Self-employed fold in droves amid severe slump

SEOUL, Feb. 13 (Yonhap) -- The number of self-employed South Koreans has plunged
over the past few months as businesses were buffeted by faltering sales amid a
protracted economic slump, government data showed Friday.
As of the end of January, there were a total of 5.59 million sole proprietors in
the country, down 416,000 from November, according the data provided by the
Ministry of Strategy and Finance and the National Statistical Office.
The number of self-employed people fell below the 6-million mark in December for
the first time since 2000 as the economy was hit hard by deepening recession
woes. The January figure marked the lowest level since 5.52 million in February
2000.
The decline is attributed to the fast sliding economy, which caused consumers to
tighten their purse strings and forced one-man operations out of business due to
bloating losses.
South Korea's economy shrank 5.6 percent in the final quarter of last year from
three months earlier, the first contraction in more than a decade. The government
predicted the economy will shrink 2 percent and shed around 200,000 jobs this
year.
The government is striving to bolster the country's rapidly-weakening domestic
demand through diverse tax breaks, deregulation and other economy-boosting
measures.
On Tuesday, Finance Minister Yoon Jeung-hyun said that he will push for an extra
budget as soon as possible that would aim to stimulate consumer demand and
generate more jobs.
kokobj@yna.co.kr
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