Seoul: The number of self-employed individuals in South Korea has continued to decrease over the four months leading up to January, primarily due to an ongoing economic slowdown, as revealed by government data on Monday. The statistics indicate a significant reduction in the self-employed workforce, with numbers falling to 5.5 million in January, a drop of 270,000 from the 5.77 million recorded in October.
According to Yonhap News Agency, the decline is attributed to "cooling" consumer sentiment influenced by high inflation and elevated lending rates, which are impacting consumer spending habits. This trend is reflected in the 0.5 percent year-on-year decrease from the 5.53 million self-employed individuals reported in January 2024, as per data from Statistics Korea.
The current statistics reveal the lowest level of self-employment since January 2023, when the figure was 5.49 million, marking a significant shift in the post-COVID-19 economic landscape. The latest data also shows a decrease in self-employment numbers compared to historical economic crises, surpassing figures from the 1997 Asian financial crisis and the 2008 global financial crisis, where numbers stood at 5.9 million in 1997, 5.61 million in 1998, 6 million in 2008, and 5.74 million in 2009.
The report anticipates the release of February's figures on Wednesday, which will further elucidate the ongoing impact of economic conditions on self-employment trends.