Business Survival in South Korea’s Service Sector Falls Sharply After Three Years, Government Reports (Yonhap)
SEOUL, April 29 (Korea Bizwire) — Only about half of businesses in 100 key service sectors closely tied to people’s daily lives — such as hair salons and grocery stores — survive after their first three years, government data showed Tuesday.
According to data compiled by the National Tax Service (NTS), the three-year survival rate for businesses launched in 2020 stood at 53.8 percent as of 2023. The figure represents the proportion of businesses still in operation three years after their establishment.
Meanwhile, the one-year survival rate for businesses came to 77.9 percent in 2023, slightly down from a steady upward trend observed from 2019 to 2022, the data showed.
The five-year survival rate was even lower at 39.6 percent, indicating that only about 4 in 10 businesses remain operational five years after opening.
Hair salons posted the highest three-year survival rate of 73.4 percent, followed closely by pensions and guesthouses at 73.1 percent, the NTS said.
In contrast, the lowest three-year survival rates were recorded in online retail at 45.7 percent and fast-food restaurants, such as fried chicken and pizza establishments, at 46.8 percent.
(Yonhap)
