Notably, millennials and Gen Z accounted for 43.6% of this revenue, totaling 9.73 billion won. (Image courtesy of Pixabay/CCL)
SEOUL, Oct. 15 (Korea Bizwire) – Revenue from shared accommodation in South Korea has increased more than tenfold over the past three years, with nearly half of the total income generated by individuals in their 20s and 30s, according to a recent analysis of National Tax Service data.
Representative Cha Gyu-geun of the Rebuilding Korea Party revealed that shared accommodation revenue reached 22.3 billion won in 2022, a dramatic increase from 2.1 billion won in 2021. Notably, millennials and Gen Z accounted for 43.6% of this revenue, totaling 9.73 billion won.
The surge in participation by younger generations is attributed to the low initial capital requirements, making it an attractive side hustle for young professionals. Among the 20-30 age group, 22 individuals reported earnings exceeding 100 million won from shared accommodation businesses.
Following the younger demographic, those in their 40s generated the second-highest revenue at 5.51 billion won, with individuals in their 50s and 60s and above earning 3.26 billion won and 3.86 billion won, respectively.
However, the rapid growth of the shared accommodation market has also highlighted concerns about tax evasion. Representative Jung Tae-ho of the Democratic Party of Korea cited National Tax Service data showing that out of 141 businesses inspected in 2022-2023, 95 (67.4%) were found to have either underreported or failed to report their earnings from overseas shared accommodation platforms.
The National Tax Service has subsequently collected 1.4 billion won in additional taxes from these businesses. Jung pointed out the challenge in tracking revenue from foreign online platforms due to the lack of legal grounds for data submission requirements.
Cha emphasized the need for better coordination between local governments and tax authorities. “While local governments conduct annual crackdowns on illegal accommodation businesses, this information is not regularly shared with tax authorities,” he stated. “The National Tax Service should collect this enforcement data periodically from local governments to address tax blind spots.”
Lina Jang (linajang@koreabizwire.com)
