South Korean shipyards want more foreign workers but paid less

The Korea Enterprises Federation has asked the Ministry of Economy and Finance to ease measures mainly in shipbuilding industry. Experts warn this could force foreign workers into overtime without adequate downtime, increasing potential workplace accidents.

Seoul (AsiaNews/Agencies) – The Korea Enterprises Federation (KEF) has asked the South Korean government to lower the minimum wages for E-7 visa holders employed in shipbuilding.

The latter can earn a base salary equal to 80 per cent of the previous year’s gross national income (GNI) per capita, i.e. around 2.7 million won (US$ 2,050) per month.

Earlier this year, to make foreign labour more affordable, the Justice Ministry greenlighted a three-year temporary measure under which small and medium-sized firms located outside the Seoul metropolitan area would be authorised to pay E-7 visa holders 70 per cent of the previous year's GNI per capita (about 2.5 million won per month).

Companies argue that foreign workers can still earn more than South Korean workers by putting in more overtime.

South Korea suffers from a labour shortage in shipyards. To address the issue, the KEF recently asked the Office for Government Policy Coordination and the Ministry of Economy and Finance to allow large manufacturers and plant builders to hire foreign workers holding E-9 visas.

At present, only companies with fewer than 300 employees or less than eight billion won in capital can hire E-9 visa holders.

South Korean entrepreneurs want the authorities to allow the use of foreign workers for sorting parcels and maintaining vehicles. Under the current law, only logistics firms can use foreigners in loading and unloading at logistics centres.

“For Korea to overcome its economic difficulties, the government needs to ease various regulations that have impeded corporate management," said Lim Young-tae, head of KEF's employment policy team, cited by The Korea Times.

This request is, however, raising concerns that foreign shipbuilding workers would be forced to work more overtime, leaving them with not enough downtime.

“The accumulation of fatigue could make migrant workers more vulnerable to the risk of industrial accidents," said Kim Hyun-mee, a professor at Yonsei University’s Department of Anthropology.

• south korea
• shipbuilding
• foreign workers
• visas
• e-7
• e-9
• overtime
• downtime
• korea enterprises federation
• kef
• industrial accidents