A 16-Year-Old Business Head Earning KRW 200 Million a Year: What Business Is It? ... A 7-Year-Old Boss Also Gets KRW 1.73 Million a Month

11 Underage Business Representatives in Incheon
Compensation Filings Show Multiple Cases of Identical Amounts

A 7-year-old child in Incheon has been registered as the head of a business establishment in the real estate, leasing and business services sector and receives monthly remuneration of KRW 1.73 million. Last year, a 16-year-old business head earned an annual salary of KRW 223.46 million.

According to data obtained from the National Health Insurance Service by Heo Jongsik, a Democratic Party of Korea lawmaker on the National Assembly's Health and Welfare Committee representing Incheon's Dong-gu and Michuhol-gu A constituency, 117 people under the age of 18 in Incheon were enrolled in employee health insurance as of the end of July. Of these, 11 (9.4%) were heads of business establishments.

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The 11 minor business heads were between the ages of 7 and 16: two were 7 to 9 years old, five were 10 to 12, and four were 13 to 16. All 106 employee health insurance subscribers who were not business heads were at least 15 years old. Under the Labor Standards Act, people under 15 generally cannot be hired as employees.

The youngest among the minor business heads was 7, while the one with the highest remuneration was 16. The 7-year-old business head had monthly remuneration of KRW 1.73 million and total remuneration of KRW 17.67 million. The 16-year-old received KRW 18.62 million a month, for an annual salary of KRW 223.46 million. By contrast, the average monthly remuneration of the 106 minor employee subscribers who were not business heads was about KRW 1.06 million.

Records of reported remuneration also showed repeated instances of identical amounts. The monthly remuneration reported for the 7- and 9-year-old business heads in the real estate, leasing and business services sector was identical down to the last digit at KRW 1,734,166 each. Two business heads, aged 15 and 12, reported identical monthly remuneration of KRW 5,286,932 and total remuneration of KRW 63,443,184 for last year. Three business heads, including one aged 10 and two aged 12, each reported monthly remuneration of KRW 1,691,666 and total remuneration of KRW 20,299,998 for last year. The business heads aged 11 and 13 also reported identical figures: monthly remuneration of KRW 1,677,206 and total remuneration of KRW 20,126,472 for last year.

By industry, real estate, leasing and business services accounted for the largest share of the 11 minor business heads, with eight (72.7%), while the remaining three (27.3%) were in transportation, warehousing and communications. Namdong-gu had the most business locations, with six, followed by Michuhol-gu and Gyeyang-gu with two each, and Yeonsu-gu with one.

Under the current system, minors can register as business operators and become heads of business establishments. However, concerns have been raised that registering children and teenagers who are unlikely to participate meaningfully in management as heads of real estate or leasing businesses and paying them remuneration could be used to reduce tax burdens by distributing income among family members or as a means of improper gift transfers.

Rep. Heo stressed, "It is not illegal in itself for a minor to be registered as the head of a business establishment, but it is unusual for an elementary school-age child to be registered as the head of a real estate rental business and receive KRW 1.7 million a month. The National Health Insurance Service, the National Tax Service and other tax authorities should thoroughly examine whether minor business heads are genuinely involved in management and whether income is being distributed or gifts are being transferred improperly. They should also establish measures to identify such cases."

This content was produced with the assistance of AI translation services.