As of 2022, it was reported that there are more than 1 million individual creative corporations in the country. The average revenue of these corporations was 236 million won, and the net profit was 34.8 million won.
The Ministry of SMEs and Startups announced the results of the '2024 Survey on Individual Creative Corporations' on the 19th. This survey was conducted from August to November of last year on individual creative corporations corresponding to 43 subcategories in the Korean Standard Industrial Classification registered in the 2022 Business Statistics Register (SBR) by the Statistics Korea.
Individual creative corporations are defined as businesses operated by one person or fewer than five partners with no regular employees. Certain sectors such as real estate, wholesale and retail, accommodation, restaurants and pubs, mining, water supply, transportation, and finance and insurance are excluded.
As of 2022, the total number of individual creative corporations was 1,007,769, showing an increase of 2.0% compared to 987,812 in 2021.
By industry, it was found that manufacturing (24.2%), e-commerce (24.2%), education services (17.3%), and professional, scientific, and technical services (10.8%) are the main sectors in which they operate. The proportion of these four sectors reached 76.5%.
By region, Gyeonggi Province accounted for 28.5% (287,000), Seoul 22.6% (258,000), Busan 6.2% (62,000), Gyeongnam 6% (60,000), and Incheon 5.5% (55,000). The metropolitan area made up 56.6% (570,000), while non-metropolitan areas accounted for 43.4% (437,000).
The average length of operation was about 12.6 years, with 41.2% of corporations established before 2011, indicating a long-term maintenance of the individual creative corporation form. The correlation with previous industries was 63.4%, and the average period of employment before starting the business was 15.5 years, with 63.4% having worked in small and medium enterprises.
The average age of representatives of individual creative corporations is 54.7 years, with males accounting for 72.6% and females 27.4%, while the average revenue per corporation was 236 million won, and the net profit was 34.8 million won.
Due to the nature of individual creative corporations, it was surveyed that there are more individual businesses (85.9%) than incorporated corporations (14.1%). Among major clients, individual consumers (B2C) accounted for the largest proportion at 68.8%, followed by enterprises (B2B) at 28.5% and government/public institutions (B2G) at 2.5%.
The motivation for starting individual creative corporations was primarily to earn higher income (37.8%), to showcase abilities and talents (28.1%), and for subsistence (14.6%). The average preparation period for starting a business was found to be 11.7 months. Additionally, the average period to generate the first revenue after starting the business was 2.7 months, and the average time to reach the break-even point was 28.6 months.
Chang Kyeong-won, director of startup policy at the Ministry of SMEs and Startups, noted that the results of this survey show that 'individuals often start businesses in their middle age after around 15 years of work, equipped with expertise and creativity around the age of 40' and added, 'We will do our best to create an environment where capable individuals can jump into entrepreneurship.'