Busan, South Korea – In August 2024, Busan reached a troubling economic milestone: the number of self-employed individuals with employees fell to 76,000, marking the lowest level since 1998 for the month of August. This is set against a nationwide increase in self-employment, highlighting Busan’s particular economic struggles, as both business owners and young job seekers express mounting disillusionment with their prospects.
According to Statistics Korea, Busan’s non-wage workforce—comprising self-employed individuals and unpaid family workers—fell to 349,000 this August, down 8.9% from 383,000 a year prior. This stark decline contrasts with the national trend, where non-wage employment dropped by only 1.0%.
The drop in self-employment is especially notable. While nationally, self-employment grew by 1.8%, Busan saw its numbers contract, particularly in businesses with employees, a segment often perceived as more stable. In Busan, the number of self-employed individuals with employees fell by 2.6% from the previous year, a worrying indicator of how consumer spending and local economic dynamics are taking a toll on even the most established businesses.
“Busan’s economy has long been fueled by local spending,” explains economic analyst. “So, when consumer confidence wanes, small businesses—especially those that have employees—are the first to feel the impact. And this downturn is proving to be severe.”
Meanwhile, a rising number of young people are neither working nor actively looking for jobs. Across South Korea, 2.567 million individuals reported “taking a break” from the workforce as of August, an increase of 245,000 from last year. Of particular concern is the growing sense of disillusionment among young adults aged 15-29, 30.8% of whom say they aren’t looking for jobs simply because they believe they can’t find desirable ones.
“Young people are discouraged by a lack of job opportunities that align with their skills and aspirations,” says labor market specialist. “As a result, they’re stepping back from the workforce altogether, choosing instead to wait for better opportunities that may or may not materialize.”
This trend among young people has significant implications for Busan and other areas struggling economically. When the youth workforce begins to disengage en masse, productivity and innovation can be compromised. Busan’s ongoing challenges with self-employment reflect a similar theme: an environment where both business owners and prospective young workers are increasingly unable to find the opportunities they seek.
For many small business owners in Busan, the challenges of maintaining operations are increasingly daunting. Take, for instance, Lee, who runs a family-owned café in central Busan. “We’re seeing fewer customers than before, and we’ve had to make tough decisions, like reducing hours,” she says. “It’s heartbreaking, especially when we’re considering laying off employees who’ve been with us for years.”
For young people, the situation is similarly bleak. “I’ve been job hunting for months, and all I find are positions that barely match my skills or pay enough to cover basic expenses,” shares 27-year-old Choi. “It feels pointless to keep looking, so I’ve decided to wait and see if better opportunities come up.”
These experiences highlight the human side of the statistics, underscoring the pervasive sense of instability that defines the current economic landscape in Busan.
Busan’s unique economic position, in contrast with other major South Korean cities, highlights the need for targeted solutions. While some cities have seen slight improvements, Busan’s dependency on local consumption and tourism, along with a less diversified industrial base, makes it particularly vulnerable.
“Busan is facing challenges that aren’t as pronounced in other cities,” says Park. “To address these issues, we need more focused intervention—from small business relief to programs that directly support young job seekers.”
As the economic picture continues to shift, Busan’s struggles underscore the urgency of a balanced response that supports both small businesses and young workers. For small businesses, relief in the form of financial aid, reduced overheads, or grants for employee retention could help stabilize the sector. For young job seekers, expanded vocational training, youth-targeted job programs, and stronger pathways into viable career roles might help re-engage a crucial segment of the workforce.
Both challenges—the decline in self-employment and youth disillusionment—paint a picture of an economy at a crossroads, where proactive measures will be essential for long-term resilience. Addressing these issues now could secure a more stable future for Busan’s businesses and young people alike, setting the stage for sustainable growth in the years to come.
