Foreign students attend the 2024 Busan International Students Job Fair at Kyungsung University in Busan’s Nam-gu on Sept. 27, 2024, as they prepare their resumes./Yonhap News
Foreign students attend the 2024 Busan International Students Job Fair at Kyungsung University in Busan’s Nam-gu on Sept. 27, 2024, as they prepare their resumes./Yonhap News

For the first time, the number of foreign workers in South Korea has exceeded 1 million, driven by rising demand across sectors like industry, agriculture, and hospitality. At the same time, the total foreign resident population, which includes ethnic Koreans, international students, and marriage immigrants, has surpassed 1.5 million, according to government data.

Statistics Korea, in its “2024 Immigrant Residence and Employment Survey” released on Dec. 17, reported that as of May, 1.01 million foreign residents aged 15 or older were employed in South Korea. This marks an increase of 87,000, or 9.4%, from the previous year, the highest since the data was first collected in 2012. Foreign workers now account for 3.5% of the country’s total workforce of 28.91 million.

The number of workers holding E-9 visas, issued under the Employment Permit System (EPS), rose to 302,000, up 34,000, or 12.6%, from last year. The E-9 visa restricts employment to specific sectors—manufacturing, shipbuilding, agriculture, construction, and certain service industries—based on annual quotas determined by government assessments of labor demand. This sharp uptick in E-9 visa holders reflects the growing reliance on foreign labor in sectors facing significant labor shortages, such as factories, shipyards, and rural areas.

Meanwhile, workers holding professional visas (E-1 to E-7), which include athletes and language instructors, also saw a notable increase, reaching 65,000 in May—a 39.9% jump from the previous year.

“Employers, particularly small and medium-sized enterprises in regional areas, are increasingly turning to foreign workers to fill vacancies, leading to a steady rise in foreign labor,” a Statistics Korea official said. The increase was most pronounced in agriculture, forestry, and fisheries (37%), manufacturing and mining (11.9%), and retail, accommodation, and food services (12.4%)—industries that often require less-skilled but immediate labor.

By business size, the number of foreign hires at small establishments with fewer than four employees rose by 9.6%, while mid-sized firms with 50 to 299 employees saw a 46% surge. Wage earners made up 95% of foreign workers, with 51.2% earning between 2 million and 3 million won ($1,500–$2,300) per month. Another 37.1% earned over 3 million won, meaning 88.3% of foreign workers earned at least 2 million won monthly.

Filipino workers participating in the foreign domestic worker pilot program arrive at Incheon International Airport on the morning of Aug. 7, 2024./News1

The total foreign resident population, including ethnic Koreans, international students, and marriage immigrants, reached 1.56 million in May, up 9.2% from 1.43 million the previous year. This marks the first time the figure has exceeded 1.5 million since data collection began in 2012.

The number of foreign nationals with permanent residency, primarily from China and Vietnam, increased by 7.6% year-on-year to 141,000, more than doubling since 2012. Among this group, 62.1% expressed plans to acquire South Korean citizenship, up from 60% two years ago.

Foreign residents of Korean descent, such as ethnic Koreans from China (Joseonjok) and post-Soviet states (Koryoin), totaled 402,000, a 4.1% increase from the previous year. International student numbers rose by 6.4% to 200,000, while marriage immigrants increased by 1.7% to 122,000, all reaching record highs.

Experts caution that while foreign labor is essential to offset South Korea’s shrinking working-age population, it must be carefully managed to avoid displacing elderly workers or exacerbating labor market imbalances.

“With the rise in foreign workers, young job seekers may avoid workplaces with high concentrations of foreign labor, while elderly workers face a higher risk of job displacement,” said Noh Min-seon, a research fellow at the Korea Small Business Institute. “It’s critical to direct foreign workers to unfilled positions while safeguarding sectors where elderly workers can remain employed, such as low-skill service jobs.”

Calls are also growing to expand the role of foreign labor beyond low-wage, low-skill positions. Lee Kyu-yong, a senior researcher at the Korea Labor Institute, warned that continued reliance on low-wage foreign workers could distort the domestic labor market and suppress wage levels.

“Newly arrived foreign workers can help address vacancies in low-wage roles, but we need systems to ensure they progress to higher wages and better working conditions as they gain skills and experience,” Lee said. “Creating a natural pathway from low-skill to skilled jobs will help stabilize the labor market over time.”