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South Korea Sees First Rise in Non‑Wage Workers in Three Years, Driven by Elderly and Youth Entrepreneurship

In August, South Korea’s non‑wage workforce climbed to 6.625 million, up 71,000 from a year earlier, marking the first rebound in three years as older adults and young adults opened new businesses.

By WorldVoice 360Source: english.news.cn2 min read

In brief

South Korea’s number of non‑wage workers, encompassing the self‑employed and unpaid family workers, increased for the first time in three years in August, according to data released by the Ministry of Data and Statistics. The rise—mainly fueled by new business openings among people in their 30s and seniors aged 70 and older—brought the total to 6.625 million, or 22.7 % of the country’s employed population. While the self‑employed grew significantly, unpaid family workers fell by 37,000 to 841,000.

South Korea’s workforce experienced a notable shift in August, as the number of non‑wage workers rose to 6.625 million, up 71,000 from the same month last year, according to data released by the Ministry of Data and Statistics and reported by Xinhua.

This marks the first rebound in the category in three years, after the count slipped from 6.724 million in 2023 to 6.657 million in 2024 and then 6.554 million in 2025. The change nudged non‑wage workers into a 22.7 % share of the country’s total employed population, an increase of 0.1 percentage point from a year earlier.

Two segments of non‑wage labor – the self‑employed with employees and the self‑employed without employees – recorded strong growth. The former grew by 47,000 to 1.481 million, while the latter expanded by 62,000, reaching 4.303 million. These increases contrast with a decline in unpaid family workers, which fell by 37,000 to 841,000.

The surge was most pronounced among specific age groups. Workers in their 30s added 55,000 to the non‑wage tally, the largest gain among all age brackets. The youth cohort aged 15 to 29 saw a modest rise of 24,000.

Most strikingly, seniors aged 70 and older grew by 23,000, bringing their total to 965,000. This group now represents 14.6 % of all non‑wage workers, the highest proportion recorded since data collection began in 2007.

Experts attribute the uptick to a renewed wave of entrepreneurship among the elderly and young adults. The policies encouraging small‑business formation, coupled with the expansion of digital platforms, have lowered barriers for these groups to launch ventures.

Although the overall number of unpaid family workers has decreased, the data suggest that the professionalization of family enterprises may be underway, as more individuals transition into formal self‑employment or formal employment within their family businesses.

As the South Korean economy continues to evolve, the rise in non‑wage workers signals a shift toward more flexible working arrangements and the potential for increased economic participation across all age groups.

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