Latest news with #EmploymentPermitSystem
Korea Herald
3 days ago
- Business
- Korea Herald
Foreign workers in S. Korea face triple the workplace death risk of Korean nationals
Foreign workers in South Korea are dying on the job at rates far higher than Korean nationals. In just the first half of this year, 75 workers lost their lives, according to new government figures. The disparity in fatality rates is stark. Foreign nationals make up just 3.4 percent of South Korea's total workforce, about 1 million out of 29 million workers. Yet they account for between 10 and 15 percent of workplace accident deaths each year. Based on those proportions, the likelihood of dying in a workplace accident is roughly three to four times higher for foreign workers than for Korean nationals. The new figures come from the Korea Workers' Compensation and Welfare Service, which also tracks injury and illness claims. Between January and June, foreign employees submitted 5,173 claims, up 4.5 percent from 4,950 in the same period in 2024. Most were for accident-related injuries (4,415 cases), while a smaller portion involved occupational diseases (758 cases). During that same period, compensation was approved in 59 of the 75 death cases. Fatal accidents were recognized in nearly every instance (51 approvals out of 53 claims), while occupational disease deaths were far less likely to be approved (8 approvals out of 22 claims). The number of claims from foreign workers has been climbing steadily for years. Annual claims by foreign workers grew from 8,062 in 2020 to more than 10,000 in 2024. Labor experts say this is no coincidence. Many foreign employees are concentrated in sectors with higher accident risks such as construction, manufacturing and agriculture. They also face language barriers, social discrimination and unstable contracts that can make it difficult to demand safer working conditions. Under the current Employment Permit System, changing employers is tightly restricted, even for workers in dangerous environments. The Ministry of Employment and Labor has announced plans to relax these restrictions so that foreign workers can more easily move to safer workplaces. Lee Yong-woo, a senior researcher at the IOM Migration Research and Training Center, said foreign workers face 'a combination of language barriers, social discrimination and unstable employment status' that heightens their risk compared with the broader workforce. He urged authorities to also address 'blind spots' such as workplace safety for undocumented laborers.
Korea Herald
28-07-2025
- Business
- Korea Herald
Insurers target Korea's 1m foreign workers with improved access
With coverage still at about 50%, foreign workers drive new insurance push As South Korea's foreign workforce surpasses 1 million, insurers are lining up products tailored to this growing but historically underserved population. With local insurance markets nearing saturation, foreign residents have become increasingly attractive as a new source of growth — launching tailored products, forming partnerships and expanding digital services. Workers make up half of Korea's 2.04 million long-term foreign residents, and financial institutions are expanding insurance offerings and streamlining access through digital platforms. A recent agreement between KB Kookmin Bank, Korea's largest commercial bank, and Samsung Fire & Marine Insurance, the nation's biggest non-life insurer, targets blue collar workers. The partnership aims to simplify access to the four types of mandatory insurance required under the government's Employment Permit System for workers on E-9 (non-professional employment) and H-2 (work-and-visit) visas. The four types are: Departure Guarantee Insurance, which serves as a severance substitute for those who complete over one year of work and return home; Wage payment guarantee insurance, covering unpaid wages in case of employer default; Return-expense insurance, which helps cover flight costs, with premiums paid by the worker and reimbursed upon verified departure; and Accident insurance, which compensates for non-work-related injuries, illness or death, supplementing Korea's industrial accident coverage. Of the four, the first two must be arranged by the employer, while the latter two are the employee's responsibility. Return-expense insurance is the only one for which the worker pays the premium directly. Although Departure Guarantee Insurance is similar to statutory severance pay, it is only payable when workers leave Korea, making it difficult to resolve disputes if the amount is less than what is owed. Recent moves such as this make it easier to monitor what has been paid in, allowing workers to check the amount in advance and take action if necessary. Starting this month, foreign workers will be able to view their Samsung Fire-provided insurance policies via KB Kookmin Bank. By the third quarter, the service will expand to include online claim filing, enabling a fully digital policy management for foreigners. This marks Samsung Fire's second partnership with a domestic bank for E-9 visa holders, following its collaboration with Hana Bank last September. Meanwhile, Woori Bank has also expanded access, allowing foreign laborers to view work-related insurance policies via its 'Woori Won Global' app. NongHyup targets seasonal workers NH NongHyup Bank — one of Korea's five largest commercial banks, with a focus on rural and agricultural finance — has also entered the space with a financial package tailored to seasonal workers on E-8 visas. Launched in June, the 'E-8 Package' is the first product under the bank's new foreign customer brand 'NH Global With.' It offers integrated services including insurance coverage in partnership with group affiliate NH Property & Casualty Insurance. The package was developed based on feedback from seasonal workers themselves, aiming to close service gaps for those who still fall through the cracks of Korea's insurance system. In a related move, NH Casualty also rolled out a specialized policy for public seasonal workers — those hired directly by municipal governments and dispatched to farms via NongHyup cooperatives. Their number, which includes non-E-8 holders reached 95,700 this year, up 40 percent on-year. The policy covers farm-related liability, early repatriation due to illness or injury, and losses from government-declared disaster zones. Foreign policyholders on the rise This wave of activity comes as the number of insured foreign residents in Korea continues to grow. As of last year, 1.03 million of them were enrolled in a plan with a local private insurance firm. That's just over half, and up from 990,000 the year before. Despite this growth, the coverage rate among foreign residents still lags far behind that of Korean nationals, which nears 90 percent. Reflecting this gap and its potential, insurance contracts held by foreign nationals in Korea grew at an average annual rate of 19 percent between 2019 and 2023, significantly outpacing the 13.2 percent growth recorded among Korean policyholders, according to the Korea Credit Information Services. To support these developments, the Financial Supervisory Service established a dedicated task force in May and launched a comprehensive review of insurance subscription trends among foreign residents. The regulatory agency requested insurers to submit data on the number of foreign policyholders and contracts from 2021 to 2024, along with measures taken to improve accessibility. The FSS also plans to roll out standardized guides in English and Chinese for each stage of the insurance process — including enrollment, maintenance and claims — in the coming month. Starting in the fourth quarter, insurers will be required to provide these multilingual guides alongside existing materials at key touchpoints.
Korea Herald
22-06-2025
- Business
- Korea Herald
E-9 foreign worker arrivals plunge 21% amid economic slump
The number of foreign workers entering South Korea under the non-professional employment visa dropped by 21 percent in the first half of this year compared to the same period last year amid growing concerns over a slowing economy. According to the Ministry of Employment and Labor, the number of workers arriving in Korea under E-9 visas through the Employment Permit System totaled 28,520 as of June 10, down 20.9 percent from the 36,048 who entered during the same period last year. The Employment Permit System is a government program that allows employers facing chronic labor shortages to employ qualified foreign workers. Foreign workers who are employed under the Employment Permit System receive the E-9 visa and work in industries such as agriculture and livestock, fishing, as well as construction, manufacturing, services, mining and forestry. According to the Labor Ministry, the number of workers coming into Korea under the E-9 visa sharply declined during the COVID-19 pandemic, but rebounded in 2022 and 2023, reaching totals of 88,102 and 100,148 workers in those years, respectively. However, the number fell again in 2024 to 78,025 -- well below the government-set cap of 165,000 foreign workers. 'The economic slowdown has had an impact on demand for foreign workers, leading to the decrease,' said a Labor Ministry official. While an annual quota is normally set by the government, only 21.9 percent of the 130,000-person cap for this year has been filled so far, according to the Labor Ministry. When excluding flexible allocations for specific sectors, 29.1 percent of the 98,000 available slots have been filled. By industry, the manufacturing sector -- which typically takes up the largest share of E-9 visa holders -- saw a significant drop in new arrivals. While a total of 28,887 workers were admitted in the manufacturing sector in 2024, the number fell 25.8 percent this year to 21,443. Other industries also recorded notable declines. A drop of 21.7 percent in the number of workers under the E-9 visa was seen in the fishing sector, while the construction sector saw a decrease of 33.1 percent compared to last year. Only the agriculture and livestock sector and the service sector saw an increase in worker numbers. However, these gains were small and were not enough to offset the broader decline. The agriculture and livestock sector saw a 19.3 percent increase -- from 3,379 laborers in the first half of 2024 to 4,031 in the first half of 2025 -- and the service sector saw a 27.5 percent increase -- from 207 workers last year to 254 workers this year.
Korea Herald
22-06-2025
- Business
- Korea Herald
Number of foreign workers with non-professional employment visas drop 21%
The number of foreign workers arriving in South Korea with non-professional employment visas dropped 21 percent this year, according to government data Sunday, apparently hit by the nation's sluggish economic growth. According to the Ministry of Employment and Labor, the number of foreign workers arriving here with E-9 visas under the Employment Permit System stood at 28,520 as of June 10, down 20.9 percent from the same period last year. In particular, the number of foreign workers with E-9 visas employed in the manufacturing sector slipped 25.8 percent on-year to 21,443, the data showed. A ministry official attributed weaker economic growth to the "decline in demand for foreign workforce." The Bank of Korea has cut its outlook for South Korea's economic growth this year to 0.8 percent, citing sagging consumption and slowing export growth amid uncertainties stemming from Washington's tariff measures. (Yonhap)
