Lee Chang-yong, the governor of the Bank of Korea, argued that government support for self-employed individuals should be designed to selectively support those with high growth potential. He noted that self-employed individuals who are struggling in competition should be encouraged to transition into other jobs.
In his opening remarks at the '2025 BOK Regional Economy Symposium' held on the afternoon of the 17th at the Kim Dae-jung Convention Center in Gwangju, the governor said, “While large companies in the capital region quickly adapted to changes in online platforms and achieved results, small businesses in non-capital regions that relied on traditional storefront retail have seen their business foundations weaken, making management even more difficult.”
The governor pointed out that the polarization phenomenon among self-employed individuals has also intensified. He said, “With the recent growth of online platforms, another change is taking place in the self-employed environment,” noting that “while there are aspects of improved market and customer accessibility, competition has also become more intense.”
According to the Bank of Korea, the gap in sales between the top 20% and bottom 20% of retail self-employed businesses widened from 110 times in 2018 to over 230 times in 2023. In this regard, the governor assessed, “The phenomenon of ‘only the successful places are doing well’ has become more severe.”
The governor advised that government support for self-employed individuals should be focused on areas with high growth potential. He mentioned, “In response to polarization, the government has increased support for self-employed individuals, and its effects have been significant for startups, young people, small businesses, and those in non-capital regions,” but pointed out that “support for businesses that have already seen declines in productivity has not been very effective.”
He emphasized, “Policies for self-employed individuals should carefully select and adequately support those with high growth potential,” and added that “self-employed individuals who are struggling in competition should also be induced to transition into other jobs when appropriate.”
The governor stated, “Through policy support, success stories within the self-employed sector should continue to emerge, and a virtuous cycle should be established in which capable latecomers are nurtured,” and highlighted that “through 'selection and concentration,' efforts should be focused on areas with high growth potential.”