Low-Income Business Income Earners Up, Daily Workers Down...Suspected 'Trick' to Evade 4 Major Insurances
[Asia Economy Reporter Kwangho Lee] In recent years, the number of low-income business income earners has rapidly increased, while the number of daily workers has decreased. There are claims that an investigation is needed to determine whether this is a 'trick' by employers to evade the mandatory four major social insurances.
On the 28th, according to business income withholding tax report data received by Yang Kyung-sook, a member of the National Assembly's Planning and Finance Committee from the Democratic Party of Korea, from the National Tax Service, the number of business income earners without business registration increased by 2.1 million, or 53.0%, from 4 million in 2014 to 6.13 million in 2018.
Among them, low-income business income earners with annual business income of 20 million KRW or less increased by 1.7 million, from 3.39 million to 5.1 million, accounting for 81% of the total increase in business income earners.
Also, looking at changes by type of business income earner, those classified as other self-employed, whose fields are unclear, surged from 1.02 million to 2.65 million during this period.
While low-income business income earners without business registration rapidly increased, the number of daily workers decreased from 7.44 million to 6.77 million. The number of daily workers had steadily increased from 2011 to 2014 prior to this.
By industry, business income earners in wholesale and retail trade and food and accommodation industries increased from 1.57 million to 2.24 million, while the number of daily workers in the same industries decreased from 3.17 million to 2.93 million.
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Rep. Yang said, "The continuous increase in low-income business income earners and special-type workers who are effectively employees but are not protected as workers is suspected to be a trick to disguise workers as business income earners to evade obligations such as minimum wage and the four major social insurances," urging the government to investigate.
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