While the KOSPI has surged past 6,000, bringing vitality to capital markets, self-employed business owners are struggling with rapidly mounting debt amid high interest rates and a weakening real economy.
The government's decision to freeze the benchmark interest rate to stabilize the real estate market has tightened lending conditions, increasing the interest repayment burden for small business owners.
The National Assembly Futures Institute released its "2025 Self-Employment Survey Results" on the 26th, calling for "a risk-based support system that preemptively manages high-debt groups."
The institute noted that the self-employment sector is suffering from a worsening high-cost, low-efficiency structure. Annual average revenue for self-employed workers reached 172.4 million won, recovering to pre-COVID-19 levels. However, operating costs rose from 119.92 million won before the pandemic to 124.6 million won after, preventing revenue recovery from translating into actual profit improvement.
The institute identified debt problems caused by high interest rates as a critical risk factor for the self-employment ecosystem. The survey found that 44.7% of all self-employed individuals carry debt, with average debt reaching 59.2 million won.
"Debt levels decreased after COVID-19 but have recently risen again," the institute said. "About 20% of debt holders pay more than 500,000 won in monthly interest."
The institute added: "High interest rates and loan recalls are overlapping, making repayment burdens a key constraint on business operations. Relief measures for repayment burdens, restructuring support, and exit cost assistance are needed."