Reform Party candidate pledges separate minimum wage system for foreign workers

Lee Jun-seok, the presidential candidate of the minor conservative Reform Party, listens to a worker at Kumho P&B Chemicals plant in the national industral park in Yeosu, South Jeolla Province, Monday. Courtesy of Reform Party

Lee Jun-seok, the presidential candidate of the minor conservative Reform Party, has vowed to introduce a separate minimum wage system for foreign workers in Korea as he seeks to bring back more manufacturing jobs from overseas.

According to the list of his top 10 policy priorities unveiled ahead of the June 3 election, Lee, 40, aims to bring back the production of goods by offering more affordable labor for Korean manufacturers currently operating in countries like China and Vietnam, where labor costs are lower.

If those companies decide to relocate their main manufacturing facilities to one of the state-designated national industrial parks in Ulsan, Yeosu, Changwon, Gumi and other areas, they would be exempt from the obligation of paying the national minimum wage to workers for up to 10 years.

“The goal of this policy is to motivate companies to return here by offering a separate wage system for foreign workers and easing other regulations so that companies can maintain the same level of labor expenses,” Lee said in his policy list, which became available Monday on the National Election Commission website.

The idea of introducing a separate minimum wage system for non-Korean workers began to take shape when the Seoul city government launched a program to employ foreign nannies. This initiative aimed to help parents, especially double-income ones, raise children at a lower cost while also hoping to address Korea’s low birthrate.

However, lawmakers were unable to turn the idea into an actual policy due to opposition from Kim Moon-soo, who served as labor minister before becoming the presidential candidate for the main conservative People Power Party. While in office, he rejected the proposal, arguing that it violated the anti-discrimination principle of the International Labor Organization.

Speaking to reporters at the national industrial park in Yeosu, South Jeolla Province, Lee said he would reinvigorate the country’s manufacturing sector and described himself as the best candidate for the job.

“The Yeosu petrochemical complex has recently experienced a significant decline in profit margins and sales volume due to volume competition and dumping from China,” he said. “It will take diplomatic acumen, a good understanding of trade and the knowledge of the whole industry to solve this problem.”

As part of the reshoring plan, Lee also pledged to introduce a new visa that would allow foreign workers hired by Korean employers in other countries to move to Korea quickly. This would help companies resume manufacturing operations — if they choose to — by enabling them to bring many of the same workers here without significant delay.

Lee promised to finalize the details of the policy within the first three months of his presidency if he wins, and to begin implementing the full reshoring program within the first year.

In line with this policy, Lee also said the current minimum wage system, which is set annually after a review by the Minimum Wage Commission, should be reformed to unlock the full potential of the economy.

He added that, if elected president, he would push for legislation allowing local offices — instead of a commission under the Ministry of Employment and Labor — to independently determine their minimum wage levels.