Foreign workers in manufacturing, construction hit record high in 2023: Justice Ministry

Economy

Foreign workers in manufacturing, construction hit record high in 2023: Justice Ministry

Published: 14 Aug. 2024, 15:09 Updated: 14 Aug. 2024, 17:18

Filipino nannies arrive at Incheon International Airport on Aug. 6. [YONHAP]

Foreign nationals working nonprofessional jobs in Korea reached an all-time high last year, the Ministry of Justice said Tuesday, a stark contrast to the pandemic-induced decline seen in 2020 and 2021.

Workers holding E-9 visas, which enable employment in sectors such as manufacturing, construction and agriculture, numbered a record 168,755 in 2023, representing an on-year increase of 25 percent, according to the ministry's data.

The once Chinese-dominated foreign work force in Korea is undergoing a swift paradigm shift. As industries grapple with labor shortages, there has been a surge in the number of workers from Nepal, Laos and other Asian nations.

Shipbuilder Hanwha Ocean's shipyard in Geoje, South Gyeongsang, is one example of Korea's evolving labor landscape. With nearly 3,700 foreign workers, predominantly from Nepal, Thailand and Vietnam, the facility highlights the nation's increasing reliance on foreign labor.

The number of E-9 visa holders had plummeted during the COVID-19 pandemic, reaching a low of 16,732 in 2021 — but it rebounded strongly in 2022, nearly reaching pre-pandemic levels.

Industry experts attribute this shift to employer preferences and the government's work permit quota system, which allows companies that cannot hire domestic workers to instead employ foreign workers. The system has now expanded to include service sectors such as hotels and restaurant kitchens in addition to the existing manufacturing, construction, agriculture, livestock and fishery sectors, which has diversified the country's foreign work force.

As the overall number of foreign workers in Korea has increased, the proportion of Chinese workers has decreased while the proportion of workers from other Asian countries has risen.

“There is a looming labor shortage due to a declining working-age population,” said Professor Seol Dong-hoon of Jeonbuk National University. “Careful monitoring and strategic approaches to immigration policy are needed.”

BY IM SOUNG-BIN [yoon.seungjin@joongang.co.kr]