South Korea will make it easier for foreign workers to transfer between branches at construction sites managed by the same employer. This measure aims to tackle the rising labor costs at construction sites by better utilizing foreign workers.
The government is preparing a detailed plan to stabilize construction costs, according to relevant ministries on Sept. 27. The plan, which includes easing restrictions related to foreign workers, will be announced on Oct. 2.
Construction sites in Korea generally employ more foreign workers than domestic workers. Foreign workers are usually hired through the employment permit system, which allows businesses in the construction, manufacturing, and agriculture sectors to hire foreign workers if they struggle to hire locals.
But under the current system, foreign workers are prohibited from moving to other workplaces outside their initially authorized locations. Even moving between sites managed by the same employer was restricted.
In response to industry complaints that the current system is inflexible, the government made changes late last year to allow foreign workers to transfer to other construction sites under the same employer, but only in cases where work was temporarily suspended due to budget issues, extreme changes in weather, or union disputes.
However, construction sites argued that this was not enough. Foreign workers on construction sites are divided into teams based on the construction process, such as ‘rebar teams,’ ‘pouring teams,’ and ‘formwork teams.’ Each team’s work is sequentially dependent on the others. For example, pouring concrete can only begin after rebar placement is completed. As a result, the pouring team is left idle while the rebar team works. In situations where Site A is undergoing concrete pouring, and Site B is conducting rebar work, the industry has suggested that the idle rebar team members at Site A be deployed to assist with rebar work at Site B to maximize labor efficiency.
As a result, the Ministry of Economy and Finance and related ministries have decided to further ease regulations. The proposed changes will allow foreign workers to transfer between sites managed by the same employer. “The new measures reflect the government’s efforts to support the construction industry, which has been hard hit by the recent economic slowdown and surging labor and materials costs,” said an industry insider.
