CONVINUS Global Mobility
CONVINUS Global Mobility Insights - Herbst / Fall 2025The Reality of Korea’s Low-Skilled Labour SupplyPolicy (E-9 Visa) and the Employment RegistrationSystem as an AlternativeDemographic Change and the Growing Demand for ForeignLabourAuthor: Yujin Kim, CEO, HanGuk VisaKorea is facing a steady decline in its working-age population due to low fertilityrates and an aging society. Industries that rely heavily on low-skilled workers—suchas manufacturing, construction, agriculture, and fisheries—are finding itincreasingly difficult to operate without foreign labour. This labour shortage isparticularly acute in rural regions compared to metropolitan areas, leaving manylocal employers struggling to secure the workforce they need.In this context, the current Employment Permit System (E-9 visa), which supplieslow-skilled foreign workers, has significant limitations. Because the governmentoversees the entire process—from recruitment abroad to job placement in Korea—the system often fails to respond quickly to the needs of local industries. Inaddition, the cumbersome and complex procedures, along with the severerestrictions on job changes for foreign workers, raise concerns about human rights.Through my professional experience handling visa applications for foreign workers,I have seen these problems firsthand. Many workers are forced to rely on brokers intheir home countries just to be selected and often come to Korea without receivinga clear job description in advance. This frequently leads to a mismatch betweenexpectations and reality once they arrive. Based on these concerns, discussions areunderway to explore a market-oriented alternative model—the EmploymentRegistration System.Structural Problems of the Employment Permit System (E-9)The current Employment Permit System is based on the Act on the Employment, etc.of Foreign Workers. Under this framework, businesses that meet certain require-34
CONVINUS Global Mobility Insights - Herbst / Fall 2025ments can hire foreign workers only after obtaining government approval. Eligiblejob categories are strictly limited, and workers are recruited from 17 countries (SriLanka, Indonesia, Nepal, Bangladesh, the Philippines, Cambodia, Uzbekistan,Kyrgyzstan, Tajikistan, East Timor, Pakistan, Myanmar, Vietnam, Mongolia, Laos,Thailand, and China). These workers must also undergo government-mandatedtraining before being placed in workplaces.One of the system’s biggest shortcomings is its inability to properly reflect thelabour demand in different industries. Quotas are allocated annually by thegovernment, but these numbers rarely align with actual needs. For example, labourdemand in agriculture and fisheries fluctuates with the seasons, while demand inconstruction and manufacturing changes depending on economic conditions. Therigid allocation system leads to inefficiencies—some industries face labourshortages while others are left with unused quotas.Human rights concerns are another serious issue. E-9 workers face strict restrictionson changing jobs. They can only see their actual working environment after beingassigned, and even if the conditions are poor, they cannot easily move to anotheremployer without government approval. Although not legally impossible, theprocedures are complicated and opportunities are limited, making it nearlyimpossible in practice.Recruitment practices in sending countries also remain problematic. Many workersincur heavy debts by paying brokers for placement, creating a cycle of financialvulnerability that forces them to endure exploitative conditions. This process oftenleads to illegal employment, labour exploitation, or overstaying after their visaexpires. Ultimately, the current system creates structural problems that riskbecoming broader social issues.The Employment Registration System as an AlternativeAs an alternative, the Employment Registration System has been proposed. Unlikethe Employment Permit System, this model shifts away from direct governmentcontrol and allows private companies that meet specific standards to recruit foreignworkers autonomously. The government would act primarily as a supervisory andregulatory authority, ensuring that companies comply with labour laws and mini-35
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