KEF Survey on Perceptions of Foreign Labor Policy
"Should Increase the Number Beyond This Year’s 130,000"
It has been found that there is a growing call to expand the supply of foreign workers, particularly in the manufacturing and construction sectors, where it is difficult to recruit Korean employees. There are demands to increase the introduction of foreign workers and to extend their legal stay period.
On November 19, the Korea Employers Federation (KEF) conducted a survey titled "Status of Foreign Worker Utilization and Policy Perception" targeting 312 companies (based on responses) in major industries with fewer than 300 employees. The results showed that 45.2% of respondents said the number of foreign workers introduced next year should be increased compared to this year (130,000), making it the most common response. This was followed by 43.6% who said the number should be maintained at this year's level.
By industry, manufacturing and construction companies had the highest proportion of responses favoring an increase compared to this year, while service industry companies most commonly responded that the level should be maintained.
When asked why they hire foreign workers, 61.5% of respondents cited "difficulty in recruiting domestic workers," making it the most common reason. This was followed by "relatively lower labor costs" at 21.5%, "lower turnover rate" at 7.7%, "possibility of employment for more than two years" at 2.9%, "lower likelihood of labor disputes" at 1.0%, and "other reasons" at 5.4%.
The proportion of respondents citing difficulty in recruiting domestic workers as the reason for employing foreign labor was highest in 2023 at 92.7%, then decreased to 34.5% in 2024, before rising again to 61.5% in 2025. This suggests that Korean companies still have a high practical demand for hiring foreign workers due to labor shortages, rather than simply aiming to reduce costs.
When asked about the difficulties of utilizing foreign workers, 47.4% of responding companies (multiple responses allowed) pointed to "short legal stay periods" as the biggest institutional challenge. "Complicated hiring procedures" were cited by 36.9%, and "frequent changes in regulations" by 26.9%.
In terms of practical challenges, "communication difficulties" was the most common response at 50.3% (multiple responses allowed), followed by "direct labor costs" at 32.7% and "indirect labor costs" at 31.1%.
When asked about the most necessary policy tasks for utilizing foreign workers, "flexible and prompt labor supply according to economic conditions" was the top response at 46.2% (multiple responses allowed).
Kim Sunae, head of the employment policy team at the Korea Employers Federation, said, "Foreign workers have already become essential personnel at industrial sites, to the extent that some small and medium-sized companies cannot operate their factories without them. It is necessary to shift to a flexible foreign labor supply system that can respond quickly to on-site demand, so that foreign labor policies can not only alleviate manpower shortages at small and medium-sized enterprises but also enhance industrial competitiveness."
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