"I Want to Live" Self-Employed People Pushed to the Brink, Is There No Solution?

Two Consecutive Cases of Self-Employed Individuals' 'Extreme Choices' in One Day
About 63% of Self-Employed Struggling with Temporary or Permanent Closure Since Social Distancing Level 4
Experts: "Severe Polarization Within Self-Employed... Economic Support Needed Considering Each Situation"

The store operated by Mr. A (57), who ran a small business in Mapo-gu, Seoul, and took an extreme measure due to financial difficulties. Notes and chrysanthemum flowers commemorating Mr. A are placed there. Photo by So-Young Kim sozero815@asiae.co.kr

[Asia Economy Reporter Kim Seohyun] Amid a series of extreme choices made by self-employed individuals due to business difficulties caused by the spread of COVID-19, calls for government countermeasures are growing louder. Experts advise that economic compensation is the most realistic way to alleviate the financial hardships faced by the self-employed.

On the 12th alone, self-employed individuals in different regions lost their lives by extreme means. In Seoul, Mr. A (57), a self-employed person who had operated a pub for over 20 years, passed away.

Mr. A, who had been running a pub and restaurant since 1999 for 23 years, reportedly saw his sales drop to one-third after the outbreak of COVID-19, with many days earning less than 100,000 KRW. Since the government strengthened business restrictions with the escalation of social distancing measures at the end of last year, customers stopped coming, and he reached a point where he could not pay the 10 million KRW monthly rent or even his employees' salaries.

Text messages demanding debt repayment or asking him to vacate his home were found on Mr. A’s mobile phone discovered beside him. It was reported that before his death, he tried to pay his remaining employees by moving out of the one-room apartment where he lived and borrowed money from acquaintances to cover the shortfall, adding to the tragedy.

In Yeosu, Jeollanam-do, Mr. B, the owner of a chicken restaurant known as a popular spot near City Hall, left a note saying, "I am struggling financially. I am sorry to my parents," before taking his own life.

On the afternoon of the 5th, the signboard of a closed business was placed at a junk shop in Seoul. [Image source=Yonhap News]

Since the spread of COVID-19, the livelihoods of self-employed individuals have been under continuous threat. According to a survey conducted by the Korea Federation of Small and Medium Business from the 25th to 30th of last month targeting 500 small business owners, the average sales of self-employed individuals in Seoul decreased by more than 20% after the fourth phase of social distancing. Approximately 453,000 stores closed due to business difficulties, and about 63% of self-employed individuals were considering temporary or permanent closure.

Among the self-employed, there have been consistent criticisms that the "haphazard quarantine regulations" are the fundamental cause of the problem.

On the 2nd, small and medium business organizations held a press conference urging a reform of the COVID-19 quarantine system. They stated, "Quarantine and the economy are not mutually exclusive, and coexistence with COVID-19 is inevitable," and urged, "The government and the National Assembly should hasten to reform the current quarantine system, which relies solely on the sacrifices of small business owners and the self-employed, to allow normal economic activities by industry and phase."

They further demanded, "Direct operational restrictions should be minimized, and selective easing of quarantine measures should be implemented by distinguishing between high-risk and low-risk facilities. Restrictions on the number of private gatherings for those who have completed vaccination should be lifted, and exceptions should be applied for meetings related to official conferences or those submitting PCR test results when dining."

Experts suggested that economic support for the self-employed is the most effective solution to the problem. Professor Lee Jeonghee of the Department of Economics at Chung-Ang University explained, "The business difficulties caused by the spread of COVID-19 have been ongoing for a long time, so support measures that carefully consider each situation must be prepared. Even among the self-employed, polarization is occurring, with some increasing sales through online markets."

He added, "Along with the existing loss compensation system, differentiated support measures by industry should be prepared. We need to find ways to support industries that were directly hit. We should help self-employed individuals who suffered significant damage to recover and enable industry transitions if they reach extreme situations."

Additionally, Professor Eom Jung-sik of the Department of Infectious Diseases at Gachon University Gil Medical Center pointed out, "Differentiating quarantine systems between high-risk and low-risk facilities could cause additional disputes because it stigmatizes high-risk facilities."

He emphasized, "The business difficulties of the self-employed are primarily economic issues, so it is most realistic to resolve them by allocating sufficient government budgets to compensate for damages."

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