Increase in Businesses Such as Restaurants, Transportation, and Real Estate Last Year... Rise in Startups by Retired People in Their 60s

Statistics Korea Announces Provisional Results of the 2019 National Business Survey on the 29th

[Asia Economy Reporter Jang Sehee] It has been revealed that the number of businesses increased by 72,000 last year as retirees aged 60 and above opened coffee shops, bakeries, and general restaurants, which have relatively low entry barriers.

According to the "2019 National Business Survey Preliminary Results" announced by Statistics Korea on the 29th, the total number of businesses nationwide was 4,175,000, and the number of employees was 22,717,000, increasing by 1.8% (720,000 businesses) and 2.2% (480,000 employees) respectively compared to the previous year.

Compared to 10 years ago in 2009, the number of businesses increased by 26.8% (880,000 businesses), and the number of employees increased by 35.1% (5.89 million employees). This trend has been continuously expanding over the past decade.

By industry, accommodation and food service activities (2.5%), transportation (2.2%), and real estate (5.3%) increased, while mining decreased by 7.3%.

Industries with an increase in the number of employees compared to the previous year were health and social welfare (6.8%), accommodation and food service activities (2.5%), and professional, scientific, and technical activities (5.2%), whereas mining decreased by 0.7%. In particular, in health and social welfare, home welfare service providers increased significantly, and in accommodation and food service activities, coffee specialty shops and Korean general restaurants saw growth.

The age group of business owners was highest in their 50s at 34.6%, but the growth rate of the number of businesses was notable among those aged 60 and above at 3.7% compared to the previous year.

This is analyzed to be because retirees, dreaming of a second career, flocked to start businesses such as coffee specialty shops and bakeries, which have relatively low entry barriers.

Additionally, the proportion of female business owners increased by 2.0%. Industries where female business owners increased compared to the previous year included accommodation and food service activities (1.3%), associations and other services (3.0%), and education services (3.5%).

Meanwhile, the regions where the number of employees increased compared to the previous year were Gyeonggi (2.5%), Chungnam (4.9%), Jeonnam (5.5%), Gyeongnam (2.8%), and Gyeongbuk (2.9%) in order.

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