A survey found that 93% of domestic small and midsize companies are hiring foreign workers because it is difficult to recruit domestic workers.
The Korea Federation of Small and Medium Enterprises announced on the 16th the results of the "2025 employer survey on hiring foreign workers," conducted among 503 small and midsize companies with 50 or more employees that employ foreign workers.
According to the survey, 93.8% of respondent corporations said they hire foreign workers because it is difficult to recruit domestic workers. By contrast, only 2.6% cited labor cost savings as a reason for hiring foreign workers, indicating that foreign workers under the employment permit system are seen less as an expense-cutting measure and more as a key solution to the structural labor shortage driven by declining birthrates and an aging population.
Among respondent corporations, 98.2% said they plan to "maintain or expand" the number of foreign workers they employ, and those planning to expand said they intend to hire an average of 6.5 people.
In particular, regarding the outlook for demand under the employment permit system over the next three years, "increase" came in at 55.5%, "maintain current level" at 41.7%, and "decrease" at only 2.8%. This suggests that more than one out of two small and midsize companies has a positive view of the economy going forward, and that demand for foreign workers is expected to continue.
Among respondent corporations, 60.8% said they prefer foreign workers of "the same nationality as their existing workers." This appears to reflect a judgment that hiring workers of the same nationality is efficient from a workforce management perspective. They also said that while it is difficult to verify diligence and character during the selection stage for foreign workers, they choose countries based on direct hiring experience or recommendations from their network.
Meanwhile, the main difficulties cited with the transition to skilled foreign personnel (K-point E74), implemented since September 2023, were insufficient infrastructure for the Test of Proficiency in Korean (TOPIK) and the Social Integration Program (KIIP) (27.4%), and the burden of various administrative expenses (20.8%). Other opinions pointed to inconvenient paperwork procedures and use of institutions (immigration offices, employment centers, etc.) (12.5%), prompting calls to improve the convenience of administrative procedures.
Regarding the impact of the 4.5-day workweek, 42.1% of respondent corporations cited "difficulty meeting delivery deadlines." Another 24.1% answered "labor cost burden and expense increases," expecting challenges in operating the enterprise if the system is implemented.
Lee Myeong-ro, head of workforce policy at the Korea Federation of Small and Medium Enterprises, said, "At a time when small and midsize companies employing foreign workers are seeking to maintain or expand employment, the stable operation of the employment permit system is more important than anything else," adding, "With declines in production and sales at small and midsize companies expected due to the introduction of a 4.5-day workweek, the characteristics of each small and midsize industry and company size, as well as voices from the field, should be considered before any discussion of the system."