People around me thought I was making a mistake. “Why would you leave a stable job?” “Do you have any idea how hard it is to run your own business?” Honestly, I half-ignored all of it. I figured I’d learn by doing.
Seven years later, I think I finally understand what I didn’t know back then.
Right now, I’m waiting on a building permit for my own workspace — my own garage, built the way I want it. I’ve been going back and forth with the local authorities, working through the approvals process. While I wait, I figured this was a good time to talk honestly about what self-employment actually looks like in Korea.
More People Run Their Own Businesses Here Than You’d Think
Korea has one of the highest rates of self-employment in the developed world. The OECD average sits at around 15%, but Korea has at times exceeded 30%. Even now, it hovers around 25% — still well above most comparable countries.
That means the competition is fierce. Walk down any neighborhood street and you’ll find cafes, fried chicken restaurants, and car washes practically side by side. For every new business that opens, another one closes. According to Statistics Korea, roughly half of all small businesses shut down within three years of opening.
Knowing that going in would have made me better prepared. I didn’t, so I learned it the hard way.
Budget for Twice What You Think You’ll Need
There’s a piece of advice you hear constantly when starting a business: “Prepare double your estimated costs.”
I heard it. I nodded. I didn’t really listen.
The obvious costs are manageable — equipment, rent, fit-out, initial inventory, licensing fees. You can plan for those. What’s harder to plan for is everything else: the first few months where income is almost nothing, equipment that breaks down sooner than expected, unexpected repair bills, accounting fees you didn’t factor in.
My actual costs came in at about 1.5 times my original budget. Looking back, I think I got off relatively lightly.
Don’t Underestimate the Paperwork
One of the things that surprises foreigners most about starting a business in Korea is the administrative process. Korea is an incredibly well-organized country — which also means it runs on procedure.
The basic business registration is actually straightforward. You can do it online through the National Tax Service (Hometax), or walk into a tax office and have it done within a day. That part’s fine.
The complications come after. Depending on your industry, you’ll need specific permits or registrations beyond the basics. For car detailing, that means registering as a car wash business, navigating environmental regulations, and dealing with wastewater disposal requirements. If you don’t know about these in advance, they can stop you in your tracks right before you’re ready to open.
I’m living this right now — sitting here waiting for a building permit while coordinating with local government offices. It’s not impossible. It just takes longer than you expect, and requires more patience than most people budget for.
No Regrets, Though
I’ve painted a fairly honest picture of the challenges here, but I don’t want to leave the wrong impression.
Starting a business is hard. The difference is whether you go in knowing that or not. I went in not knowing, which meant I hit obstacles that better preparation could have softened.
Over the next few years I’ll keep sharing what I’ve learned — the mistakes, the small wins, and what it actually looks like to build something from nothing in a small Korean town. If you’re thinking about starting something of your own, or just curious about what self-employment looks like here, I hope some of this ends up being useful.