The South Korean government is considering measures to allow non-professional work visa holders (E-9 visa holders) to work in all types of eateries as part of efforts to address persistent labor shortages across sectors.
Currently, a pilot program permits E-9 visa holders to work exclusively in Korean restaurants located in the top 100 major regions. The government aims to extend this initiative, anticipating relief for the domestic restaurant industry’s labor shortage and stabilization of food prices.
Sources from the Ministry of Agriculture, Food and Rural Affairs disclosed on April 5 that, in response to ongoing complaints from self-employed individuals about labor shortages, the decision was made to broaden the industries eligible to hire E-9 visa workers. Additionally, considerations include relaxing restrictions on employee numbers per business and expanding the areas where this program can operate.
This year, the government has added the restaurant industry to the list of sectors eligible to hire E-9 visa workers. Previously, these visa holders were limited to agriculture, fisheries, manufacturing, and construction.
However, specific restrictions remain in place, limiting the initiative to Korean restaurants in 100 designated regions, including specific districts in Seoul and Busan. Moreover, limits on the number of employees per business have been set, allowing companies with five or more employees to hire a maximum of two E-9 visa workers, while those with fewer than five employees can only hire one.
According to Statistics Korea, food service sector inflation has remained above the overall average for 34 months since June 2021. In March, food service sector inflation reached 3.4%, surpassing the overall consumer price index average of 3.1%.
Industry experts attribute this to simultaneous increases in raw material costs and labor expenses, especially due to severe labor shortages necessitating higher wages to attract employees. The government hopes that employing foreign workers will help alleviate labor costs and stabilize food prices.
The final decision on expanding employment for E-9 visa workers rests with the Ministry of Employment and Labor and the Ministry of Justice. The Ministry of Agriculture, Food and Rural Affairs plans to engage in discussions with both ministries soon.
