Average Business Duration Longest Among Taiwanese Owners
A recent survey found that more than 7 out of 10 foreign self-employed business owners in South Korea, operating restaurants, beauty salons, and similar establishments, are Chinese nationals. On average, Taiwanese business owners had the longest operating periods.
On December 23, Yonhap News reported, citing the Immigration Policy Institute's report on "The Status of Foreign Self-Employed Residents in Korea," that most foreign self-employed business owners operated small businesses with annual sales of less than 300 million won. However, there were also some establishments in areas such as Gangnam, Seoul, and Seongnam, Gyeonggi Province, that earned more than 1 billion won.
Incheon Chinatown. (This photo is not directly related to the article.) Provided by Incheon Jung-gu Office
As of June this year, the institute analyzed 10,323 stores registered as sole proprietorships with Shinhan Card and operated by foreigners. The results showed that 72.5% of the business owners were Chinese nationals, followed by the United States (6.2%), Canada (3.7%), Taiwan (3.1%), and Europe (2.8%).
By nationality, Taiwanese business owners had the longest average operating period at 104.3 months. The United States and Canada followed, with 63.5 months and 68.9 months respectively, meaning they operated for more than five years. Chinese business owners had an average of 43.8 months, which was shorter than the overall average of 48.1 months.
The institute suggested that these results may be related to a shift in the composition of foreign residents in Korea-from being predominantly Taiwanese (Huaqiao) and those from the Americas, to a surge in Chinese and Commonwealth of Independent States (CIS) nationals following amendments to the Overseas Koreans Act.
September 30 last year, Myeongdong Street, Seoul. (The photo is not directly related to the article.) Photo by Yonhap News
By industry, food service and entertainment accounted for the largest share at 61.5%, followed by beauty services (11.1%), food and beverage retail (5.9%), education and private academies (3.9%), and healthcare (3.6%). The proportion of industries varied by country: nationals from Asian countries such as China, Taiwan, and Uzbekistan were more likely to be engaged in food service and entertainment, while those from the United States and Canada were more involved in education, private academies, and healthcare.
The majority of foreign self-employed business owners (73.9%) operated small businesses with annual sales of less than 300 million won. The breakdown was as follows: 300 to 500 million won (11.8%), 500 million to 1 billion won (10.1%), 1 to 3 billion won (4.1%), and over 3 billion won (0.1%). The region with the highest proportion of businesses earning more than 1 billion won was Gangnam-gu, Seoul, at 6.7%, followed by Seongnam, Gyeonggi Province (3.9%), Yeongdeungpo-gu, Seoul (3.7%), and Suwon, Gyeonggi Province (3.7%).
Regarding these results, the research team stated, "Foreign self-employed business owners are presumed to be mainly compatriots or marriage immigrants, or those with residence or permanent residency status, who are eligible for free economic activity. If additional information, such as foreigner registration data, is supplemented in the future, more accurate and detailed analysis will be possible."
Meanwhile, according to the "2025 Survey on the Status and Employment of Immigrants" released by the National Data Agency on December 18, as of May, there were 1,109,000 employed foreign residents aged 15 or older living in Korea, the highest number since statistics began in 2012. This figure represents a 9.8% increase in just one year, with most foreign workers employed in the mining and manufacturing sectors.
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