The Minute to Read (Weekdays) series provides a quick overview of significant events in Korea everyday, conveniently condensed into a one-minute read. Here’s a recap of what happened yesterday: Dec. 18.
Foreign workers in South Korea top 1M, reflecting growing labor demand
The number of foreign workers in South Korea has surpassed 1 million for the first time, driven by rising demand in sectors like manufacturing, agriculture, and hospitality, according to Statistics Korea’s 2024 survey. Foreign workers now comprise 3.5% of the national workforce, with significant increases in E-9 visa holders for labor-intensive jobs and professional visa holders for skilled roles. The total foreign resident population, including ethnic Koreans, international students, and marriage immigrants, has also exceeded 1.5 million, marking record highs across categories. While foreign labor is essential to offset South Korea’s shrinking working-age population, experts stress the need for better management to prevent market distortions, ensure fair wages, and create pathways for foreign workers to transition from low-skill to skilled jobs, stabilizing the labor market over time.
Longest selling streak in a decade hits South Korea’s chip sector
Foreign investors have maintained a prolonged sell-off of South Korean semiconductor stocks, including Samsung Electronics, marking the longest streak since 2015, with net selling for 22 of the past 23 weeks, according to Mirae Asset Securities. Factors such as weak demand, declining profitability, and oversupply concerns reminiscent of 2015 are driving the trend, alongside broader market challenges like undervaluation and heightened short-term trading. Annual net selling of semiconductor shares has been consistent, except for a brief net buying trend in 2023. Analysts attribute the sell-off to both market-specific issues and political uncertainty, highlighting a growing demand for short-term trades over long-term investment.
HMM to relaunch transatlantic shipping route after 7-year hiatus
HMM, South Korea’s largest shipping company, will resume its transatlantic service in February 2024 after a seven-year hiatus, connecting major European ports with key destinations in the Americas. The move is part of HMM’s $16.36 billion investment strategy through 2030 to enhance global competitiveness by expanding core shipping lanes. The company will deploy ten 4,600-TEU ships on the transatlantic route and introduce a new India-to-Northern Europe route with eleven 6,000-TEU ships, strengthening its presence in growing markets. HMM aims to build an integrated network across critical east-west shipping lanes, capitalizing on rising global demand.
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