98.2% of SMEs Plan to Maintain or Increase Foreign Worker Employment... "Difficult to Hire Domestic Workers"

Results of the "Employer Survey on the Employment of Foreign Workers"
4.5-Day Workweek Expected to Increase Deadline Pressures and Labor Costs

The majority of small and medium-sized enterprises (SMEs) plan to maintain or increase their employment of foreign workers, according to a recent survey.

The Korea Federation of SMEs announced on the 16th the results of the "2025 Employer Survey on the Employment of Foreign Workers," which targeted 503 SMEs currently employing foreign workers. The survey was conducted over two weeks in July 2024 and focused on businesses with 50 or more employees that hired foreign workers during that year.

According to the survey, 93.8% of respondents said they hire foreign workers because it is difficult to recruit domestic workers. In contrast, only 2.6% cited cost savings as the reason for hiring foreign workers, suggesting that the employment of foreign workers through the employment permit system is less about reducing costs and more a result of structural labor shortages caused by low birth rates and an aging population.

Among the companies surveyed, 98.2% said they plan to "maintain or increase" (increase 38.2% + maintain 60%) the number of foreign workers they employ. For those planning to increase, the average number of additional hires was 6.5. When asked about their outlook for demand for the employment permit system over the next three years, 55.5% expected an increase (significant increase 7% + slight increase 48.5%), 41.7% expected demand to remain at current levels, and only 2.8% anticipated a decrease.

Additionally, 60.8% of respondents said they prefer to hire foreign workers of the "same nationality as their current workforce." This suggests that hiring workers of the same nationality is seen as a way to enhance management efficiency from a workforce management perspective.

Regarding the impact of a 4.5-day workweek, 42.1% of respondents cited "difficulty in meeting deadlines," and 24.1% pointed to "increased labor costs and expenses," indicating that the implementation of such a system would pose operational challenges for businesses.

Lee Myungro, Director of Workforce Policy at the Korea Federation of SMEs, stated, "With the launch of the new government, expectations for economic improvement among businesses employing foreign workers have become more positive," adding, "As employment plans are being maintained or expanded, we hope that the stable operation of the employment permit system will ensure timely labor supply."