"Post-Corona Era... Self-Employed Must Actively Adopt Untact"

Seoul Hwanghak-dong Kitchen Street. / Photo by Honam Moon munonam@

[Asia Economy Reporter Moon Hyewon] Experts have expressed the opinion that in order for self-employed businesses to survive in the post-COVID-19 era, they must actively adopt untact (contactless) services and undergo structural improvements.

In the report titled "Prospects for Changes in the Self-Employment Ecosystem and Response Strategies in the Post-COVID-19 Era," released on the 14th by the Small and Medium Business Research Institute, Research Fellow Jeong Eun-ae stated, "The new normal of the post-COVID-19 era is restructuring the industrial framework," emphasizing this point.

Research Fellow Jeong analyzed, "The decline in commercial rent due to the expansion of online services induces self-employment startups and overheated competition," adding, "As a result, self-employment sales will decrease."

She pointed out that self-employed businesses need to create an untact environment by establishing delivery applications and online grocery shopping services, standardizing commission systems, and institutionalizing rider licensing systems to coexist with competing online shopping malls.

Furthermore, she advised that to coexist with franchises and large general retail stores, a fair trade environment both online and offline should be established, and shared services linking different industries should be expanded.

Research Fellow Jeong analyzed, "With the restructuring of the labor market, including the increase of platform workers, the labor status of non-wage workers will frequently change."

According to the analysis by the Small and Medium Business Research Institute, as the startup rate of self-employed businesses rises, the average sales amount decreases, and the number of non-wage workers increases.

To prepare for this, Research Fellow Jeong said that employment insurance policies such as 'income guarantee insurance' and wage system countermeasures should be established, and innovative startups should be fostered to absorb self-employed individuals into wage employment.

Additionally, to revitalize local commercial districts, institutional measures should be put in place to allow changes in the use and type of commercial spaces according to changes in consumer preferences, and prevention of 'dungji naemollim' (gentrification) through commercial district management is also necessary, she added.

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