By Yoon Ja-young



While many retirees are pouring their fortunes into opening franchise shops, 66 of them close down every day on average. Experts say that there should be more job options for retirees.



According to Korea Fair Trade Mediation Agency data released Wednesday, the number of franchisers in the country totaled 4,268 last year, up 9.2 percent from a year ago. Franchisers allow third parties to run businesses using their brands. Franchise businesses have been booming, recording a 59.4 percent rise from four years ago.



These franchisers were operating 5,273 franchise brands, among which 76.2 percent were eateries.



The number of franchise shops totaled 218,997 as of 2015, a 5.2 percent increase from the previous year. Among them, convenience stores topped the list with 30,846, followed by fried chicken shops at 24,678, and Korean restaurants at 19,313.



The number of franchise shops that opened in 2015 stood at 41,851. This means 114 shops opened daily on average. The number of shops that closed down, meanwhile, stood at 24,181, or 66 a day. Out of 100 shops that open, 9.9 will go out of business.



Franchise shops recorded 308 million won in annual sales, on average that year.



Amid the economic slump, many retirees in the country have no other option but to start their own businesses. According to a survey of 1,136 Koreans aged 40 or above, Koreans want to continue working until they are 69.4 years old, 9 years more than the average official retirement age at businesses, according to the Center for Large and Small Business Cooperation under the Federation of Korean Industries which conducted the survey.



They said they need on average of 2.79 million won a month to cover their expenses after retirement. When asked how they would make their living after retirement, 59.1 percent wanted to get a job, while only 11.4 percent said they wanted to start their own businesses. Among those surveyed, 655 were looking for jobs and 43.5 percent of them have been looking for jobs for more than a year.



They often choose to open a franchise shop on the expectation that the franchise headquarters will help them run the business without risks.



"A considerable number of middle aged Koreans lack the preparation for life after retirement, but there are few jobs available for them," said Bae Myung-han, head of the center. "The labor environment should change so they can work as long as they want. The whole society should also change its perception."



Opening a shop under a franchiser is often costly and the retirees have to invest much of their own money.



According to CEO Score, a business information provider, it costs 479 million won to open a Burger King franchise shop. This includes subscription and training fees, a deposit and other expenses; but interior decoration and shop rent are not included. It also costs over 400 million won to open a shop with the fast food chain Lotteria, or Lotte Super. To open a Mr. Pizza franchise, it costs 279 million won.



