Business · Economy · 16 hrs ago

Most growth in South Korea's business-income workers was in a suspect category

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.

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What people are saying

Kim Ju-youngDemocratic Party lawmaker
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.
via Yonhap
Ha Eun-seongLabor attorney at Saetbyeol Labor Attorneys Office
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.
via Yonhap