[Reporter’s Notebook] How to Successfully Integrate Foreign Domestic Workers

The foreign domestic worker program is at a crossroads. Initially, the plan was to launch the full-scale program in June 2025 after the pilot project ended in February 2025. However, the only update has been the extension of the pilot period by one year, making the future of the full-scale program uncertain.

The "high cost" controversy, which has been an issue since the program's inception, has become a major obstacle. The hourly wage for foreign domestic workers is set at 16,800 won, which includes the minimum wage, weekly holiday allowance, and the four major social insurances. In February, when the Seoul Metropolitan Government subsidized the operating and management costs for service providers, the hourly rate was 13,700 won. However, since March, when private companies began operating autonomously, the rate increased. For a household using the service four hours a day, five days a week, the monthly cost amounts to 1.46 million won. Statistics revealed that 73.3% of households using the service had a combined monthly income of over 9 million won, leading to criticism that only the wealthy benefit from the program.

Regarding the cost issue, it is clear that the initial steps were misguided due to insufficient review. At the beginning of the program, the Seoul Metropolitan Government argued for an exemption from the minimum wage (10,300 won per hour). However, the Ministry of Employment and Labor pointed out that International Labour Organization (ILO) conventions prohibit wage discrimination based on nationality, making such an exemption difficult. The domestic workers entered Korea on E-9 (Employment Permit System) visas, which require the same minimum wage as Korean workers.

Does this mean the program should be abandoned? I do not think so. Foreign domestic workers have several advantages that qualify them as "skilled professionals." Those who have come to Korea hold a "Caregiving NC II" certificate accredited by the Philippine government and have undergone background checks. Most of them are young, giving them a competitive edge in Korea's aging care market. Jeon Changmin, CEO of Hubris, a provider of domestic worker services, noted, "Existing domestic care workers in Korea tend to be older, making it difficult for them to play actively with children. Since the arrival of foreign domestic workers, there has been feedback that children's play activities have become more diverse." In Korea, where dual-income couples with young children often have to wait several months to hire a domestic helper, these workers are a suitable human resource.

In a care market where supply cannot keep up with demand, it is worth considering whether artificially lowering prices or restricting market entry aligns with market principles. Moreover, we should abandon the notion of treating workers from countries with relatively weaker economies as "cheap labor."

Of the 100 domestic workers who entered Korea in August 2024 for the pilot program, 86 remain in the country. Now is the time for flexible policy management and adaptive responses, such as partial cost-sharing by the central and local governments, so that more dual-income couples can access these services.