After a decade-long hiatus, the government is reviving a program to support foreign workers with a bachelor’s degree or higher to work in small and medium-sized enterprises (SMEs) in South Korea. The program, which was discontinued in the past due to criticism that it was taking jobs from domestic youth, is being reinstated as the labor shortage in SMEs shows no signs of abating. In an effort to address this, the South Korean government has decided to resume the program, focusing on foreign university students who have come to study in Korea.
According to reliable sources, the Ministry of SMEs and Startups is re-launching the “Support Program for the Introduction of Foreign Professional Workers,” which aims to facilitate the employment of skilled foreign workers by local SMEs. The plan for the latter half of this year involves recruiting companies wishing to hire foreign workers and then deploying the necessary manpower. Originally introduced in 2001, this program aimed to bring in foreign workers with specialized knowledge and skills, rather than unskilled laborers (E9 visa holders), and place them in companies that required their expertise. The government supported the selected companies by providing assistance with the living expenses, entry airfare, and partial wages of foreign workers. However, criticism arose questioning the need to bring in foreigners at the expense of domestic youth struggling with unemployment, leading to its termination in 2016. At that time, issues such as labor shortages in local and small businesses, low birth rates, and regional decline were not as severe as they are now.
Nevertheless, with the exacerbation of regional labor shortages, the government has decided to reintroduce the program. The change in perception towards foreign workers has also been considered. A representative of a small and medium-sized enterprise stated, “Even graduates from local universities often seek employment in the capital region rather than showing interest in local businesses,” adding that “if we can find specialized professionals willing to work in the region for an extended period, nationality becomes irrelevant.”
However, the government is now focusing on employing foreign students who are already in South Korea, rather than bringing in workers from overseas. Domestic students studying in South Korea are already accustomed to Korean life and proficient in the language, making them preferred candidates for companies. This approach also reduces the effort and cost associated with recruiting from abroad. In this regard, the Ministry of SMEs and Startups is in discussions with relevant ministries such as the Ministry of Education and the Ministry of Economy and Finance, and has also commissioned related research projects.
Over the past decade, South Korean culture has gained global attention, leading to a significant increase in the number of foreign students coming to study in Korea. The number of foreign students, which was 85,923 in 2013, increased to 166,892 in 2022. Forecasts suggest that by 2027, the era of “300,000 foreign students” will begin.
Han Chang-Yong, Director General of the Policy Analysis and Consulting Center at the Korea Small Business Institute (KOSBI), stated, “Many foreign students studying in Korea aspire to work here, but they often return to their home countries due to difficulties in obtaining information about companies,” adding that “addressing this mismatch alone could secure a significant workforce.”
