韩国央行-不断增长的老年人雇主人口_原因和政策回应（英）-2025.6_28页_1mb

Summary of BOK Issue Note: The Growing Elderly Self-Employed Population

Core Content

This document explores the increasing trend of elderly self-employment in South Korea, focusing on the causes, implications, and policy responses to this demographic shift. The second baby boomer generation, born between 1964 and 1974 (totaling 9.54 million), is expected to significantly increase the number of self-employed individuals aged 60 and over, with projections indicating a rise from 1.42 million in 2015 to 2.48 million by 2032. This trend is attributed to the lack of regular wage employment opportunities for retirees and the desire for continued economic activity.

Main Points

1. Elderly Self-Employment Trend

• The self-employment rate in South Korea has been declining since the early 2000s but has slowed significantly since 2015.
• The number of elderly self-employed individuals (aged 60+) has surged due to the retirement of the second baby boomer generation.
• By 2032, elderly self-employed individuals are projected to account for about 9% of total employment, up from 5.4% in 2015.
• The share of self-employed individuals aged 60+ among all self-employed workers rose to 37.1% in 2024.

2. Vulnerabilities of Elderly Self-Employed Workers

• Elderly self-employed individuals are more likely to operate in vulnerable sectors such as transportation, accommodation and food services, and retail trade.
• These sectors are characterized by low barriers to entry, high competition, and lower profitability.
• Elderly self-employed workers generally exhibit lower productivity and higher debt burdens compared to younger self-employed individuals.
• Many elderly self-employed individuals who exit their businesses transition to temporary or daily employment rather than secure regular wage jobs.

3. Motivations for Elderly Self-Employment

• The Livelihood-Oriented Type (46% of elderly self-employed reentrants) is the largest group, characterized by low pension income and high work intensity, with an average monthly pension of KRW 790,000 and weekly working hours of 46.
• This group prioritizes the "prospect of continuous employment" and is less prepared for self-employment, often entering it due to insufficient retirement readiness.
• Other types include the High-Income-Seeking Type (24%), Leisure-Oriented Type (17%), and Vulnerable Type (13%).
• The Vulnerable Type, with the lowest pension income and working hours, faces significant challenges in maintaining labor supply due to health and caregiving issues, and is better addressed through welfare policy than employment policy.

4. Policy Recommendations

• To reduce macroeconomic risks, policies should encourage older adults to continue in regular wage employment through wage system reforms and post-retirement reemployment.
• A simulation suggests that maintaining 60% of pre-retirement earnings until age 64, followed by a shift to part-time employment at 40% of those earnings, would provide a more stable income trajectory than self-employment.
• Complementary measures such as expanding the service sector and improving job-matching programs between local businesses and retired seniors could help reduce the concentration of elderly individuals in self-employment.
• Employment policy support should primarily target the Livelihood-Oriented Type, who are more economically vulnerable and motivated to seek continuous employment.

Key Information

• Economic Impact: The growing elderly self-employed population may pose risks to financial stability and economic growth due to low profitability, high debt, and limited recovery prospects.
• Sector Concentration: Elderly self-employed workers are disproportionately concentrated in vulnerable sectors, increasing their exposure to economic fluctuations.
• Income and Productivity: Elderly self-employed individuals have lower sales per person and per hour compared to younger counterparts, and face higher debt burdens.
• Transition Patterns: Elderly self-employed individuals are more likely to transition to temporary or daily work after business closure, highlighting limited economic resilience.
• Demographic Trends: The second baby boomer generation's retirement will lead to a large influx of elderly self-employed individuals over the next decade.

Conclusion

The increasing number of elderly self-employed individuals in South Korea is driven by structural demographic changes and insufficient retirement readiness. This trend presents significant macroeconomic risks due to low productivity, high debt, and limited economic recovery potential. Policymakers are advised to focus on creating secure wage employment opportunities for older adults, particularly those in the Livelihood-Oriented Type, to mitigate these risks and promote sustainable economic growth.