Foreigners Make Up 0.8% of Labor Market
By Lee Hyo-sik
Staff Reporter
South Korea is one of the least open nations to foreign workers as its restrictive immigration policies and hiring system make it difficult for non-Koreans to enter the labor market here.
According to the Organization for Economic Cooperation and Development (OECD) Sunday, the number of foreign workers legally residing in the country totaled 198,000 in 2005, accounting for only 0.8 percent of the entire domestic workforce.
It is far lower than the OECD average of 8.6 percent and the second lowest among member economies. Japan, the world's second largest economy, had foreign employees account for only 0.3 percent of its labor force.
Luxembourg topped the list as foreigners make up 45.2 percent of its workforce, followed by Switzerland with 22.2 percent and Spain with 11.1 percent.
European countries have higher foreign worker ratios thanks to their close proximity to one another and freer movements of laborers among EU members.
But South Korea lags far behind its OECD counterparts in the use of foreign workers as its strict employment system is making it hard for non-Koreans to get a job here even though many people from China and Southeast Asian nations want to come to work in the world's 13th largest economy.
Many foreigners want to extend their visas to work longer here, but it is almost impossible to do so, creating a large number of illegal aliens. If unlawful foreign workers are included, the number of non-Korean employees is estimated to go beyond 400,000.
Additionally, the nation's close door immigration policies have prevented an influx of foreigners. For instance, Ireland opened its door wide open to people from the European Continent in a bid to revitalize its economy. Along with people, a large amount of money has flowed into its economy, fueling investment, generating jobs and spurring growth.
Also, Hong Kong is eying to attract talented workers from Asian nations to jumpstart its economy. But Korea remains largely closed even though it is widely expected to suffer from a labor shortage in 10 years time amid a rapid aging population and low birthrate.
Samsung Economic Research Institute said in a recent report that Korea's economically productive population, those aged 15-65, will peak in 2015 and then decline afterward, adding Korea should bring in foreign workers to achieve sustainable economic growth.
To do so, the government should ease immigration rules to make it easier for non-Koreans to stay for a longer period, as well as change the laws to better protect their human rights, the institute suggested.