Entrepreneurship surges among youth in Korea

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The number of businesses nationwide in South Korea increased by more than 60,000 in 2022 compared to the previous year, driven particularly by a surge in entrepreneurship among those in their 20s and 30s.

According to Statistics Korea on Monday, the total number of businesses last year was 6,141,263, an increase of 1 percent, or 61,561, compared to 2021. The number of employees in these businesses also grew to 25,211,397, increasing 1.1 percent, or 279,797, from the previous year.

Among different age groups, those in their 50s had the highest proportion of businesses at 31.8 percent, followed by those in their 40s at 26.3 percent, and those aged 60 and above at 23.4 percent. Compared to 2021, businesses owned by individuals in their 20s and under increased by 3.4 percent, or 9,000, and those owned by individuals in their 30s increased by 3.2 percent, or 27,000, to lead the growth trend.

Entrepreneurs in their 30s were primarily venturing into coffee shop businesses, attracted by the relatively easier entry compared to other industries and continuously growing domestic coffee consumption, according to Statistics Korea.

For entrepreneurs in their 20s, the statistics revealed an increase in beauty businesses, particularly in nail art and skincare.

“The increase in youth entrepreneurship is centered around businesses that garner significant public interest and are relatively easy for the younger generation to operate,” a Statistics Korea official said.

Post-Covid improvements in face-to-face services are also believed to have prompted more young people to venture into these businesses.

Entrepreneurship in the beauty sector increased across all age groups, particularly in skin care and other beauty-related businesses. Skin care and nail salons saw significant increases by 11.3 percent and 11.2 percent respectively, while hair salon businesses saw an increase of 1.7 percent.

When looking at the number of employees by industry, those in the accommodation and food service industry rose by 116,000 employees, and those in the healthcare and social welfare industry increased by 95,000 employees. But the wholesale and retail trade industry lost 78,000 employees, while the construction industry lost 54,000 employees.

In terms of the number of businesses by region, cities such as Seoul, Daegu, and Busan saw decreases, while numbers in Gyeonggi Province, Incheon Metropolitan City, and South Gyeongsang Province increased. The number of employees also rose in Gyeonggi Province and Incheon declining in Gwangju Metropolitan City and Jeju Island.