Using Foreign Labor Is a Growth Strategy

Foreigners Have Become Essential Talent in an Era of Demographic Constraints / Institutional Limits Make It Difficult to Accumulate Skills / “Contribution over Origin” … We Must Boost Economic Vitality

Korea has entered an era of demographic constraints. With low birth rates and population aging, the number of people available to work is shrinking. Labor shortages are emerging across many sectors, including manufacturing, farming and fishing villages, restaurants, caregiving, and research and development.

Foreign workers play an especially large role in rural communities and on farms. Foreign workers from the Philippines, Cambodia, Vietnam, and other countries are filling gaps in both seasonal and permanent labor.

Across industrial workplaces as a whole, the share of foreign labor is also rising. In production sites and throughout local economies, foreign workers have become an important source of labor. In manufacturing, shipbuilding, construction, and services, the number of jobs that are difficult to fill with Korean nationals is increasing. Foreign labor is no longer limited to a supporting role in specific industries.

The inflow of talent is also expanding. The number of foreign students who study and live in Korea while learning the language and culture is growing. These are talented individuals with strong potential to adapt to Korean society and industrial workplaces. If, after graduation, they can move into research and development, regional firms, and the service sector, foreign labor policy can expand beyond simply supplementing manpower into a broader policy of utilizing talent.

The problem is that institutions are not adequately keeping pace with on-the-ground demand. Businesses and local communities need people. Yet visa requirements, limits on length of stay, and complicated transition procedures often make it difficult to make use of available workers. Even when the needed people exist, if institutional procedures prevent them from being connected to workplaces, labor shortages are prolonged. Hiring and training costs for businesses inevitably rise as well.

Short-term rotational foreign labor systems also make it difficult to accumulate skills. When foreign workers who have learned the job on site must leave because of limits on their period of stay, companies have to hire again. Training must start over from the beginning. This is a loss for businesses and for workers alike. Ultimately, it leads to lower productivity. In a situation where labor shortages have become structural, pathways that allow people not only to enter but also to remain and grow are just as important.

The solution must begin by viewing foreign workers as members who can contribute to Korea. What matters is not nationality, but the ability and willingness to build a future together on this land. Contribution over origin. A society that broadens opportunities for more people to demonstrate their abilities is a competitive society.

From a policy standpoint, it is necessary to expand legal pathways for residence and employment. If workers under the Non-Professional Employment (E-9) visa accumulate skills, they should be able to transition to the Skilled Worker (E-7-4) visa and work long term. It is also important to create an environment in which foreign workers can understand the law and contracts and participate in the market in a stable manner.

Foreign labor policy must move in a direction that supports the sustained growth of the Korean economy. Workplace demand and the visa system must be aligned. When skilled workers stay, and when foreign students and professionals move into industrial workplaces, productivity and competitiveness also rise. We must broaden an environment in which talent can work and grow on the basis of the rule of law and the principles of contract. That is the path to strengthening the vitality of the Korean economy beyond the era of demographic constraints.

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Original title: 외국인 인력활용이 성장 전략이다

Author: Ho-gyeong Lee

Date: 2026-06-17

Source: https://www.cfe.org/bbs/bbsDetail.php?cid=press&pn=1&idx=29172