Oh Se-hoon and Na Kyung-won in Unison: "Foreign Domestic Worker Cost Issues Must Be Improved" (Comprehensive)

Application of 'In-House Employment' for E7 Visa Holders
Discussion on Differential Minimum Wage Application Methods

Seoul Mayor Oh Se-hoon and People Power Party lawmaker Na Kyung-won voiced a unified opinion that affordable solutions must be found regarding the issue of foreign domestic workers. Various suggestions were presented as detailed solutions, ranging from adding domestic workers to the E7 visa eligible occupations to allow direct contracts with employing households, to proposals for applying differentiated minimum wages.

Mayor Oh attended the seminar titled "What is the Problem with the Wages of Filipino Domestic Workers?" held at the National Assembly Members' Office Building on the morning of the 27th, and stated, "Even now, a week before the launch of the (foreign domestic helper) service, concerns and worries persist that the system, which was difficult to introduce, may end up being only half-baked," adding, "We need to add 'domestic worker' to the occupations eligible for the E7 visa." He believes that if foreign domestic workers receive E7 visas and are employed under a 'household employment system,' the minimum wage would not need to be applied.

On the morning of the 27th, Seoul Mayor Oh Se-hoon attended the seminar "What is the Problem with the Wages of Filipino Domestic Workers" held at the National Assembly Members' Office Building.
[Photo by Seoul City]

This statement is a response to the increased cost burden caused by the application of the same minimum wage under the foreign domestic worker system introduced by Seoul City. Filipino domestic workers, who will start work in September, are subject to the same hourly minimum wage as Koreans (9,860 KRW this year), which means they will earn 2.38 million KRW per month for full-time work of 8 hours a day. While this alleviates excessive childcare burdens, it also creates a new problem of cost burden.

Mayor Oh said, "Regarding the issue of foreign domestic workers, the Ministry of Justice has consistently taken an overly cautious and passive stance on Seoul City's proposal to add 'domestic worker' to the E7 visa eligible occupations," and criticized, "Although the Ministry of Justice said it would introduce a method to expand domestic worker activities for foreign students, graduates, and spouses of foreign workers residing in Korea, considering the imminent care crisis, this is nothing more than a temporary measure."

In her opening remarks, Lawmaker Na said, "The issue of applying minimum wage to foreign workers is a very important topic in the era of low birthrate and aging," and added, "We appreciate Seoul City for introducing Filipino domestic helpers, but the application of the same minimum wage severely limits accessibility." She also mentioned criticisms that differentiated minimum wage application violates International Labour Organization (ILO) conventions, stating, "We need to reconsider whether the ILO convention prohibits reasonable discrimination," emphasizing, "Reasonable discrimination is possible in this regard based on the criteria for applying and determining minimum wages."

Meanwhile, Professor Kim Hyun-chul of the Department of Economics and Policy Studies at the Hong Kong University of Science and Technology, who presented at the seminar, emphasized the need to recognize that the foreign domestic helper program is not only a measure against low birthrate but also an economic and care policy. Professor Kim particularly noted, "It is not desirable to apply a lower minimum wage just because they are foreigners," but added, "Wages should be paid according to productivity, and on average, the productivity of foreign workers is lower than that of domestic workers." This implies the need for a structure where, even if foreign workers' wages are initially low, they can gradually receive wages corresponding to their productivity.

He also proposed a measure to protect domestic care workers by allowing only Koreans to be employed as 'part-time' domestic workers. Foreign domestic workers would be required to live in and work full-time, while part-time work with higher hourly wages would be limited to Koreans only.