Foreign Worker Job Transfer Restrictions Remain a Complex Equation With No Solution in Sight

TF Led by Ministry of Employment and Labor Disbanded Last Month
Stalled by Labor-Management Disagreements; Additional Proposal to Be Prepared
SMEs Call for Minimum Two-Year Mandatory Service
"Creating an Environment for Long-Term Employment Should Come First"

As the government moves to ease restrictions on foreign workers changing workplaces, the official channel that had been gathering opinions from relevant ministries and industry stakeholders has temporarily closed after failing to find common ground. The Ministry of Employment and Labor, which is the primary ministry in charge, plans to coordinate differing opinions and prepare an additional proposal.

According to industry sources on March 6, the "Foreign Workforce System Reform Task Force (TF)," which had been operated under the Ministry of Employment and Labor, was officially disbanded at the end of February. The task force was launched in December of last year to establish measures for easing workplace transfer restrictions for foreign workers who have entered Korea with a non-professional employment (E-9) visa under the Employment Permit System. Participating organizations included relevant ministries such as the Ministry of SMEs and Startups and the Ministry of Justice, business organizations such as the Korea Federation of SMEs, and labor groups including the Korean Confederation of Trade Unions.

The Ministry of Employment and Labor initially considered a plan to shorten the mandatory period of service at a workplace to between one year and one and a half years, and to allow foreign workers to freely change workplaces within non-metropolitan regions after that period. However, it is reported that opposition from the small and medium-sized business sector prevented a final agreement from being reached. The ministry plans to gather further opinions from various stakeholders and finalize a proposal as early as within the first half of the year. Under the current system, foreign workers who enter Korea with an E-9 visa are required to work at their initial workplace for three years, after which they can transfer only within the same region among five designated areas (the Seoul metropolitan area, Chungcheong area, Gyeongnam area, Gyeongbuk/Gangwon area, Jeolla/Jeju area, and Chungcheong area).

The government's move to relax restrictions on foreign workers changing workplaces gained momentum in February of last year, following an "incident of collective bullying of foreign workers" at a brick factory in Naju, South Jeolla Province. When it became known that the Sri Lankan worker involved in the incident was unable to change workplaces, controversy spread over claims that the current system excessively infringes on the human rights of foreign workers.

The small and medium-sized business sector maintains that the mandatory period of service at the initial workplace should remain at two years, with the current five-region system unchanged, and insists that no further concessions can be made. They argue that, as foreign workers have already become essential personnel at worksites, further easing of workplace transfer restrictions could worsen the labor shortage for small and medium manufacturing businesses in non-metropolitan areas. There are also widespread concerns that skilled workers who have completed years of work training will immediately leave for better jobs once the mandatory service period ends. According to a survey by the Korea Federation of SMEs last year, 74.4% of respondents answered that "more than three years" is appropriate as the minimum period for foreign workers, and 48.2% said that they assign highly skilled positions based on years of service.

An industry official stated, "In order to develop a skilled foreign worker, companies provide lodging and training, and invest considerable time and money to help them adapt to work. Even now, there are many cases where workers request a workplace transfer in less than a year by feigning illness or neglecting their duties. If regulations are further relaxed, some companies may have no choice but to shut down due to a severe labor shortage."

The small and medium-sized business sector is united in the view that, rather than making workplace changes easier for foreign workers, it is more urgent to create an environment where they can stay longer at the same workplace. Noh Minseon, a senior research fellow at the Korea Small Business Institute, emphasized, "If restrictions on foreign workers changing workplaces are eased, the risk of workforce drain from these companies will grow. It is necessary to design incentives to encourage long-term retention, such as expanding opportunities for skilled workers who have served for a certain period to convert to an E-7 (skilled worker) visa or to receive preferential treatment for re-entry, thereby enhancing their residency stability."

This content was produced with the assistance of AI translation services.