[South Korea] Foreign workers help offset labour shortfall yet problems persist

South Korea has become increasingly reliant on foreign labour as its working-age population diminishes. However, its treatment of foreign workers continues to raise concerns and criticism, FT reports.

South Korea’s demographic crisis is among the most severe in the world; it had had the world’s lowest fertility rate as of 2023 according to the World Bank, the most recent year for which complete data is available, and the government projects that the workforce will halve over the next 40 years. 

Policymakers are reportedly under pressure to maintain economic growth in a country with strict immigration laws and historic prejudices about foreign residents. To cope with the labour shortfall, South Korea tripled its quota of temporary visas for low-skilled workers to a record 165,000 in 2024, from 56,000 in 2020. 

“Our population is decreasing rapidly, aggravating the problem of workforce mismatch, so using more foreign labour will be unavoidable,” Han Eun-sook - director of the foreign workforce division at the labour ministry - said. 

The majority of foreign workers undertake minimum wage “3D” (dirty, difficult and dangerous) jobs that have been rejected by the nation’s native workers as the country’s economy has matured. 

“Migrant workers have mostly been employed by the manufacturing, farming and fisheries sectors so far, but demand for foreign labour will increase across the board,” Han said.  

Reforms enacted in 2004 that eliminated intermediaries and costly broker fees have reportedly made South Korea an attractive destination for migrant workers. The new system - open to nationals of 15 Asian countries - also guarantees the same rights and protections as native Koreans, including pensions and health insurance. 

Foreign workers are eligible for just two stays of four years and 10 months, with no legal pathway to permanent residence. There are also limits on bringing over family members, and workers need their employer’s consent to extend their contracts or change jobs. Foreign workers on E-9 visas, which cover “non-professional” workers, also disproportionately suffer discrimination and abuse. 

According to a report by South Korea’s human rights commission published in 2024, foreign workers are more than three times as likely to die in industrial accidents as their South Korean counterparts. 

A government survey in 2024 of 196 businesses employing migrant workers reportedly revealed 846 cases of labour law violations, including discrimination, overdue wages, long working hours and even instances of assault.  

Source: FT

(Quotes via original reporting)

South Korea has become increasingly reliant on foreign labour as its working-age population diminishes. However, its treatment of foreign workers continues to raise concerns and criticism, FT reports.

South Korea’s demographic crisis is among the most severe in the world; it had had the world’s lowest fertility rate as of 2023 according to the World Bank, the most recent year for which complete data is available, and the government projects that the workforce will halve over the next 40 years. 

Policymakers are reportedly under pressure to maintain economic growth in a country with strict immigration laws and historic prejudices about foreign residents. To cope with the labour shortfall, South Korea tripled its quota of temporary visas for low-skilled workers to a record 165,000 in 2024, from 56,000 in 2020. 

“Our population is decreasing rapidly, aggravating the problem of workforce mismatch, so using more foreign labour will be unavoidable,” Han Eun-sook - director of the foreign workforce division at the labour ministry - said. 

The majority of foreign workers undertake minimum wage “3D” (dirty, difficult and dangerous) jobs that have been rejected by the nation’s native workers as the country’s economy has matured. 

“Migrant workers have mostly been employed by the manufacturing, farming and fisheries sectors so far, but demand for foreign labour will increase across the board,” Han said.  

Reforms enacted in 2004 that eliminated intermediaries and costly broker fees have reportedly made South Korea an attractive destination for migrant workers. The new system - open to nationals of 15 Asian countries - also guarantees the same rights and protections as native Koreans, including pensions and health insurance. 

Foreign workers are eligible for just two stays of four years and 10 months, with no legal pathway to permanent residence. There are also limits on bringing over family members, and workers need their employer’s consent to extend their contracts or change jobs. Foreign workers on E-9 visas, which cover “non-professional” workers, also disproportionately suffer discrimination and abuse. 

According to a report by South Korea’s human rights commission published in 2024, foreign workers are more than three times as likely to die in industrial accidents as their South Korean counterparts. 

A government survey in 2024 of 196 businesses employing migrant workers reportedly revealed 846 cases of labour law violations, including discrimination, overdue wages, long working hours and even instances of assault.  

Source: FT

(Quotes via original reporting)