Korea to expand E-7-4 skilled worker visas to address workforce shortage

President Yoon Suk Yeol speaks during a government-business meeting on lifting regulatory barriers at G Valley Industrial Museum in Guro District, Seoul, Thursday. Joint Press Corps

President calls for 'flexible labor supply' through eased migrant worker rules

By Nam Hyun-woo

President Yoon Suk Yeol on Thursday called for swift deregulation around migrant workers in order to enable a more flexible labor supply to address the country's workforce shortage.

To this end, the country will expand the quota for E-7-4 skilled worker visas to 35,000 by the end of this year from last year's 2,000, and increase the limits on the number of foreign employees that a company can hire.

“When there are people willing to work and businesses in need of their labor, it is essential to swiftly rectify any impractical regulations that stand in the way,” Yoon said during a meeting on lifting regulatory barriers.

“This becomes even more imperative given the pressing demographic crisis. To effectively tackle the challenges posed by the changing population dynamics, it's crucial to ensure a flexible labor supply that aligns with the workforce demands.”

The government held a meeting with businesses to collect opinions and explore ideas to lift what Yoon calls “killer regulations.”

As part of those efforts, the government will increase the quota of E-7-4 visas to address workforce shortages stemming from the low birthrate and population decreases outside of Seoul.

The number of E-7-4 visa recipients has been increasing consistently from 1,000 in 2020 to 1,250 in 2021 to 2,000 in 2022 and to 5,000 this year, but there has been growing demand for expansion.

The increased quota will be available for foreign workers who have been staying in Korea for four years or longer with E-9, E-10 or H-2 working visas. Also, their annual salary should exceed 26 million won ($19,700) and they must have a certain level of Korean language ability. Detailed requirements are available at hikorea.go.kr.

Those who received an E-9 visa can work in Korea for 10 straight years without leaving and revisiting the country. So far, E-9 visa holders had to leave and return to Korea at least once after working 4 years and 10 months.

The limits on the number of foreign employees available per company will also be increased. For example, a manufacturing company can hire up to 80 foreign workers, up from 40, and an agricultural firm can hire up to 50, up from 25.

“We must remember that speed is the top priority in deregulation efforts,” Yoon said. “For companies doing business, the most important thing is time. Whether something is going to happen or not, what matters the most is that a swift conclusion by the government (occurs).”

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Along with lifting regulations on migrant workers, Yoon and the participants of the meeting discussed ways to address regulations related to the use of space at industrial complexes and the production of chemical substances.

“Along with the topics we discussed today, there are detrimental regulations that pose barriers to our economic growth and advancement and are scattered throughout our society,” Yoon said. “In this relentless economic race, we need to accelerate the pace so that businesses urgently striving to make progress can flourish.”