Some large corporations and public corporations are struggling to find expatriates to be dispatched to and work at overseas branches or subsidiaries. Expatriate posts abroad were once coveted, but as people marry later and a culture that values work-life balance takes hold, the number of applicants is falling.
On the 8th, multiple business community sources said, "Competition for expatriate selection is not as high as it used to be. Interest in expatriate posts is gradually waning."
The Korea Trade-Investment Promotion Agency (KOTRA), established to support Korea's exports, also said the number of employees seeking to go overseas has declined. KOTRA operates a total of 131 overseas trade offices around the world, including in Europe, China, North America, and Africa. One official said, "KOTRA's work is on the ground overseas, but more employees are saying they won't go at all. Korea has become a better place to live, and for married couples with dual incomes, some are reluctant because they would have to go alone."
At trading companies that broker a wide range of goods and services worldwide, more employees are also reluctant to work overseas. An employee at a large trading company said, "Working abroad can help with children's education, but as people marry later these days, some who would go overseas at that time have preschool-age children, and in those cases they may avoid overseas assignments."
The rise in dual-income households is another reason interest in expatriate posts is declining. If one spouse becomes an expatriate and the family moves overseas together, household income falls. Another trading company employee said, "If a spouse fully takes on housework or has a job that allows for easy leave, many go as expatriates."
According to Statistics Korea, as of last year the share of dual-income couples was 48.2%. Among people in their 30s (61.5%) and 40s (59.2%), the age groups that most often become expatriates, the dual-income rate is around 60%.
There is a stronger tendency in manufacturing to avoid expatriate assignments. That is because manufacturing expatriates are often dispatched when building new factories or business sites overseas to carry out stabilization work. A battery company official who was deployed during the stage of building factories in the United States and Hungary said it "felt like charging headfirst into bare ground."
In Korea, fixed working hours are possible, but abroad that is often not the case. As managers, expatriates must oversee local operations while also communicating with headquarters.
Reduced allowances for expatriates are another factor. In the past, companies often fully covered housing costs and children's international school expenses, but most now set caps. A business community source said, "As the number of expatriate applicants declines, instead of posting broad openings, we are selecting expatriates by recommending people who have proven reliable."