Gyeongbuk Province to Provide Up to 25 Million Won per Company for Expansion and Renovation of Foreign Worker Dormitories

On May 28, the Gyeongbuk Provincial Government announced that it will invest 2 billion won (500 million won from the province, 500 million won from cities and counties, and 1 billion won in self-contributions) to implement the "Foreign Worker Dormitory Environment Improvement" project aimed at improving the poor living conditions of foreign workers and enhancing their actual residential welfare.

This project will provide subsidies of up to 25 million won per company to cover remodeling costs for the overall living environment of foreign workers, including expansion or reconstruction of dormitories (including annexes), replacement of safety facilities, and improvements to hygiene and convenience facilities.

Gyeongbuk Provincial Government Building

Accordingly, companies are required to cover 50% of the total project cost as a self-contribution, and within this self-contribution, they may also purchase necessary items.

The project is open to small and medium-sized enterprises (including small business owners) in the province that employ at least 20% foreign workers, regardless of industry type.

The Gyeongbuk Provincial Government will accept applications from participating cities and counties until June 13, and after evaluating whether the applicant cities and counties have secured budgets and possess the capacity to implement the project, it will finalize the selected cities and counties within June. The selected local governments will then conduct their own reviews of eligible companies within their jurisdiction and ultimately select and support the final beneficiary companies.

Companies wishing to participate should check the requirements through the public notice issued by the selected city or county, prepare the necessary documents such as a project plan, current dormitory status, and self-contribution plan, and submit their application.

Cities and counties will select companies based on their own evaluation criteria, such as the age of the dormitory and the type of dormitory ownership. Companies must first implement the environment improvement project and then receive the subsidy through a settlement process. For more details, inquiries can be made to the Foreign Worker Department of the Gyeongsangbuk-do Provincial Government or the relevant city or county office.

The Gyeongbuk Provincial Government expects that once the pilot project is fully implemented, it will significantly contribute to securing workforce stability for companies by substantially improving the living environment for foreign workers who have suffered from outdated dormitory conditions, thereby encouraging long-term employment and reducing turnover rates.

According to statistics from the Ministry of the Interior and Safety, despite the population decline crisis, the number of foreign workers in Gyeongbuk increased by about 18% in 2023 to 27,103, compared to 22,962 in the previous year.

After reviewing the results of the pilot project in detail, the Gyeongbuk Provincial Government plans to transition it to a regular project and expand it to all cities and counties in the province starting next year.

Kim Hak-hong, Vice Governor for Administrative Affairs of Gyeongbuk Province, stated, "Foreign workers are a vital human resource supporting our local industries," and added, "Through this project, we will help workers live in a pleasant and safe environment, and ultimately lay the foundation for foreign workers and the local community to grow together."