One in Ten Workers Employed, Platform Workers with 'Average Wage 1.92 Million Won'... Protection Law Passage Uncertain

Ministry of Employment and Employment Information Service Update Number of Workers After One Year

2.2 Million Workers in Broad Sense on Job Search Platform
660,000 in Narrow Sense Including Delivery Worker Assignments

Market Expanded but Issues Like Proof of Worker Status Remain
Uncertain Law Passage This Year... Slow Progress on 4 Major Social Insurance Coverage

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Moon Chaeseok] One in ten workers was found to be a platform worker. The number of workers in this sector grew by about 400,000 (23%) in one year. However, the likelihood of legislation being passed this year to protect their basic rights as workers and ensure access to social security systems such as health, employment, industrial accident insurance, and national pension remains low. The monthly income earned by those who consider platform work their "main job" was 1,923,000 KRW, which is only slightly above next year’s minimum wage of 1,914,000 KRW.

According to a survey conducted by the Ministry of Employment and Labor and the Korea Employment Information Service from August to September on 51,000 people aged 15 to 69, the broad category of platform workers?those who find jobs through platforms that introduce job openings and job seekers?numbered 2.2 million, accounting for 8.5% of all employed persons. The narrower category of platform workers?those who provide labor through platforms that influence job assignments, such as delivery drivers?was about 660,000. According to the previous record cited by the Presidential Committee on Jobs at the end of last year, from the Korea Labor Institute, the broad category was 1.79 million and the narrow category about 220,000. Although the previous survey targeted employed persons aged 15 to 64 and this one targeted those aged 15 to 69, making direct comparison difficult, it is clear that the broad category has increased by about 410,000.

Notably, the proportion of women and youth?groups considered relatively vulnerable in employment?is high. Women accounted for 46.5% of platform workers, 3.7 percentage points higher than their 42.8% share among all employed persons. Youth in their 20s and 30s made up 55.2%, which is 20.5 percentage points higher than their 34.7% share among all employed persons. By occupation, delivery, shipping, and driving accounted for 29.9% of the total. The Ministry of Employment and Labor explained this as an effect of increased non-face-to-face consumption due to COVID-19. Food preparation, hospitality, and sales (23.7%), as well as professional services such as translation and interpretation (9.9%), followed. Among men, delivery, shipping, and driving workers?commonly called "riders"?made up 47.5%, overwhelmingly the largest share, while among women, food preparation, hospitality, and sales workers were the largest group at 33.1%.

Platform work held significant "meaning" for these workers. Among the 660,000 narrow category workers, 47.2% considered this their "main job." The Ministry defined "main job" workers as those who earn more than 50% of their income from platform work or work more than 20 hours per week. Those who earned 25-50% of their income or worked 10-20 hours per week on platform work were classified as "side job" workers, accounting for 39.5%. It is also notable that 82% of main job workers and 69% of side job workers were engaged in delivery, shipping, and driving. The monthly income earned from platform work as a main job was 1,923,000 KRW, similar to next year’s minimum wage of 1,914,440 KRW. Only 29.1% of these workers were covered by employment insurance, and just 30.1% benefited from industrial accident insurance.

Few had transparent contracts. Among the 660,000 narrow category workers, 57.7% reported having a proper contract with the platform company, while 28.5% said they had no contract at all. Even among those with contracts, 47.2% said that when contract terms changed, the platform unilaterally decided and notified them. The proportion who said their opinions were not even sought was as high as 39.7%. Moreover, 59% said there were no work regulations set by the platform company, which was more than those who said regulations existed. Among those who said regulations existed, 83% reported temporary app suspensions or job assignment restrictions for violations, and 59% said it could lead to contract termination. The lack of regulations is serious, but even when regulations exist, it often means the company can abruptly terminate contracts.

Choi Hyun-seok, Director of Labor Standards Policy at the Ministry of Employment and Labor, clarified that "the reason platform companies do not sign contracts with workers or have a low rate of consultation when changing contracts is due to insufficient legal regulation." He emphasized, "Platform companies need to adopt a partnership approach by fulfilling their obligations to conclude transparent and fair contracts, listen to workers’ opinions when changing contract terms, and actively resolve workers’ difficulties. We will actively support legislative discussions in the National Assembly to achieve this."

Despite this government message, protection laws remain pending in the National Assembly due to several contentious issues, including how to view the "worker status" of platform workers. Recognizing them as workers rather than self-employed would guarantee rights under the Labor Standards Act, such as the four major insurances and minimum wage, but this is not easy. Relatedly, on the 3rd, Minister of Employment and Labor Ahn Kyung-duk held a meeting with CEOs of 11 major platform companies and urged, "The Platform Worker Protection Act (Act on the Protection and Support of Platform Workers) must pass the National Assembly within this year," asking companies to pay close attention so that platform workers can enroll in employment and industrial accident insurance and receive appropriate vocational training going forward.

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