Visa rules hold back Korean exporters from hiring more white-collar foreign workers

Foreign jobseekers write their resumes during a job fair at Kyungsung University in Busan in September 2024. Newsis

Nearly half of small- and medium-sized exporters in Korea have shown interest in hiring foreign nationals for white-collar jobs amid the country's declining population and young jobseekers' preference for large companies.

However, Korea's current visa system has been cited as a major obstacle to bringing more foreign professionals on board.

The Korea International Trade Association (KITA) said Wednesday that a recent survey of 659 small- and medium-sized exporters showed 49.5 percent of respondents plan to hire foreign nationals for white-collar roles within the next three years.

Additionally, 27 percent said they have already hired foreign nationals for such positions, giving them an average satisfaction score of 3.8 out of 5.

Among companies that have employed foreign white-collar workers, 39.4 percent cited the employees' ability to analyze overseas markets as the primary reason for hiring them, while 20.6 percent pointed to their language skills. Only 12.7 percent said they hired foreign workers to cut costs.

Under current law, employers must ensure that E-7-1 visa holders receive a base wage equivalent to 80 percent of the previous year's gross national income per capita. As a result, E-7-1 visa holders — classified as professionals — accounted for just 18.5 percent of all foreign white-collar workers.

In contrast, holders of F visas — granted to residents, family members, ethnic Koreans and spouses of Korean nationals — made up 42.1 percent of foreign white-collar workers, as they are not subject to the same wage requirement.

Although D visa holders, including international students and jobseekers, are also exempt from the regulation, they made up just 29.7 percent of the group, largely due to challenges in securing long-term contracts.

Kim Kkot-byul, a KITA researcher who analyzed the survey, recommended that the government allow companies to hire E-7-2 visa holders for white-collar positions. The E-7-2 visa is designated for semi-professional workers who can be employed at the statutory minimum wage.

"The government should ease the burden of paying high wages by categorizing sales workers and IT developers as semi-professionals," Kim said. "Executive-level employees, however, should continue to be classified as professionals so that the strict wage regulation can prevent Korean workers from losing their jobs."