[Factories Are Aging] Even Finding Foreign Workers Is 'Like Picking Stars'... 36,000 Workforce Shortage

20,144,433 Stayed in January... 17% Decrease Compared to Same Month Last Year
47,000 Quota Last Year... 4,350 Arrivals
Industry Urges Measures Such as Special Exceptions for Essential Workers

A factory in the Siheung district of Gwangmyeong, Gyeonggi Province. The photo is unrelated to specific expressions in the article.
Photo by Asia Economy DB

[Asia Economy Reporter Junhyung Lee] The supply and demand situation for foreign workers has also worsened due to COVID-19. The industry says that measures such as applying special regulations at least for essential personnel are necessary.

The double hardship arises as young people avoid working on-site at small and medium-sized enterprises (SMEs), compounded by the shortage of foreign workers. According to the Ministry of Justice, the number of foreigners residing in Korea as of January was 2,014,433, a 17% (412,000) decrease compared to the same period last year (2,426,433). This is due to restrictions on overseas entry and exit caused by COVID-19.

Last year, the quota for foreign workers in manufacturing was 40,700, but the actual number who entered was only 4,350. According to a survey by the Korea Federation of SMEs, 72.3% of SMEs responded that foreign workers cannot be replaced by domestic workers, but in reality, a manpower gap of 36,350 has occurred on-site.

The number of foreigners holding non-professional employment (E9) and visiting employment (H2) visas decreased by 16.7% (46,757) and 35.6% (81,625), respectively, compared to the same month last year as of January. The E9 and H2 visas are mainly used by foreign workers. The basic stay period is three years and can be extended up to one year and ten months. Foreigners who have worked diligently at the same company for four years and ten months can re-enter Korea after leaving the country for three months, but the SME sector explains that a production line gap is inevitable during that period.

The fact that many of the personnel playing the role of ‘young blood’ on-site are foreign workers further highlights the seriousness of the problem. When foreigners leave the factories, those left behind are mostly elderly workers in their 50s and 60s who are close to retirement. According to Statistics Korea, about half (45.7%) of foreigners residing in Korea last year with E9 visas were young people aged 15 to 29. This was followed by those in their 30s (43.4%) and 40s (9.4%). Those in their 50s and 60s accounted for only 3.5%. Since skills do not accumulate, the field chronically suffers from a shortage of skilled technicians.

Experts say that flexible responses such as extending visas for essential foreign workers and continuously discovering various programs to promote employment in small and medium manufacturing industries for graduates of specialized high schools and vocational high schools are necessary.

No Minseon, head of the Future Strategy Research Group at the Korea Small Business Institute, said, “Since SMEs heavily depend on foreign workers, there is a high possibility of business damage,” and added, “It is necessary to apply special regulations such as visa extensions for essential foreign personnel.” No suggested, “Efforts to replace foreign workers with domestic workers are ultimately the direction to go,” and “Above all, various programs to promote employment in small and medium manufacturing industries for graduates of specialized and vocational high schools must be established.”