This study aims to estimate the employment and economic scale of the nonprofit sector. To this end, the nonprofit, for-profit, and government sectors were separately extracted from the Statistical Business Register (SBR) using the Business Registratio...
This study aims to estimate the employment and economic scale of the nonprofit sector. To this end, the nonprofit, for-profit, and government sectors were separately extracted from the Statistical Business Register (SBR) using the Business Registration Code, Legal Entity Classification Number, and Korean Standard Industrial Classification (KSIC). The analysis reveals that the nonprofit sector employs approximately 3.33 million individuals, accounting for 15.97% of total employment across all industries (excluding agriculture, forestry, and fishing), confirming its pivotal role in the labor market. The identified characteristics of the nonprofit sector include: (1) a “high inactivity rate and low closure rate of establishments,” reflecting the sector's unique ecological characteristics; (2) a “Multilayered Gender Gap” combining malecentered employment stability in permanent positions and male dominance in decision-making authority; and (3) the “fragility of associations and membership organizations,” in contrast to the economies of scale observed in the health and social welfare industries. According to the economic scale estimation through Input-Output analysis, the nonprofit sector's production inducement effect is greater than that of the government sector, while its employment and value-added inducement effects surpass those of the for-profit sector. In particular, the total economic impact of the nonprofit sector is estimated at 24.54% relative to the 2023 nominal GDP. This study proposes policy alternatives, such as inter-ministerial data linkage for precise identification of the nonprofit sector, the introduction of a Satellite Account on Nonprofit Institutions (SNA-NPI), and the institutionalization of the sector within national statistics.