Cash handouts exclude migrant workers, prompting debate on fairness

A sign informs shoppers that government cash handouts are accepted at a market in eastern Seoul’s Cheongnyangni-dong, Aug. 3. Yonhap

The government's cash handouts to boost domestic consumption have reached nearly every Korean citizen and many long-term foreign residents, but not migrant workers, whose labor remains essential to keeping local economies afloat, especially in rural areas.

As Korea’s foreign population approaches 3 million and the government promotes its multicultural identity, critics argue that migrants remain excluded from benefits and subsidies, weakening efforts at social integration and inclusion.

As of Aug. 5, about 93.6 percent of the population — some 47.3 million residents — had received the government cash handout coupons.

Non-Korean citizens are in principle excluded from the initiative, but exceptions were made for those with permanent residency, marriage immigrants and recognized refugees who are covered by the state health insurance system.

Although the program makes limited exceptions for some foreign nationals, its narrow scope leaves out many migrant workers who pay taxes, sustain local economies and face the same strain from the ongoing economic crisis.

"Foreign nationals, especially migrant workers, fulfill their duties by paying taxes and contributing to local economies through consumption, yet they are consistently excluded from these benefits, leaving them to struggle," said Choi Jeong-gyu, an attorney at Wongok Law Firm who represents migrants’ rights.

On July 23, migrant rights groups across the country filed a petition with the National Human Rights Commission of Korea (NHRCK), arguing that the exclusion of most migrants from the cash handouts program amounts to irrational discrimination and violates their human rights.

They argued that the government should guarantee migrants a fair chance to recover from the financial hardships shared by all residents. They noted that despite contributing through work and consumption, migrant laborers are among the most vulnerable members of Korean society, often working low-paying, high-risk jobs with long hours.

"It may be seen as discrimination, but the government can argue otherwise by pointing to its stated criteria — extending cash handouts only to foreigners with a certain level of residency status," said Seol Dong-hoon, a sociology professor at Jeonbuk National University.

"Since the NHRCK’s role is limited to making recommendations, petitions are unlikely to bring major change."

Migrants stage a rally at Seoul Station Plaza in Yongsan District on the International Day for the Elimination of Racial Discrimination, Feb. 17, 2024. Korea Times photo by Choi Joo-yeon

A record 2.73 million foreign nationals lived in Korea as of June, according to data from the Ministry of Justice. Last year, they accounted for 5.2 percent of the total population, the threshold that the OECD uses to define a multicultural society. The population is growing rapidly, with more settling long term. In some rural regions, foreign residents now make up more than 10 percent of the population.

However, this is not the first time debate has flared over whether migrants should be included in government welfare programs.

Choi noted that most initiatives extend to permanent residents and marriage migrants, but leave out migrant workers.

"These actions send a message that migrants are not recognized as full members of society — a perception that can hinder social integration," he said.

During the COVID-19 pandemic, Korea faced a similar controversy over the exclusion of migrants from emergency relief funds. In May 2020, the NHRCK recommended that the Seoul Metropolitan Government and Gyeonggi Province revise their policies to include foreign residents.

President Lee Jae Myung, who was governor of Geyonggi Province at the time, responded by extending the payments to all registered foreign nationals in the province, acknowledging migrant workers as a key contributor to the local economy.

"This isn’t just about a one-time cash handout," Choi said. "It’s about the government showing the public how essential migrant workers are to our society."