"Enduring Without Annual Leave or Severance Pay"…Factories Silencing Illegal Immigrants [Foreign Workers' Cliff]

①20th Anniversary of the Introduction of the Employment Permit System for Foreigners
High Visa Barriers... Increasing Number of Illegal Immigrants

Editor's NoteIt has been 20 years since the Employment Permit System (EPS) for foreign workers (hereinafter referred to as foreign workers) began with the arrival of 92 Filipino workers in August 2004. As of the end of last year, the number of foreign workers reached 920,000, increasing ten thousandfold over the past two decades. Considering the need to fill labor shortages in 3D industries (difficult, dangerous, and dirty jobs) that domestic workers avoid, along with the accelerating trends of low birth rates and aging population, many more foreign workers will be needed in the future. However, foreign workers face visa barriers that lead to a vicious cycle of deportation before becoming skilled workers or remaining as undocumented residents. This contrasts sharply with neighboring countries like Japan, where population decline due to low birth rates has begun, and which actively lower immigration barriers to encourage foreign workers to settle. Although a competition for foreign workers among countries is expected, South Korea has yet to establish a control tower to oversee immigration policies, resulting in a rapid increase in undocumented residents. This article examines the current status of foreign workers and immigration policies in South Korea, along with desirable policy directions for sustainable growth and securing a working-age population.

On the 6th of last month, Filipino workers participating in the pilot project for foreign domestic helpers are entering through Incheon International Airport. [Image source=Yonhap News]

Saiduru (28), a Bangladeshi national whom we met at the Immigrant Integration Center in Goyang-si, Gyeonggi-do, has been in Korea for eight years but is losing sleep over visa extension issues. He initially entered Korea with an E-9 (non-professional employment) visa under the Employment Permit System. After 4 years and 10 months, his visa expired, and he returned to his home country. Six months later, he successfully extended his E-9 visa and returned to Korea. Since then, he has reduced his sleep to improve his TOPIK (Test of Proficiency in Korean) scores and, in May this year, succeeded in obtaining an E-7 (professional) visa, which allows indefinite stay extension. However, maintaining the E-7 visa requires managing annual social integration programs and TOPIK scores, so he must attend classes at the center every weekend. He said, "I am relatively very lucky. A friend who worked at the same factory couldn't switch to an E-7 visa because he couldn't speak Korean properly and eventually became an undocumented resident."

For foreign workers like Saiduru who entered Korea with an E-9 visa, switching to an E-7 visa is like reaching for the stars. According to the Ministry of Justice's Immigration and Foreign Policy Headquarters, as of last year, the number of E-7 visa holders was 31,051, only one-tenth of the 297,733 E-9 visa holders. Although the annual cap on E-7 visa conversions was expanded from 2,000 to 35,000 starting this year, increasing the number of E-7 visa holders to 55,369 by the end of July, it still only amounts to one-sixth of the 329,911 E-9 visa holders. Those who fail to convert their visas have no choice but to become undocumented residents if they want to stay in Korea.

This is a side effect of the Employment Permit System, which still focuses on short-term labor supply rather than a mid- to long-term immigration policy aimed at training skilled workers to become the foundation of industry. The Employment Permit System, implemented since 2004, allows foreigners to work in manufacturing, construction, and other sectors with government approval. Workers from 16 Asian countries, including Vietnam, Indonesia, Cambodia, and the Philippines, which have signed EPS agreements with Korea, enter the country with E-9 visas. They are subject to the Labor Standards Act and minimum wage but must return to their home countries when their visas expire.

On the 11th of last month, Saidu (28), a foreign worker from Bangladesh, was met at the Immigrant Integration Center in Goyang-si, Gyeonggi-do. He is currently completing a social integration program to renew his E-9 (non-professional employment) visa to an E-7 (professional) visa and expressed difficulties in balancing work and education.

The E-9 visa is valid for 4 years and 10 months and can be extended once. To extend, the worker must stay in their home country for six months before returning to Korea. This allows a maximum stay of 9 years and 8 months on an E-9 visa. To remain and work in Korea beyond this period, an E-7 visa must be obtained.

To convert to an E-7 visa, one must provide proof of at least four years of employment activity in Korea, TOPIK test scores, and completion certificates of social integration programs, all of which are difficult to pass. To obtain proof of four years of employment, workers must endure any workplace abuse without complaint. Saiduru said, "Since I don't speak Korean well, I often have to sign contracts as the boss says and can't take annual leave. There is no wage increase, and sometimes I don't receive severance pay. Many colleagues endure such unfair treatment to avoid deportation."

Completing the TOPIK test and social integration program is also challenging. Saiduru pointed out, "Most classes are held on weekdays, but since we can't freely take annual leave, we have to apply for weekend programs, which fill up quickly. Each class only accepts about 25 people, so getting a spot is like reaching for the stars. Some people wait over a year just to attend the classes."

Undocumented Residents Double in 10 Years... "Already Beyond Control"

The number of undocumented residents due to visa renewal failures is rapidly increasing. Among employers who do not want to lose foreign workers who have worked for nearly a decade, there is a practice of quietly continuing to employ undocumented foreign workers. As a result, the actual number of undocumented residents has doubled over the past 10 years since 2014.

According to the Ministry of Justice's Immigration and Foreign Policy Statistical Yearbook, the number of undocumented foreigners in Korea as of the end of last year was 423,675, more than double the 208,778 in 2014. This means that foreigners who are undocumented account for half the number of foreign workers legally employed in Korea (923,000) but are active in the domestic labor market.

Currently, foreign workers fill the non-skilled labor market in construction and manufacturing, known as 3D industries, which domestic workers avoid. It is impossible to expel all these workers who have become key personnel in various industries such as manufacturing and shipbuilding.

According to the Ministry of Employment and Labor, as of July this year, there were 222,000 new enrollees in employment insurance, of which 174,000 were domestic workers and 48,000 were foreigners. Considering that foreign workers account for only 1.54% (238,000) of the 15,445,000 regular employment insurance subscribers, the increase rate of new foreign enrollees is very high. More than 89% of these are employed in manufacturing.

In the shipbuilding sector, foreign workers accounted for 12,359 of the newly hired workers in the first to third quarters of last year, making up 86% of all new hires. Without them, the industry itself cannot be sustained.

An Bok-young, head of the Korean Immigration Foundation Administrative Joint Office, explained, "The problem of undocumented residents has already grown beyond the government's ability to control. It is impossible to put hundreds of thousands of people on planes and send them back to their countries, and doing so would destabilize Korean manufacturing." He added, "With the low birth rate trend, the proportion of foreign workers will increase further, so urgent alternatives are needed."