A survey found that about half of small and midsize businesses that hired foreign workers said it would be appropriate to restrict changes of business sites under the Employment Permit System (E-9) for one to two years and then allow them.
The Korea Federation of Small and Medium Enterprises on the 28th released the results of a survey on opinions regarding the reform of the system for changing business sites for foreign workers (E-9). According to the findings, 51.3% said the system should be revised, including "restrict changes for two years, then allow free movement" (31.6%) and "restrict changes for one year, then allow free movement" (19.7%).
"Maintain the current system (restrict changes of business sites for the first three years)" came to 48.7%, the largest single response.
The survey targeted 310 small and midsize businesses employing foreign workers to gather their views on the Ministry of Employment and Labor (MOEL)'s push to ease restrictions on changing business sites.
Under the current system, foreign workers under the Employment Permit System (E-9) must continue working at their initial business sites. However, they may change business sites if reasons such as dismissal by the employer, contract termination, violation of working conditions, or unfair treatment arise.
Some have criticized the restriction on changing business sites as excessively infringing on foreign workers' freedom of movement. In response, the Foreign Workforce Integrated Support Task Force (TF), which includes labor, management, government, and experts, is exploring ways to improve the system.
In this survey, 74.5% of small and midsize businesses said they had received requests from foreign workers to change business sites under the current system. The most common timing for such requests was "within one year" after entry, at 71.4%. Among them, 34.6% reported receiving requests "within three months."
The share of requests made within three months of entry was 37.8% outside the greater Seoul area, 8.3 percentage points higher than in the greater Seoul area (29.5%).
The most cited potential problem from easing restrictions on changing business sites was "worsening labor shortages at small and micro businesses," at 61.3%. Outside the greater Seoul area, the figure was 65.4%, 10.5 percentage points higher than in the greater Seoul area (54.9%). Regional small and midsize businesses expressed concern that labor supply-demand imbalances would worsen.
If easing the system is unavoidable, respondents cited as necessary complementary policies "prioritizing E-9 hiring for the affected corporations when an employee departs" (60.6%) and "imposing penalties for job changes clearly attributable to the worker and not to employer fault" (59.5%).
There were also many responses favoring "expanded support for small and midsize businesses, such as tax credits for dormitory construction and operating costs" (45.3%) and "disclosure of workers' history of changing business sites" (40.9%).
Yang Ok-seok, head of the Workforce Policy Division at KBIZ, said, "This survey raised concerns that if changing business sites becomes freer, labor shortages could worsen for small and micro businesses and in regions facing population decline," adding, "A balanced reform is needed that protects the rights of foreign workers while considering a sustainable operating environment for small and midsize businesses."