Shifts from self-employment to wage jobs or platform-based work

Source
Arirang Insight. (2025). Structural challenges in South Korea’s self-employment sector. Internal analysis based on economic and labor trends.