The number of self-employed people increased by 1.84M in 5 years, but average annual income decreased every year = Korean coverage

In South Korea, the number of self-employed people has increased by about 1.84 million over the past five years, but the average income has been declining every year. In particular, the average income of small self-employed people has decreased by 55%, but the income of some wealthy self-employed people has increased, and the gap between rich and poor has worsened.

Democratic Party Rep. Yang Kyung-sook, a member of the National Assembly's Planning and Finance Committee, analyzed data received from the National Tax Service on the 6th and found that the number of self-employed people in 2021 was 6.568 million.

The number of self-employed people in South Korea is 4,726,000 in 2017, 5,022,000 in 2018, 5,309,000 in 2019, and 5,517,000 in 2020. 2,000 more people. Especially in 2021 during the pandemic of the COVID-19 virus, the number of people increased by 1,051,000 in one year, recording an increase of 19.1%. This is eight times the rate of increase in working income earners (2.4%) over the same period.

The number of self-employed people has increased every year, but their earnings are decreasing year by year. The average annual income of the self-employed was 21.7 million won in 2017, 21.36 million won in 2018, 21.15 million won in 2019, and 2049 in 2020. 10,000 won, declining every year, but in 2021, when the number of self-employed people increased the most, it fell to 19.52 million won.

Annual median income also increased from 8.3 million won in 2017 to 8.17 million won in 2018, 7.98 million won in 2019, and 7.55 million won in 2020. That is decreasing year by year to 6.59 million won in 2021. Especially in 2021, when the strategy to expand social distancing measures in the Tokyo metropolitan area was upgraded to Level 4, the year-on-year rate of change in median income was minus 12.6%, and the first case of the COVID-19 virus in Japan occurred in 2020. Compared to that time (minus 5.4%), it showed a sharp decrease.

In particular, the decline in the income of small self-employed people is conspicuous. The average annual income of the self-employed in the bottom 20% of incomes plummeted by 55% from 1,869,000 won (US$2,000) in 2017 to 841,000 won (US$9,000) in 2021. Compared to the average annual income of the self-employed, the top 20% of income earners, decreased by 5.6% from 77,449,000 won (approximately 8,320,000 yen) to 73,088,000 won during the same period. Big difference.

The average annual income of the top 0.1% of self-employed people will increase from 1,622,895,000 won in 2017 to 1,765,921,000 won in 2021. On the contrary, it increased by 8.8%. The income of the top 1% also increased by 5.0% from 485,466,000 won to 597,750,000 won.

Rep. Yang said, "The total amount of loans for self-employed people is approaching 1,000 trillion won, and the delinquency rate is rising. We should prepare a variety of support measures, including extensions, debt consolidation policies, and reductions or exemptions from electricity charges."