The Korea Herald

지나쌤

Foreign worker population grows 10%

By Korea Herald

Published : Oct. 22, 2015 - 20:52

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A survey released by the state statistical office Thursday showed the number of foreigners legally working in Korea reached 938,000 in May, up 10.1 percent from a year earlier. Their proportion of the country’s workforce increased from 3.3 percent to 3.6 percent over the period.

Separate data from the Korea Immigration Service put the number of multicultural residents in the country ― including migrant workers, foreign students and immigrant spouses ― at 1.82 million as of August, a 6.5 percent increase from a year earlier. The figure accounted for 3.5 percent of Korea’s total population of 51.47 million.

Economists say this upward trend in the number of expatriates is desirable and should be further boosted in the country with the fastest-aging population and among the lowest birthrates in the world. The proportion of working-age people ― those between the ages of 15 and 64 ― in Korea is forecast to decline from a peak of 72.9 percent in 2016 to 56 percent in 2040 and 49.7 percent in 2060.


The Korea Economic Research Institute warned in a report last year that a shrinking working-age population would result in the country’s potential growth rate ― an economy’s maximum capacity to grow without causing additional inflation ― sliding over the coming decades to sink below 1 percent in 2050.

The government’s efforts to raise the birthrate have fallen far short of turning Korea’s alarming demographic trend around, with its fertility rate ― the average number of children a woman is expected to have in her lifetime ― remaining the lowest among major developed countries in recent years.

This leaves Korea with an urgent task of accepting more immigrants to maintain and enhance its demographic vitality and growth momentum. According to estimates by KERI, the country needs to let in a total of 9.26 million immigrants by 2030 and 14.79 million by 2050 if it is to increase its potential growth rate by 1 additional percentage point.

A more immediate and specific focus is set to be put on accepting migrant workers in a way to help maximize their contribution to the Korean economy, the fourth largest in Asia. A recent package of measures designed to cope with demographic challenges suggests that government policymakers are moving to open the door wider for skilled foreign workers while restricting the inflow of unskilled migrant laborers.

According to data from the immigration office, the annual number of nonprofessional foreign workers allowed into the country increased from 479,000 in 2012 to 499,000 in 2013 and 568,000 last year, while the corresponding figures for those with expertise remained little changed at around 50,000 over the cited period. A local think tank on migration policy also estimates that replacing one-third of unskilled workers with skilled ones would result in an annual production effect worth 6.7 trillion won ($5.9 billion).

The government has implemented programs to attract more foreign talent by offering conveniences in issuing visas and giving residency to them. Such efforts, however, have not been so successful in bringing skilled foreign workers here.

Economists stress the need to offer more substantial and effective support to help them work and live in the country without difficulty.

But some experts note it is necessary to continuously accept unskilled workers at the current level in order to boost the country’s growth potential.

“Given the country’s long-term demographic trend, it is unwise to reduce the number of unskilled foreign laborers allowed to work here,” said Cho Gyeong-lyeob, senior researcher at KERI. He added measures should be worked out to nurture unskilled foreign workers into skilled manpower, noting that more than one-third have a college diploma.

Regardless of their skill level, all foreign workers have carried out a certain role needed to maintain and bolster the Korean economy, economists point out.

Many experts indicate Korea should pay the same heed to guaranteeing fair treatment to unskilled and low-skilled foreign laborers employed in manufacturing, agricultural, fisheries and construction sectors. The amount of overdue wages for foreign workers in the country increased from 24.1 billion won in 2012 to 33.9 billion won last year, with the number of affected migrant employees also rising from 9,378 to 12,021 over the same period, according to a report released by a ruling party lawmaker last month.

It is also necessary to tackle problems with illegal foreign workers, whose number now exceeds 200,000, in a more serious manner. Experts say local employers should be discouraged from hiring and treating them under substandard conditions, suggesting consideration may be given to legalizing the status of those who have worked here for a certain period without causing trouble.

Attracting more young and high-skilled immigrants is certainly desirable for the country as they could make better contributions to enhancing competitiveness and reducing welfare costs. As some experts note, however, both the Korean policymakers and public should still be reminded that such foreign talent would be more ready to come to the country when they see other expatriate workers receive due treatment for their work.

By Kim Kyung-ho (khkim@heraldcorp.com)