[Opinion] The COVID-19 Pandemic and the Role of Women Entrepreneurs

Jeong Yunsuk, President of the Korea Women Entrepreneurs Association

The economic impact of the COVID-19 pandemic has been relatively greater on women. Although the pandemic has affected everyone worldwide, women have been losing their jobs at a faster rate than men.

Women also bear a heavier burden than men when it comes to unpaid childcare and housework. Additionally, many women work in face-to-face, contact-intensive service sectors such as accommodation, food services, and retail, which have been severely affected by COVID-19. Statistics make this clearer. According to the 2020 Organization for Economic Cooperation and Development (OECD) data, the female unemployment rate increased from 5.7% to 7.4%.

Before the COVID-19 outbreak, women spent an average of 6 more hours per week on childcare than men. During the pandemic, women have been spending 7.7 more hours per week on childcare compared to men.

Research has consistently shown that women's economic activity contributes to economic growth. Women's economic empowerment is essential for sustainable economic growth. This means that increasing women's economic participation contributes to achieving gender equality and gaining economic benefits. The OECD report analyzes that if the female labor force grows to the same level as the male labor force by 2030, the total labor force could increase by 10%.

Gender equality starts with providing equal opportunities without discrimination based on an individual's gender. The concept of gender equality originated from the women's rights movement and has evolved into a human rights movement that transcends gender.

According to the Gender Gap Index included in the World Economic Forum report, South Korea ranked 108th out of 153 countries in terms of gender equality as of 2019. Overall, the situation is dismal, and it looks even bleaker when examined in detail. South Korea ranked joint first in the "health and life expectancy" category and improved significantly to 79th in the political empowerment category compared to the past. However, it ranked 101st in educational attainment and 127th in economic empowerment and participation.

The proportion of female CEOs among listed companies in South Korea was 3.6% as of 2019. Although this number has increased significantly compared to the past, it remains low compared to major advanced countries. The proportion of female executives is on the rise, reaching 4.5%, but it is still low relative to women's participation in economic activities. In the United States, as of January this year, the proportion of female CEOs in S&P 500 companies is about 6.0%.

The government plans to invest an additional 400 billion KRW in this year's supplementary budget to create 77,000 women’s jobs. It will provide 57,000 public jobs in sectors such as care, digital, and quarantine, and support companies hiring women who have experienced career interruptions with up to 6 million KRW per person to create 18,000 jobs. Along with institutional and attitudinal changes, these efforts must continue for gradual change to be possible.

Christine Lagarde, the first female Managing Director of the International Monetary Fund (IMF), emphasized the role of women in the economy by stating, "When women do better, the economy does better." More women active in business are needed to lead change. In this regard, Korean women entrepreneurs have ample reason to feel a sense of mission and pride.

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