South Korea’s gig economy surges to 2.3Mn new workers in 5 years
SEOUL, SOUTH KOREA — The gig economy in South Korea has experienced a significant surge over the past five years, with the number of gig workers increasing by 2.33 million, The Korea Herald reported.
Rapid growth in non-traditional employment
Citing data from the National Tax Service, Rep. Choi Ki-sang of the Democratic Party of Korea revealed that the total number of gig workers rose to 8.3 million in 2022 from 6 million in 2018, marking a 38.6% increase.
Gig workers, defined as “non-wage workers” in the report, refer to those who provide services independently and receive compensation based on their work performance. This broad category includes freelancers, independent contractors, and platform workers, such as delivery drivers, golf caddies, and designated drivers.
Younger and older workers lead the surge
The most notable increases in gig work were observed among two distinct age groups: those 60 and older, and individuals under 30.
The number of gig workers aged 60 or over nearly doubled, jumping to 1.3 million in 2022 from 699,098 in 2018, representing an 86.6% increase.
Similarly, workers under 30 saw a substantial rise, growing to 2.03 million from 1.41 million during the same period, a 43.8% increase.
This trend suggests that both younger job seekers and retirees are increasingly turning to gig work, either out of necessity or for additional income.
Income challenges in the gig economy
Despite the growth in numbers, gig workers face significant income challenges.
The average annual income for gig workers in 2022 was 11.14 million won ($8,400), considerably lower than the 21 million won ($16,000) annual salary based on minimum wage.
Younger workers under 30 earned even less, with an average of 7.22 million won ($5,400), while those 60 or over earned slightly more at ($7,100).
These figures highlight the financial vulnerabilities faced by many in the gig economy, particularly younger workers.
Factors driving the gig economy growth
Several factors contribute to the expansion of South Korea’s gig economy. It includes:
- The technological advancements in the country
- Increase in available platforms
- Rising preference for flexible work arrangements
- Difficulty for younger job seekers to secure traditional employment
- Demand for part-time work among retirees in an aging society
Government response and future outlook
Rep. Choi emphasized the need for government action, stating, “To protect these vulnerable workers, who often fall outside the scope of labor laws, the government should develop accurate statistics and implement appropriate measures to safeguard their labor rights.”
As the gig economy continues to grow, policymakers face the challenge of balancing the benefits of flexible work with the need for worker protections and financial stability.
