Korea’s foreign labor shortage intact despite quota increase for E-9 visas

[Image source: Gettyimagesbank]

South Korean small- and mid-size enterprises (SMEs) that are struggling to attract skilled workers are turning to migrant laborers and even illegal aliens as they urgently need workforce for day-to-day operations.

According to industry figures, Korea’s quota for foreign workers with non-professional employment (E-9) visas rose to 110,000 this year, up 60 percent from 69,000 in the previous year.

A manufacturing company, for example, with up to 10 Korean workers is not able to hire up to 9 foreign workers, up from 5~7. The quota increases to 15 foreign workers for bigger companies with up to 50 Korean workers.

SMEs, however, are not happy with the visa quota system as it isn’t easing their suffering. They, instead, are calling on the government to remove the quota system.

“The government has remained ignorant of the reality,” said an industry source who asked to be unnamed.

“Plenty of SMEs face a reality that they can’t survive without enough supply of foreign workers, but the latest measure isn’t enough to plug the shortage of labor force.”

According to a survey conducted by the Korea Federation of SMEs on 1,000 companies, more than half of the respondents said they suffer a labor shortage despite the government’s increase in the visa quota.

The unresolved shortage in the workforce at the companies is leading to unfair and illicit labor practices.

An unnamed executive officer that operates a construction materials plant in the Seoul area said that he split the company into several entities to hire more workers.

“Under the current quota, I am allowed to hire only nine foreigners as there are less than 10 Koreans working at the firm,” the CEO said.

The quota under the E-9 visa is also serving as a barrier for local businesses to hire more skilled foreigners.

Another executive officer from an auto repair company said that he had to use only the E-9 visa to hire foreigners because the auto repair industry is classified as low-skilled services in the visa category.

Industry insiders said that bold action, such as the withdrawal of the quota limit, is needed.

“Foreign laborers that are faithful and have worked at a company for long years should be allowed to settle in Korea,” said an unnamed industry official. “The smooth supply of low-skilled workers will lead to more quality jobs in office and management sectors for young Koreans.”