Streamlining Contracts for Seoul’s Gig Economy

The Seoul Metropolitan Goverment is doubling down on its commitment to supporting freelancers and small businesses by expanding its electronic contract service. This initiative aims to replace conventional paper contracts with a more efficient and transparent online system, ensuring that workers’ rights are clearly defined and protected.

Free Electronic Contract Service: Who Can Benefit?

Up to 200 businesses in Seoul will be selected on a first-come, first-served basis to receive free access to the electronic contract service for one year. The program targets a diverse range of sectors, including:

• Caregiver associations
• Job agencies
• Nursing hospitals
• visit lesson platforms
• MCNs (Multi-Channel Networks, representing content creators)
• Workplace-related businesses (health, yoga, Pilates studios, etc.)

This expansion builds upon a accomplished pilot project last year that focused on exercise trainers, demonstrating the city’s commitment to adapting the program to meet the needs of various industries.

Enhanced Security and Convenience: Features of the Electronic Contract Service

The electronic contract service offers a suite of features designed to enhance both security and user experience. These include:

• Signatory authentication
• Simple transmission functions (single and mass sending)
• Branding options (adding business trademarks)
• Team document management
• External program automation

These features streamline the contract process,making it easier for businesses and freelancers to manage their agreements effectively.

Support Details and Eligibility

Selected businesses can create up to 40 contracts per year using the electronic system. Businesses with multiple branches in Seoul are eligible for additional support, possibly reaching up to 520 contracts, upon submission of relevant documentation. Any business related to the Seoul City Standard Contract can apply, provided all branches are registered within Seoul.

Expert Outlook: Fostering Transparency and Fairness

The move towards electronic contracts is seen as a crucial step in promoting fairness and transparency within Seoul’s rapidly growing gig economy. As the number of freelancers continues to rise, estimated to be over 1.7 million in South Korea according to recent reports, the need for clear and enforceable contracts becomes increasingly crucial.

We expect that the electronics of the standard contract will increase the transparency and fairness of the contract,and will establish a foundation for workers to clearly recognize and protect their rights.

Song Ho-jae, Head of the Seoul Labor and Labor Bureau

This initiative aligns with global trends towards greater worker protection in the gig economy. For example, the European Union is currently considering legislation to improve the rights of platform workers, highlighting the growing international recognition of the need for stronger legal frameworks.