The South Korean government has begun full-scale discussions on reforming the system to facilitate the long-term stay of foreign workers and secure skilled labor. The aim is to overhaul the entire system to enable foreign workers to work stably in Korea and accumulate technical skills, going beyond merely supplementing labor shortages. Amidst the prolonged labor shortage in industrial sectors, this is being evaluated as a policy shift to view foreign workers not as “temporary replacements” but as a sustainable workforce.

According to the Ministry of Employment and Labor, the core of this reform can be summarized into three pillars: the duration of stay, the career development structure, and the improvement of living conditions. The government is reviewing plans to establish a foundation for foreign workers to work in Korea for longer periods and to utilize personnel with a certain level of skill for the long term.

The most notable aspect is the reform of the duration of stay. Currently, foreign workers who enter the country through the non-professional employment (E-9) system are limited to working for a maximum of 4 years and 10 months. However, the government is considering introducing a new system to manage residency in three-year increments. Discussions are underway to allow extensions for those who possess a certain level of Korean language proficiency and job proficiency, and to permit stays of up to 12 years once they transition into skilled technical personnel.

This represents a significant change for businesses as well. In industries facing severe labor shortages, such as manufacturing, agriculture, livestock farming, and construction, foreign workers require considerable time to become skilled; however, repeated productivity losses have occurred because they are required to leave the country after a certain period. It is anticipated that enabling skilled workers to remain employed for the long term will reduce on-site training costs and the burden of labor shortages.

The career paths of foreign workers are also expected to be reorganized more systematically. The government plans to design a tiered structure progressing from “unskilled labor” to “mid-skilled” to “high-skilled” to enable the accumulation of technical expertise and career development. The goal is to institutionalize a system that allows workers to move to higher skill levels by building job capabilities and field experience, rather than remaining stuck in simple, repetitive tasks.

In particular, the introduction of a field-oriented evaluation system is expected to increase instances of workers transitioning into skilled technical personnel after their actual work capabilities are recognized. While qualification requirements and documentation standards were relatively emphasized in the past, it is highly likely that on-site performance and technical skills will become more important evaluation factors in the future. This is interpreted as a change that provides foreign workers with opportunities for long-term career planning.

The workplace transfer system has also been put under review. This is because, with approximately 40% of foreign workers having experienced job changes, the concentration of labor in the Seoul metropolitan area and the avoidance of specific industries are intensifying. Critics have pointed out that a structure is becoming entrenched where demand for transfers is concentrated at popular workplaces in the capital area, while small and medium-sized enterprises in provincial areas and those in less favorable sectors struggle to secure manpower.

Accordingly, the government is reviewing various alternatives, including measures to restrict workplace transfers for a certain period or to make transfers within the same industry the principle. However, labor unions and human rights groups have raised concerns that excessive restrictions on movement could lead to infringements on labor rights, leading to calls for a balanced approach during the future design of the system.

Improving living conditions is also a major task. The government plans to expand its policies beyond simply providing accommodation to guarantee foreign workers‘ right to housing and living standards. The plan is to improve the poor dormitory conditions, safety issues, and lack of living infrastructure that have been raised in some sectors, and to establish an integrated support system that links residency, employment, and living support.

Experts assess that this reform differs in nature from a mere policy of expanding the foreign workforce. They argue that the policy focus is shifting toward fostering foreign workers in the long term and ensuring their stable settlement in local communities, given that domestic labor alone is insufficient to meet industrial demands due to population decline and aging.

Based on these discussions, the government plans to announce the “Integrated Support Roadmap for Foreign Workforce” during the first half of this year. If the system reform is implemented, significant changes are expected not only in the residency stability and working conditions of foreign workers in Korea but also in the workforce structure of domestic industries.

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