Just 0.1 percent of businesses in Korea account for almost one-third of private sector output, the latest state report said Tuesday, showing seriously skewed income distribution in Asia’s fourth largest economy.
Statistics Korea said 0.1 percent from a total of 3.35 million businesses in operation produced 1.32 quadrillion won ($1.15 trillion), or 30.7 percent of total revenue in 2010.
Self-employed businesses with less than five workers each made up 83.6 percent of the total number of licensed businesses, but their combined sales were 11.3 percent of the total sales, 4.28 quadrillion won.
Corporations, making up 10.5 percent of the 3.35 million businesses, took 77.6 percent of the total revenue produced last year. Most of the self-employed businesses were family owned restaurants or lodges. The total number of workers at self-employed companies was 6.9 million, meaning each had an average of 2.5 workers last year.
By sector, manufacturing made the most output, producing 1.47 quadrillion won, or 34.2 percent of the total revenue last year. Wholesale and retail, making up 26.1 percent from the total number of businesses, came second, producing 826 trillion won, or 19.3 percent of the total in 2010.
By Cynthia J. Kim (
cynthiak@heraldcorp.com)
