The number of self-employed individuals over the age of 60 in South Korea has surpassed the two million mark. (Image courtesy of Yonhap)
SEJONG, Feb. 16 (Korea Bizwire) – For the first time, the number of self-employed individuals over the age of 60 in South Korea has surpassed the two million mark.
This significant milestone, primarily attributed to a sharp increase in seniors entering the transportation sector, including personal taxi and delivery services, reflects a broader trend of older individuals seeking new ventures in their later years.
According to the latest data from a Statistics Korea survey on economic activities, the count of self-employed seniors climbed to 2.07 million last year, marking an increase of 75,000 from the previous year’s total of 1.99 million. This is the inaugural occasion the senior self-employed population has breached the two million threshold.
This demographic shift is not just about numbers; it also underscores a changing landscape in the workforce. Seniors are joining the self-employment bandwagon at a faster clip than other age groups, now making up 36.4% of all self-employed individuals, up from 35.5% the year before. The age distribution among self-employed individuals places those over 60 at the top, followed by those in their 50s, 40s, 30s, and 20s, in that order.
An interesting facet of this development is that a vast majority of these senior entrepreneurs, approximately 84.8% or 1.75 million, are operating without any employees, highlighting a trend towards solo ventures among the older population. Only 315,000 seniors over the age of 60 have been identified as employing others, ranking third after those in their 50s and 40s.
The increase in senior entrepreneurs is part of a broader aging trend within the self-employed community, with their proportion rising from 28.4% in 2018 to 36.4% in the last year. The transportation and warehousing sector, in particular, has seen a rapid influx of older workers, growing by about 110,000 from 195,000 in 2018 to 305,800 last year, surpassing retail as one of the top industries for senior self-employment.
Experts believe that retirees are gravitating towards jobs with lower barriers to entry, such as driving taxis, freight trucks, and running delivery services. Government analysis corroborates this, showing an uptick in the proportion of individuals over 50 working in the transportation sector.
Additionally, the expansion of care services, including senior-to-senior care, has contributed to the growth in the number of older individuals starting their businesses in the health and social welfare sectors.
M. H. Lee (mhlee@koreabizwire.com)
