(MENAFN) South Korea's independent workforce experienced a significant contraction in August as the self-employment sector shed more than 100,000 positions compared to the same month last year, according to official figures released Wednesday.

Data from the Ministry of Data and Statistics revealed that non-wage employment—encompassing business owners with staff, solo entrepreneurs, and family workers receiving no formal compensation—dropped to 6,554,000 in August, marking a year-over-year decline of 103,000 positions.

The steepest losses occurred among solo operators working without hired help, whose ranks decreased by 65,000 to reach 4,241,000. This category, referred to as own-account workers, includes independent farmers, fishing industry workers, freelance professionals, creative artists, market vendors, and street sellers.

Business owners who maintain payrolls saw a smaller but notable reduction of 5,000, bringing their total to 1,435,000 during the reporting period.

Family members contributing unpaid labor to household-run enterprises experienced a contraction of 33,000, settling at 879,000 in August compared to the previous year's figures.

Demographic analysis of the non-wage workforce shows workers aged 60 and above dominate the sector at 41.1 percent, with those in their fifties representing 26.3 percent and forty-somethings accounting for 19.1 percent of the total.

Industry breakdown indicates agricultural, forestry, and fishery operations lead at 20.9 percent of non-wage positions, followed by wholesale and retail commerce at 16.7 percent, with lodging and food service businesses comprising 13.5 percent.

The decline signals ongoing structural shifts in South Korea's labor market as traditional self-employment pathways continue to erode.

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