40s Falling Behind in the Job Market... Turning to Entrepreneurship

Last Year, 13,655 Startups by People in Their 40s Supported by the Government

One Third of the Total... Increased by 23% Compared to the Previous Year

[Asia Economy Reporters Minyoung Kim, Sehee Jang] #Kim (49), who worked at Hyundai Heavy Industries for 22 years before retiring, registered at the Ulsan Dong-gu Startup Center in December 2016 upon retirement. He then re-entered employment in 2017, and in early 2018, he repeatedly returned to the startup center, eventually succeeding in re-employment last year. Kim said, "I prepared for a startup based on my experience in the shipbuilding industry and having filed three related patents, but I chose the path of re-employment due to limitations in funding and networks," adding, "Only a very small number succeed in startups, and the failure rate is over 90%."

People in their 40s, known as the "backbone of our economy," are being pushed into startups as they are displaced from the job market due to the downturn in the manufacturing industry. According to the Korea Institute of Startup & Entrepreneurship Development on the 8th, out of a total of 39,554 startups supported by the government last year, 13,655 were founded by people in their 40s, an increase of 2,541 (23%) from 2018 (11,114). The rise in startups by people in their 40s has also led to a corresponding increase in demand for startup support.

According to last year's startup company statistics, the age distribution of founders was led by those in their 50s (33.5%) and 40s (32.9%), making up more than half, followed by those aged 60 and above (17.9%), 30s (14.3%), and 20s and below (1.4%). This means that people in their 40s and 50s account for 66% of all startups.

The reason people in their 40s, who are at the prime age for working, are driven to startups despite the high risk of failure is that the manufacturing job market continues to suffer due to industrial restructuring in sectors like shipbuilding and automobiles, and stable re-employment is difficult to achieve. The number of employed people in their 40s has been declining year-on-year for 49 consecutive months since November 2015. This contrasts with the overall employment figures, which have increased by more than 300,000 for four consecutive months since August last year, and the employment rate for those aged 15-64 reached a record high of 67.1%.

As employment stagnation among people in their 40s continued, President Moon Jae-in ordered a "special measure for people in their 40s" last year. In response, the government launched a task force (TF) for 40s employment, co-led by the Vice Ministers of the Ministry of Strategy and Finance and the Ministry of Employment and Labor. The TF plans to announce a 40s employment policy, focusing on startups, vocational training, and living expense support, by March.

This content was produced with the assistance of AI translation services.