Hair salons in South Korea have the highest survival rate among newly launched small businesses, according to new data released by the National Tax Service (NTS). In contrast, online retail ventures showed the highest closure rates.
The report looked at five years of data across the 100 most common types of small businesses. As of 2023, the average three-year survival rate was 53.8%, slightly down from 54.7% in 2022.
Among the top 20 business types with the most new registrations in 2023, hair salons led with a 73.4% survival rate. Guesthouses followed closely at 73.1%, and private academies, known as hagwons, came in third at 70.1%.
Online retail had the lowest three-year survival rate at 45.7%. Snack bars and fast food restaurants also struggled, with rates of 46.6% and 46.8%, respectively.
Age also played a role. Entrepreneurs under 40 had the most success with hair salons, while those over 40 did best with guesthouses. The least successful ventures were snack bars for younger business owners and pubs for older ones.
The NTS stated it will continue to release helpful data to guide citizens in making informed business decisions.