[2024 Economic Policy] Further Loosening of Foreign Workforce Restrictions... Over 260,000 Inflows Expected This Year

The government has decided to comprehensively increase foreign labor to respond to the decline in the working-age population caused by low birth rates and aging.

According to the government's '2024 Economic Policy Direction' announced on the 4th, the scale of foreign labor inflow will be significantly expanded by about 100,000 people compared to the previous year, starting this year, in line with on-site demand. Under the Yoon Seok-yeol administration's policy to flexibly manage foreign labor according to market changes, the number of foreign workers, which was about 172,000 last year, has been raised by approximately 51% to over 260,000 this year.

In April last year, the full meeting of the Special Committee on Population Crisis was held at the National Assembly, chaired by Chairman Kim Young-sun. Photo by Kim Hyun-min kimhyun81@

In particular, to supply industrial manpower that has been suffering from chronic labor shortages, the quota for issuing foreign skilled workers (E7-4 visa) will be nearly tripled from 12,000 last year to 35,000 this year. For foreign non-professional workers (E-9 visa) needed in manufacturing and construction sites, the number will increase from 120,000 last year to 165,000 this year, marking the largest scale ever.

The inflow of E-9 visa holders, which was at the level of 50,000 until 2022, has been rapidly increasing since the current administration took office. The government allows small and medium-sized enterprises experiencing labor shortages to hire non-professional workers from Southeast Asia, such as Vietnam. Under this system called the Employment Permit System, these workers enter the country with government approval (E-7 visa).

Incentives to attract not only simple labor but also talented individuals will also be expanded. To attract talent in advanced fields, the government will expand the selection of science and engineering students for government-sponsored scholarship programs and prepare improvement plans for permanent residency and naturalization systems for outstanding talents within the first half of this year. The Ministry of Economy and Finance explained, "The scope of employment allowed for foreign students, which was limited to office and professional fields, will be expanded to industrial sectors facing severe labor shortages, and visa regulations for foreign students will also be eased."

The Yoon Seok-yeol administration and economic leaders have emphasized the necessity of expanding foreign labor inflow as a solution to the population crisis caused by the historically low birth rate and rapid aging. The gist is to actively promote immigration policies in Korea, similar to those that have been a source of strength for the United States as a superpower.

To alleviate the growing fiscal pressure caused by rapid aging, reforms of the National Pension and Health Insurance will also be actively pursued. To prepare specific reform plans, the 'National Pension Future Reform Advisory Group' and the 'Fiscal Projection Working Group' will be operated starting this month.

The '2nd Comprehensive National Health Insurance Plan,' applicable from this year through 2028, will also be established. This includes raising the co-payment rate for excessive users of medical services to prevent indiscriminate medical shopping and improving the insurance premium assessment criteria for regional subscribers' property and automobiles.

Financial and tax support related to marriage and childbirth will also be expanded. Non-taxation will be applied to operating expenses for workplace daycare centers and delegated childcare fees, and the child tax credit for the second child will be increased from the previous 150,000 won to 200,000 won. If both parents take parental leave for more than three months, the period for receiving parental leave benefits will be extended from the existing 12 months to 18 months.

The Ministry of Economy and Finance, Ministry of Land, Infrastructure and Transport, Ministry of Health and Welfare, and other related ministries will form a task force (TF) to prepare measures to revitalize the supply of silver towns for citizens and the middle class within the first half of the year.