Business · Economy · 16 hrs ago
Most growth in South Korea's business-income workers was in a suspect category
South Korean tax data show the number of people subject to withholding tax on business income rose by about 2 million, or 29.9%, from 2019 to 2024.
About 90% of that increase was in a broad category for other self-employed workers that includes freelancers and short-term workers.
Some people in this category are suspected of being employees paid under contracts that treat them as self-employed, avoiding standard employment responsibilities.
The number of people aged 60 and over in the category more than doubled to about 776,000 over the six years.
The figures also point to concerns for care workers: more than half of those reporting business income as caregivers had hospitals withholding their tax, and care workers whose tax was withheld by nursing hospitals had average annual income of about 15.1 million won.
The data raise concerns about low pay and workers' access to legal protections, including for young workers, whose average annual income in the category was about 6.31 million won.
A lawmaker called for targeted labor inspections, and a labor expert urged checks on hospitals using shared-care arrangements; the sources do not say whether inspections have been scheduled.
South Korea’s business-income worker population grew by more than 2 million from 2019 to 2024, and 90.1% of the increase was in a category suspected of including workers misclassified as self-employed.
The category, called “other self-employed,” includes 1,804,109 people and covers work such as part-time jobs and freelancing.
The number of people aged 60 and over registered in this category more than doubled over the six years, to 776,049.
The report also found that more than half of workers reporting business income under a caregiver occupation code had hospitals or clinics withholding their tax.
A lawmaker called for targeted labor inspections to help workers classified as business-income earners claim their rights.
- Who
- South Korean workers registered as business-income earners, including older workers, young people and caregivers.
- What
- A lawmaker’s analysis found most growth in business-income workers was in the “other self-employed” category, which may include workers in suspected sham 3.3% contracts.
- When
- The figures cover 2019 to 2024; the report was published on November 8, 2026.
- Where
- South Korea.
- Why
- The analysis raised concerns that some workers may be treated as self-employed despite working under an employer, potentially avoiding employment protections and responsibilities.
This story does not have two clearly opposing sides.
South Korea had 6,688,444 people subject to business-income tax withholding, including 369,926 people aged 60 and over in the “other self-employed” category.
The number subject to business-income tax withholding reached 8,690,922, including 776,049 people aged 60 and over in the “other self-employed” category.
Yonhap reported the findings of an analysis of National Tax Service statistics obtained by lawmaker Kim Ju-young’s office.
- Business-income earners
- 8,690,922 in 2024
- Increase since 2019
- 2,002,478 people, or 29.94%
- Other self-employed” share of increase
- 90.1%, or 1,804,109 people
- People aged 60 and over in “other self-employed
- 776,049 in 2024
- Caregivers with hospitals or clinics withholding business-income tax
- 32,022 of 56,518 in 2024
What people are saying
The Ministry of Employment and Labor needs to conduct labor inspections based on detailed standards by industry and age to provide practical remedies for workers classified as business-income earners.
As industrial accident insurance for caregivers is being discussed, preemptive inspections of hospitals that avoid employer responsibilities while operating a joint-caregiving system are urgent.