According to data released by Statistics Korea on Thursday, the number of self-employed workers averaged 5.67 million between January and November 2024, a 24,000 decline from the previous year. This marks a reversal of the two-year growth trend that followed the COVID-19 pandemic.
The decline is attributed to a broader economic downturn. In 2024, nearly 910,000 small businesses closed their doors, a 9.5 percent decrease.
The restaurant industry, a significant sector for small businesses, was particularly hard-hit. Seoul city data revealed a 4.2 percent closure rate in the second quarter of 2024, up from 2.7 percent in 2022.
The financial strain on self-employed workers has also intensified. Default rates reached a record high of 0.66 percent at the end of 2023, nearly double the previous year's figure. The lodgings and culinary sector was especially affected, with a delinquency rate of 0.72 percent.
To address the growing financial burden, Financial Services Commission Chairman Kim Byeong-hwan announced plans to unveil measures this month to ease the situation for small business owners in consultation with the banking sector.
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