'What to Do About the Birth Rate'... No 'Magic Solution' for Foreign Domestic Worker Policies [why&next]

Despite Serious Low Birthrate, 'Side Effect' Concerns Slow Progress
Numerous Issues to Resolve... Government Lacks a Clear Blueprint

The government, which is promoting the introduction of foreign domestic workers, is facing deep concerns. To have a meaningful effect on reversing the birth rate decline, utilization rates must be increased, but no clear solution has been found. Boldly implementing the policy raises concerns about side effects, while a cautious, gradual approach is likely to make it difficult to achieve visible results. Relevant ministries are consistently taking a passive stance of "let's observe the pilot project."

The government's motivation for bringing in foreign domestic workers from countries like the Philippines stems from the urgent issue of low birth rates. South Korea's total fertility rate was 0.65 in the fourth quarter of last year and 0.72 for the entire year, the lowest since statistics began. When the burden of housework and childcare on women was cited as a cause, President Yoon Suk-yeol ordered a review of introducing foreign domestic helpers in May last year. The Ministry of Employment and Labor immediately announced plans to add "household and care services" to the non-professional employment (E-9) visa. Seoul City is currently negotiating with the Philippine government to jointly conduct a pilot project with the Ministry of Employment and Labor.

Despite Severe Low Birth Rates, Progress Hindered by Concerns Over Side Effects

The government believes that introducing foreign domestic workers can raise the birth rate. The basis for this is that other countries with similar systems have seen meaningful effects. Hong Kong is a representative example. Professor Suzuki Aya of the International Studies Department at the University of Tokyo analyzed Hong Kong population data last March and found that households employing foreign domestic workers increased their number of children from 0.34 to 0.60. Professor Liat Raz Eurovich of the Hebrew University also analyzed Germany in the 1990s and concluded that "women who outsourced housework had more second children."

Especially since the number of domestic domestic workers is decreasing, the government’s position is that this gap must be filled by foreigners. According to Statistics Korea, the number of housework and childcare helpers decreased by 79,000 (42.4%) from 186,000 in 2017 to 107,000 in 2022. Moreover, due to aging, over 90% of workers are aged 50 or older. As the mismatch between supply and demand worsens, it has become even harder to find people to care for children.

The biggest challenge is how to encourage a large number of citizens to use the service. While households employing foreign domestic workers show effects, if overall utilization rates remain low, the impact on the national birth rate will be minimal. In fact, Singapore introduced the system in 1978, but its total fertility rate fell from 1.9 at that time to 1.04 in 2022. Hong Kong also allowed foreign domestic workers starting in 1973, but the number of newborns dropped from about 83,000 to 32,500 in 2022. This is the lowest level since 1961, indicating that the overall decline in birth rates was not prevented.

There are concerns that Korea might follow a similar path if the system is introduced blindly. This is because most parents prefer to care for their children themselves. The Korea Institute for Health and Social Affairs conducted a "National Work-Life Balance Survey" in 2022, asking working parents whether it was more important to secure working hours or childcare time to raise children. Many working parents preferred adjusting working hours to care for their children directly rather than using care services. This is why Jang Ju-young, a researcher at the Migration Policy Institute, said that "the policy direction of introducing foreign domestic workers does not align with public demand."

The government has not been able to fully implement the policy despite the severe low birth rate due to concerns about side effects. Public attitudes toward foreign domestic workers need to change, but speeding up policy implementation could only increase opposition. A government official explained, "Hong Kong and Singapore are English-speaking city-states, but Korea is a country that uses its own language, so the environment is completely different," adding, "If foreign domestic workers are brought in blindly, there is a risk of illegal stays or unexpected crimes, so various issues must be considered."

Numerous Issues to Resolve... Government Lacks a Clear Blueprint

The cost, which can reach millions of won, is also a factor lowering policy utilization rates. Currently, live-in Korean domestic managers cost between 3.5 million and 4.5 million won, and domestic managers of Chinese descent cost between 2.5 million and 3.5 million won. Even applying this year's minimum wage, the cost reaches 2.06 million won. Considering that the average monthly salary of Koreans in 2022 was 3.51 million won, one income of a dual-income couple would have to be spent entirely. The same applies to hiring commuting domestic workers. Typically, 1.5 times the minimum wage must be paid, which in Seoul means paying between 15,000 and 20,000 won per hour to employ them. For this reason, in Hong Kong and Singapore, demand for domestic workers increased only when costs dropped to about 30-40% of median income.

To reduce costs in Korea, differential wages would need to be applied, but this is practically impossible. The International Labour Organization (ILO) prohibits employment discrimination based on race, skin color, or country of origin under Convention No. 111. Moreover, since 2011, the ILO has adopted the "Convention on Decent Work for Domestic Workers." Korea voted in favor, so introducing differential wages could spark controversy over violating international rules. Some argue that providing lodging and meals as support and reflecting these in wages to reduce actual monthly pay could circumvent the convention, but this could face opposition from labor groups.

Realistically, the government or local governments could partially subsidize costs, but this would require astronomical budgets. For example, Seoul City supported household services for pregnant women below 150% of median income and dual-income families with multiple children last year. Even with strict usage conditions?13,000 households, six uses per household (four hours each)?the cost was 3.2 billion won. Considering various support facilities, costs increase further. Seoul City plans to cover accommodation and transportation costs for foreign domestic workers during the pilot project. With about 100 foreign domestic workers, an additional supplementary budget of 150 million won will be invested.

The government has yet to find a clear solution. After the pilot project ends, there is no blueprint for how to introduce foreign domestic workers or how much government support should be provided. A Ministry of Employment and Labor official said, "No measures have been considered to reduce the burden of using foreign domestic workers," adding, "Government-level support is not yet included in the project."