2011 UNPSA
I. Introduction of Republic of Korea and HRD Korea II. Migrant Labor and Employment Permit System of South Korea III. Main Accomplishments IV. Vision
Introduction of HRDKorea Name : Human Resources Development Service of Korea Location : Seoul Classification : Public Organization (Affiliated by Ministry of Employment and Labor) Focus : EPS, Continuing Education, National Qualification, World Skills Olympics, Employment Abroad
Foreign Presence As of end of December 2010 Total Foreign Presence (1,261,415) (Unit : Persons) Foreign Labor 취업비자 (684,151) Low-Skilled(460,208) * Foreign Labor = With Labor Visas Ethnic Koreans(282,662) 22% 14% of the 180,000 foreign workers in the ROK, hired by EPS
Foreign Presence Trends (Unit: 1,000 persons) (Unit: %) Globalization has brought increased foreign labor along with increased total foreign presence
Allows Korean employers who have failed to hire domestic workers to employ migrant workers legally
I. Government to Government (G2G) system II. Legitimate employment in South Korea III. No discrimination, equal protection as domestic workers * minimum wage (976,320 KRW per month & 44hours per week), severance pay, national medical insurance IV. Job Sectors (Manufacturing, Construction, Agriculture & Livestock, Fishery, Service) V. Insurance Provision (4 types including National & EPS) VI. Employment for 3 years with possible extensions up to 5 years
Countries A Total of 15 Governments Have Signed EPS MOUs Vietnam, the Philippines, Thailand, Indonesia, Mongolia, Sri Lanka, PRC, Nepal, Uzbekistan, Pakistan, Cambodia, Bangladesh, Kyrgyzstan, Myanmar, Timor-Leste
Background Dec 1993 : Industrial Training System (trainees) Aug 2004 : EPS implemented as a simple function foreign labor import system *Jan 1 2007 : ITS cancelled, foreign labor systems consolidated to EPS Protection of Native Employment Opportunities Resolve 3D and Small & Medium Manufacturer Industry Labor Shortage Prevention of System Corruption and Increased Transparency of Process
1 Nontransparent Employment Process by Private Interests - No Institutional System in Place Limited Employment + High Employment Demand Excessive Fees - Brokers Held Decision-making Power on Employment Commissions Charged for Employment Advantages Illegal Lobbying to be Selected as Brokers Excessive Fees and Fraud to Recoup Lobbying Expenses
2 Illegal Sojourn Chosen to Recoup High Initial Costs -Thousands of dollars paid to brokers for employment in Korea Debts and loans (Average Costs $3,509) - Desertion at training facilities to recoup debts Unable to leave Korea without resolution of debt
3 Inadequate Legal Protection System -Trainees not workers Legal protection for workers not provided * Less than minimum wage, unpaid benefits, violence Human rights abuses more prevalent with increased illegal sojourn
Employers : No chance to choose outstanding foreign labor, interrupted production due to desertion, illegal sojourn, increased hiring costs(legal costs, higher wages) Foreign Worker : human rights abuses, high employment costs South Korea : diminished national image, distorted labor market, increased social costs Origin Countries : unstable, nonstrategic labor exports, corruption impeding social development, citizenry rights abuses
Breaking Vicious Cycle by Preventing Recruitment Corruption
1 Innovative Recruitment Structure 2 Systematic Management through Computerized Information System 3 Build Cooperative Relationship with Origin Countries 4 Monitoring of Selection Process
1 Innovative Export Structure Excludes private interests, executed by public institutions Equal opportunities to all Official selection process, build worker-pool Korean language proficiency, evaluation of skill levels(since 2009) Transparent, fair employment process cost process made public, direct selection and contract by employers and workers, contract and immigration process made public on internet
2 Systematic Management through Information System Real-time connection between export country and ROK Direct contract between employer and worker, process of contract and immigration made public Enhanced efficiency in public administration Direct connection to 15 countries with limited organization andcosts Main Information Systems EPS(Employment Permit System) : Foreigner Management System SPAS(Sending Public Agency System) : Job-Seeker Roster Transfer TOPIK-S(Test of Proficiency in Korean System) : Korean Language Proficiency Exam Management
Internal User Homepage User Foreign Worker User Immigration Process MOEL Employment Permit Management Sanding Agency HRDKorea SPAS Job-Seeker roster registration, transfer Insurer Information Connection Immigration Office EPS & SPAS development and management : Korea Employment Information Service *Independent from HRDKorea since 2006 User Proxy Institutions Paperwork Proxy Service Vocational Training Institutions Employment Education Management
Exam Content : listening + reading (50 Qs) Cost : $24 Administrator : HRD Korea Method of Administration : PBT(OCR), CBT(Bangladesh, Cambodia, Thailand) * Vietnam, Uzbekistan in process Exam Participants : 1~2 exams per year per country, 250,000 total (2010) * selection size determined by job-seeker roster circumstances, advertised in major daily publications Role of Institutions - Sending Agency : registration, exam location preparation, notification - HRD Korea : exam preparation, publication, seat assignment, exam supervision, scoring, notification of results TOPIK-S : registration form (OCR) decode, scoring (OCR), seat assignment, form publication (photos, confirmation number etc), management of result data etc
3 Build Cooperative Relationship with Export Countries MOU between participating governments - Sending agencies assigned (public institutions) - Costs negotiated with ROK MOEL, made public as a rule - Main rules on job-seeker roster management - Rules on employment contracts (responsibilities of Sanding Agency, direct explanation to workers etc) - Pre-training, visa process, immigration support process - Employment support after entry for foreign workers - Efforts to Enhance the Transparency and Efficiency of the Sending and Receiving Process
4 Monitoring of Selection Process HRD Korea employees dispatched to origin countries - Consulting on employment process, monitoring of corruption Continuous monitoring of foreign workers in Korea -Survey immediately after entry into South Korea (Reporting of transmission costs, inappropriate costs) Monitoring of transmission costs - Regular survey of official transmission costs Sanctions imposed when corruption discovered Demand for reform Suspension of labor selection process
Korea EPS-TOPIK (HRD Korea) Approval of job seekers roster (HRD Korea) Application for the employment of foreign worker(s) (Employer ESC of MOEL) Selection of workers and Employment Permit issuance (Employer ESC of MOEL) CCVI Issuance (HRD Korea MOJ) Set a Schedule for entry SPAS EPS Labor Contract Signing Sending Country Job application (Job Seekers Sending Agency) Ask agreement Suggested Contract (Sending Agency Job seekers) Pre-Departure Training (Sending agency Job seekers) Visa Issuance (Sending agency Embassy) Supporting Entry (Sending Agency Job seekers) Entry of Workers
Decreased Costs Decreased Illegal Sojourn $3,509 63.8% Reduced to 1/3 $1,097 Industrial Trainees Reduced to 1/10 7.6% EPS Workers 2001 2007 2002.12 2010.10 Source : Yoo, Kil-sang, 2007, Evaluation on the First Three Years Performance of Korea s Employment Permit System Source : Korea Immigration Service, www.immigration.go.kr, statistics by visa carriers
Overdue Wage Breach of employment contract by company 36.8% Reduced to 1/4 9% 44.2% Reduced to 2/3 29% 2001 2007 1998 2010 Source : Yoo, 2007. Source : Lee, Jung-hwan and Kim Seok-ho, 2010, 2010 Survey on Employment and Living Conditions of Migrant Worker in Korea, HRD Korea(In Korean)
(Unit : %) Source : Small & Medium Business Administration, Survey on Small & Medium Business Note : 1) Small&Medium Manufacturers with 5-300employees(8,000 surveyed out of total 111,060) 2) Labor Shortage = Shortage/(Currently Employed + Shortage) Solutions Currently Considered for Labor Shortage Type Percentage(%) Production Automation 29.7 Expansion of Contract Employment 26 Improved Wage and Welfare Conditions 24.3 Expansion of Foreign Labor 19.7 Expansion of Female Labor 14.6 Administrative Automation 10.3 Expansion of Excluded-from- Military-Service Labor 9.3 Transfer of Domestic Production Facilities 8 Expansion of Silver Labor 5.5 Considering Transform Business 3.9 Production Transfer Abroad 1.2 Source : Small & Medium Business Administration, Results on 2010 Survey on Small & Medium Business * Multiple selection allowed Decreases in labor shortages could be explained by a number of reasons including decreased manufacturers or automation but the contribution of the insertion of foreign labor is significant
(Unit : Comparative Index with Domestic Labor as 100) Foreign Labor Productivity increased after the implementation of EPS, and while labor costs also rose this can be interpreted as the effects of a stabilized foreign labor culture
Equal Opportunities Decreased Costs Workers Legal, strategic hiring of migrant labor Ensured High-Quality Emplo labor yers Enhanced Rights of Citizens Introduction of sophisticated public administration Origin Countr y South Korea Solution of labor shortage problem Reduced social costs
Origin Country South Korea Korean Proficiency Exam Skills Test Customized Training Transparent Selection Monitoring of Early Immigration Arbitration of conflict and troubles at employment Communities by Country Improved Relations Improved National Brand Value Employment at local affiliates of Korean companies Low-cost new business Returnee Network Reemployment Guidance New Business Support Support for job-seekers and transfer of employer Vocational & New Business Training Successful Working Life
Positive Foreign Labor Support Cycle Transparent selection -successful employment -reassimilation after return Warm Multi-Ethnic Society Shared Development With Sending Countries Shared experience of economic development and escape from poverty Transfer of funds and Korean technology Social development and Diminished prejudice against escape from poverty at origin foreign labor as temporary countries via returning workers labor or adjuncts of industrial development Contributors to Korean economic development