Issue Scale and pace of foreign labour intake in Korea

Summary

Foreign workers already serve as a source of labour supply in Korea, filling shortages in low-skill, low-value-added industries and occupations where large employment declines are expected. KEIS cautions that the speed and scale of increased inflows, and the selection of industries and occupations, strongly affect the employment and wages of Korean workers. It therefore calls for policies built on social discussion and consensus rather than a purely administrative expansion. The report adds that encouraging foreign workers to move into high-skill jobs and supporting their settlement are needed to sustain inflows in a supply-constrained labour market. Elsewhere it proposes actively bringing in foreign workers to fill any shortfall that remains after mobilising women, young people and older people.