"Demand for foreign labor is surging mainly in farming and fishing communities, manufacturing, construction and long-term care. Employers hire undocumented residents because of lower labor costs and flexible workforce adjustments, but rather than focusing only on crackdowns, policies should look for ways to utilize them."
Lee Gyu-yong, a senior researcher at Korea Labor Institute (KLI), said that strengthening crackdowns on undocumented residents alone cannot be the solution when demand and supply for undocumented residents remain uninterrupted. He noted that a significant number of undocumented residents have stayed in Korea for a long time, communicate well and are familiar with Korean culture, and there are employers who prefer them.
The senior researcher proposed selecting pilot areas to trial partial legalization of undocumented residents, saying, "Since the mismatch of labor demand and supply has worsened after the coronavirus and the working-age population has declined, the need for foreign labor is increasing." He said, "Because no social consensus has been reached on (undocumented residents), conducting pilot projects centered on specific regions or industrial complexes with many undocumented residents is also a method."
Kim Do-gyun, a special appointed professor at Jeju Halla University, said that designing policy in multiple stages such as crackdowns, voluntary reporting and legalization could reduce side effects. He said, "The start of legalization of undocumented residents or immigration policy requires building public sympathy and a detailed policy design composed of upper, middle and lower levels," and "Changes in immigration policy need a long-term perspective to analyze policy results and explain that they help the public and the nation." He also said, "The issue of undocumented residents is a matter not only for the Ministry of Justice or Ministry of Employment and Labor but for all ministries, the National Assembly and civic groups to consider."
As of January this year, the number of undocumented foreign residents living in the country was 394,000, accounting for about 20% of all foreign residents. That means one in five foreign residents is undocumented. The Ministry of Justice has been strengthening crackdowns since 2023 while implementing the "five-year plan to reduce undocumented residents," but it has not seen major effects.
Meanwhile, Korea has one of the world's highest levels of low birthrates and aging. If the current situation continues, Korea's total population is projected to be 36.22 million in 2072. Of these, the working-age population (ages 15-64) will fall from 36.74 million in 2022 to 16.80 million in 2072.
Ko Gi-bok, director of the Migration Rights and Culture Center for All, said enforcement of undocumented resident management should be strengthened and a U.S.-style individual taxpayer identification number should be introduced so it benefits the Korean economy.
He said, "According to the principle that where there is income there is tax, an identification number should be assigned so that undocumented residents can pay taxes on income like in the United States," and "it would supply labor to industries suffering from workforce shortages and allow the government to secure tax revenue and related statistics." He added, "Recently, some immigration duties, such as issuing visas to areas facing population extinction, have tended to be transferred to local governments, and transferring the authority to legalize undocumented residents to population-extinct areas could also be a method."
Han Jun-seong, a professor in the multicultural studies department at Gangneung-Wonju National University, said that considering the reality of demand for undocumented residents, options to grant them residence status should be explored. Han said, "There are not a small number of undocumented migrants who have lived in Korea long-term and built families," and "they are skilled workers who are familiar with Korean language and culture, and appropriate residence status should be granted to them."
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