1 in 2 Korean firms want more foreign workers: survey

Foreign workers pour molten metal into molds at a factory in Gyeonggi Province in this November 2022 file photo. Korea Times

By Kim Hyun-bin

Nearly one out of every two companies in Korea are calling on the government to increase the quota of foreign workers they can hire as many small firms struggle to fill their workforce, according to a survey by the Korea Chamber of Commerce & Industry (KCCI), Monday.

KCCI surveyed 502 companies employing non-Korean workers and found that 46.8 percent want the current level of 110,000 workers introduced this year to increase in 2024. About 43.2 percent preferred to maintain the current level, while only 9.2 percent suggested reducing it.

The government previously raised the quota of non-professional foreign workers holding E-9 visas to 110,000 this year from 69,000 in 2022, to address a labor shortage caused by the COVID-19 pandemic. E-9 visas, which are issued to foreigners working in the manufacturing, construction and agricultural sectors, are valid for four years and 10 months.

The Foreign Workers Policy Committee under the Prime Minister's Office determines the foreign workforce quota annually and reviews and approves plans related to foreign workers.

More than half of the surveyed companies (57.2 percent) reported a shortage of non-professional foreign workers, mainly due to additional vacancies caused by domestic workers quitting.

The surveyed companies also complained about legal limitations to hiring foreign workers and difficulties in finding suitable foreign laborers. Companies that experienced labor shortages said they need an average of 6.1 additional foreign workers, while they currently employ an average of 9.8, accounting for 12.7 percent of their workforce.

“There is a need for the continued recruitment of foreign workers to address labor shortages among member companies. Despite the entry of 110,000 foreign workers this year, the aging domestic workforce and an aversion to manual labor by younger Koreans pose ongoing workforce shortage challenges,” Pocheon Chamber of Commerce foreign worker specialist Lee Sang-taek said.

“There needs to be a sustainable foreign workforce recruitment plan at least at this year's scale over the coming years to address the labor shortage at SMEs,” he added.

However, companies hiring foreign workers also face difficulties, particularly when such employees demand the termination of their labor contracts in order to change companies. The law permits foreign workers to change workplaces only if the employer terminates the contract or engages in illegal or dishonest actions. However, that provision is frequently abused.

Over half of the surveyed companies (52.4 percent) experienced demands from foreign workers to terminate their labor contracts for the purpose of switching jobs.

Only 11.4 percent of those cases resulted in a smooth resolution with employees returning to regular duties after reaching an agreement. In September, the government plans to implement changes to limit the movement of foreign workers to specific regions and industries to address this issue.