Harimgak, a famous large Chinese restaurant located in Buam-dong, Jongno-gu, Seoul, closed on the 1st. It was because they could not afford the deficit caused by the novel coronavirus infection (Corona 19). It is the first declaration of business suspension since opening in 1987. The crisis of self-employment caused by Corona 19 was so severe that it could not exceed a luxury restaurant with a history of 34 years.
According to the National Statistical Office on the 25th, the number of self-employed (including related workers) last year was 6.63 million, down by 110,000 from a year ago. The decline was the most in 5 years since 2015 (-163,000 people). It surpassed the decline in wage workers (-108,000 people), which is represented as a’paid worker’.
A rental notice is posted on Myeongdong Street, Jung-gu, Seoul, on the morning of the 24th, the first weekend of the easing of distancing guidelines to prevent novel coronavirus infection (Corona 19). News 1
The total number of self-employed workers was less than a third compared to wage workers (20,332,000), but the number of unemployed was more. This means that the unemployment cold that hit the self-employed world was that much.
Among all self-employed people, the situation is even worse, except for’I’m the boss alone (self-employed without an employee)’ and a family working without pay (unpaid family worker). The number of self-employed people with employees was 1.372,000 last year, down 165,000 in one year. This is the largest decline since 1998 (-169,000 people), when the international currency crisis hit the International Monetary Fund (IMF).
It is common for self-employed people in trouble to go through the procedure of having an employee → leaving the employee and packing it with family or alone → closing the business. If the Corona 19 incident continues this year following last year, there is a situation of concern about the collapse of the self-employment sector beyond the IMF period.
Self-employed business closes one after another due to corona. Graphic = Reporter Kim Kyung-jin [email protected]
The self-employment loss compensation system, which is being discussed mainly by the ruling party, is focused on cash support, which did not have a significant effect on the emergency disaster support payment three times last year. Only the tug-of-war between the party and the government is continuing over the system content and financial resources.
On this day, the ruling Democratic Party, the ruling party, officially formulated the “pass of the provisional National Assembly in February and payment at the latest in early April” with a compensation system for losses (policy committee chairman Hong Ik-pyo). Deputy Prime Minister Hong Nam-ki and Minister of Strategy and Finance, on the 24th, absent from the party, government, and government meetings on the grounds of a cold and indirectly expressed their opposition, but the’break’ did not occur. The ruling party is running a speed battle for payment before the re-election by-election on April 7. The opposition’s offensive of “ticketing” is useless.
The Democratic Party is pursuing a plan to regulate the basis for compensation for losses by law, and to adjust the scope and standards of detailed compensation through the enforcement decree. However, once a nail is nailed by law, unlike the one-time disaster support fund, it is difficult to return. Controversy over differential compensation and interpretation of laws may arise after actual payments are made based on this law. This is the background of growing concerns over the’quick legislation’ aimed at the April election.
Prime Minister Jeong Sye-gyun is speaking at a new coronavirus infection (Corona 19) Central Defense Countermeasure Headquarters meeting held at the Seoul Government Complex in Jongno-gu, Seoul on the morning of the 25th. News 1
Sang-bong Kim, professor of economics at Hansung University, said, “Even in the same group ban, business restricted business, fitness centers and karaoke rooms were not open at all, and restaurants and cafes could not be delivered.” “It wasn’t right, but as we’re pushing for legalization this time, we need a detailed design.”
Professor Kim said, “In fact, it is not difficult to classify self-employed persons and provide differential support according to the degree of damage. “It is not something that public officials have not done so far,” he said.
Another problem is that the self-employment crisis is not at a level that can be prevented with loss compensation. According to statistics from the National Statistical Office, the number of self-employed people decreased by 399,000 over the 10 years from 2011 to last year. In the same period, the number of wage workers increased by 3223,000. As the economy grows and the industrial structure develops, the proportion of self-employment is gradually decreasing. Last year’s COVID-19 outbreak only accelerated the restructuring of self-employment, which was already underway.
Self-employment restructuring. Graphic = Reporter Kim Kyung-jin [email protected]
Kwon Soon-won, a professor of business administration at Sookmyung Women’s University, “There is a’forced experiment’ that changes the working culture and way of life, such as non-face-to-face work and drinking, and it is highly likely that this change will continue even if the infectious disease situation is resolved. It is inevitable, but it is not a problem to be solved by providing cash several times to self-employed zombie businesses.”
Prof. Kwon said, “In the short term, it is time to provide policy subsidies for survival, but in the mid to long term, it is time to urgently prepare a plan for self-employed workers to make a soft landing in the wage labor market again.” It is more important to systematically equip administrative services such as education and training, and various job placements.”
Sejong = Reporter Cho Hyun-sook [email protected]