[South Korea] Easing of visa restrictions for skilled expat workers

South Korea’s government will ease visa restrictions for foreign workers in R&D and new industries such as AI to attract skilled expatriates, Human Resources Online reports.

Additionally, the government will create what it calls a “digital nomad visa” allowing skilled foreign IT workers to remain in South Korea even if they are not employed by organisations based in the country. This according to original reporting in The Korea Times.

Prime Minister Chung Sye-kyun finalised the initiative during a foreigners’ policy committee on March 31. The move is intended to address a decrease in South Korea’s population - exacerbated by an ageing population - leading to an anticipated shortfall in the country’s workforce.

The government will reportedly also remove limits on the number of expats permitted to be employed by companies in new sectors like AI and bioscience, to lower the barrier to foreigners’ employment in local organisations.

The new visa - which will also be issued to applicants not working for companies based in South Korea - will enable people to remain in the country while working remotely, in line with a growing post-COVID global trend.

American Chamber of Commerce (AMCHAM) Board of Governors Chairman, Jeffery Jones, said the government’s moves to more actively attract skilled foreign professionals would help boost the country's economy. However, he added that one thing remaining unclear in the latest measures was the adjustment of tax policies for foreign workers.

“South Korea tends to impose heavier taxes on foreign workers, compared to Singapore and Hong Kong. To attract more skilled foreign professionals, tax benefits should be enhanced as well,” Mr Jones said. (Quote via original reporting)

The government will also allow foreign workers to extend their stay by up to one year if it is impractical for them to return to their home countries due to outbreaks of infectious diseases or natural disasters.

Another issue of concern is the concentration of South Korea’s workforce. Two-thirds (66 per cent) of foreign nationals work in Seoul, making it more difficult for local governments to attract foreign workers. To deal with this issue, the government intends to unveil incentives to help expats settle in areas outside of Seoul.

The measures come on the heels of a significant shift in South Korea’s population. According to the latest census figures released by the Ministry of Interior and Safety, the country’s population fell year-on-year for the first time in recorded history in 2020 with deaths surpassing births.  

South Korea’s government will ease visa restrictions for foreign workers in R&D and new industries such as AI to attract skilled expatriates, Human Resources Online reports.

Additionally, the government will create what it calls a “digital nomad visa” allowing skilled foreign IT workers to remain in South Korea even if they are not employed by organisations based in the country. This according to original reporting in The Korea Times.

Prime Minister Chung Sye-kyun finalised the initiative during a foreigners’ policy committee on March 31. The move is intended to address a decrease in South Korea’s population - exacerbated by an ageing population - leading to an anticipated shortfall in the country’s workforce.

The government will reportedly also remove limits on the number of expats permitted to be employed by companies in new sectors like AI and bioscience, to lower the barrier to foreigners’ employment in local organisations.

The new visa - which will also be issued to applicants not working for companies based in South Korea - will enable people to remain in the country while working remotely, in line with a growing post-COVID global trend.

American Chamber of Commerce (AMCHAM) Board of Governors Chairman, Jeffery Jones, said the government’s moves to more actively attract skilled foreign professionals would help boost the country's economy. However, he added that one thing remaining unclear in the latest measures was the adjustment of tax policies for foreign workers.

“South Korea tends to impose heavier taxes on foreign workers, compared to Singapore and Hong Kong. To attract more skilled foreign professionals, tax benefits should be enhanced as well,” Mr Jones said. (Quote via original reporting)

The government will also allow foreign workers to extend their stay by up to one year if it is impractical for them to return to their home countries due to outbreaks of infectious diseases or natural disasters.

Another issue of concern is the concentration of South Korea’s workforce. Two-thirds (66 per cent) of foreign nationals work in Seoul, making it more difficult for local governments to attract foreign workers. To deal with this issue, the government intends to unveil incentives to help expats settle in areas outside of Seoul.

The measures come on the heels of a significant shift in South Korea’s population. According to the latest census figures released by the Ministry of Interior and Safety, the country’s population fell year-on-year for the first time in recorded history in 2020 with deaths surpassing births.