
E-9 foreign worker arrivals plunge 21% amid economic slump
The number of foreign workers entering South Korea under the non-professional employment visa dropped by 21 percent in the first half of this year compared to the same period last year amid growing concerns over a slowing economy.
According to the Ministry of Employment and Labor, the number of workers arriving in Korea under E-9 visas through the Employment Permit System totaled 28,520 as of June 10, down 20.9 percent from the 36,048 who entered during the same period last year.
The Employment Permit System is a government program that allows employers facing chronic labor shortages to employ qualified foreign workers.
Foreign workers who are employed under the Employment Permit System receive the E-9 visa and work in industries such as agriculture and livestock, fishing, as well as construction, manufacturing, services, mining and forestry.
According to the Labor Ministry, the number of workers coming into Korea under the E-9 visa sharply declined during the COVID-19 pandemic, but rebounded in 2022 and 2023, reaching totals of 88,102 and 100,148 workers in those years, respectively.
However, the number fell again in 2024 to 78,025 -- well below the government-set cap of 165,000 foreign workers.
'The economic slowdown has had an impact on demand for foreign workers, leading to the decrease,' said a Labor Ministry official.
While an annual quota is normally set by the government, only 21.9 percent of the 130,000-person cap for this year has been filled so far, according to the Labor Ministry.
When excluding flexible allocations for specific sectors, 29.1 percent of the 98,000 available slots have been filled.
By industry, the manufacturing sector -- which typically takes up the largest share of E-9 visa holders -- saw a significant drop in new arrivals. While a total of 28,887 workers were admitted in the manufacturing sector in 2024, the number fell 25.8 percent this year to 21,443.
Other industries also recorded notable declines.
A drop of 21.7 percent in the number of workers under the E-9 visa was seen in the fishing sector, while the construction sector saw a decrease of 33.1 percent compared to last year.
Only the agriculture and livestock sector and the service sector saw an increase in worker numbers. However, these gains were small and were not enough to offset the broader decline.
The agriculture and livestock sector saw a 19.3 percent increase -- from 3,379 laborers in the first half of 2024 to 4,031 in the first half of 2025 -- and the service sector saw a 27.5 percent increase -- from 207 workers last year to 254 workers this year.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Korea Herald
16 hours ago
- Korea Herald
E-9 foreign worker arrivals plunge 21% amid economic slump
The number of foreign workers entering South Korea under the non-professional employment visa dropped by 21 percent in the first half of this year compared to the same period last year amid growing concerns over a slowing economy. According to the Ministry of Employment and Labor, the number of workers arriving in Korea under E-9 visas through the Employment Permit System totaled 28,520 as of June 10, down 20.9 percent from the 36,048 who entered during the same period last year. The Employment Permit System is a government program that allows employers facing chronic labor shortages to employ qualified foreign workers. Foreign workers who are employed under the Employment Permit System receive the E-9 visa and work in industries such as agriculture and livestock, fishing, as well as construction, manufacturing, services, mining and forestry. According to the Labor Ministry, the number of workers coming into Korea under the E-9 visa sharply declined during the COVID-19 pandemic, but rebounded in 2022 and 2023, reaching totals of 88,102 and 100,148 workers in those years, respectively. However, the number fell again in 2024 to 78,025 -- well below the government-set cap of 165,000 foreign workers. 'The economic slowdown has had an impact on demand for foreign workers, leading to the decrease,' said a Labor Ministry official. While an annual quota is normally set by the government, only 21.9 percent of the 130,000-person cap for this year has been filled so far, according to the Labor Ministry. When excluding flexible allocations for specific sectors, 29.1 percent of the 98,000 available slots have been filled. By industry, the manufacturing sector -- which typically takes up the largest share of E-9 visa holders -- saw a significant drop in new arrivals. While a total of 28,887 workers were admitted in the manufacturing sector in 2024, the number fell 25.8 percent this year to 21,443. Other industries also recorded notable declines. A drop of 21.7 percent in the number of workers under the E-9 visa was seen in the fishing sector, while the construction sector saw a decrease of 33.1 percent compared to last year. Only the agriculture and livestock sector and the service sector saw an increase in worker numbers. However, these gains were small and were not enough to offset the broader decline. The agriculture and livestock sector saw a 19.3 percent increase -- from 3,379 laborers in the first half of 2024 to 4,031 in the first half of 2025 -- and the service sector saw a 27.5 percent increase -- from 207 workers last year to 254 workers this year.


Korea Herald
20 hours ago
- Korea Herald
Korea's bad bank returns: Who it helps, who it hurts, and why now?
Debt aid for 1 million sparks debate over fairness and cost The South Korean government's plan to launch a 'bad bank' to ease the burden on individuals struggling with loan or debt repayment has drawn mixed reactions. Some view the initiative as a safety net for the financially vulnerable and a means to reduce the strain of bad debt on the broader financial system. Others raise concerns over moral hazard and potential fiscal pressure on the economy. What is bad bank? A bad bank is not a traditional bank; it is a special-purpose financial entity created to acquire and manage non-performing assets or bad loans from existing lenders. It purchases these loans at a small fraction of their original value and offers flexible repayment options based on the debtor's willingness and ability to settle. In many cases, it allows borrowers to repay only a portion of the principal, forgiving the remainder. During his election campaign, President Lee Jae Myung pledged to establish a bad bank to relieve the financial burden of indebted individuals, particularly small business owners whose debts surged during the COVID-19 pandemic. A significant portion of these debts, amounting to roughly 50 trillion won ($36.4 billion), is set to mature in September. Lee is no stranger to the concept. As mayor of Seongnam City, he founded Jubilee Bank, a nonprofit organization that provided debt relief for long-term delinquent borrowers. Bad bank v.2025 On Thursday, the Financial Services Commission unveiled the details of the proposed bad bank in conjunction with the announcement of a new supplementary budget. The bad bank will be established as a corporation under the Korea Asset Management Corporation, the state-run non-performing loan resolution agency. The government will allocate 400 billion won from the supplementary budget, with an additional 400 billion won expected from private financial institutions, including commercial banks. The initiative is aimed at providing debt relief to financially vulnerable individuals and small business owners who are more than seven years overdue on unsecured loans of up to 50 million won. According to government estimates, the program will target non-performing loans totaling 16.4 trillion won, potentially benefiting around 1.13 million individuals. After acquiring these delinquent loans, the bad bank will assess the debtor's income and assets to determine whether to write off or restructure the debt. Borrowers earning less than 60 percent of the median income, who have no disposable assets and are deemed incapable of repayment, will have their debts fully forgiven. Others who are considered highly unlikely to repay may see up to 80 percent of their principal reduced and will be allowed to repay the remaining balance over 10 years. The FSC said it plans to begin discussions with financial institutions regarding their funding contributions as soon as the supplementary budget is finalized, and will also revise relevant regulations to facilitate the launch. Mixed outlook Some experts view the bad bank as a way to create a social safety net, reduce financial strain and even stimulate private consumption, ultimately contributing to a healthier financial system. Specialized credit finance companies, such as credit card issuers and installment financing firms, are expected to benefit from the program, as the sale of distressed assets would improve their financial standing. 'Korea has experience operating bad banks during major economic crises. Based on this experience, a bad bank can help swiftly resolve non-performing assets and stabilize the financial system,' said Kim Sang-in, a credit analyst at Shinhan Securities. However, the initiative may burden private financial institutions, which are expected to contribute a total of 400 billion won. An FSC official said the regulator had reached a 'mutual consensus' with the sector regarding the scale of contributions. Still, some in the banking industry suggest this consensus may not be entirely voluntary. In 2023 alone, banks contributed a combined 2 trillion won to a similar initiative. 'As a licensed business, it is difficult for a bank to reject a request made by the regulator,' said an official at a local commercial bank.


Korea Herald
21 hours ago
- Korea Herald
Number of foreign workers with non-professional employment visas drop 21%
The number of foreign workers arriving in South Korea with non-professional employment visas dropped 21 percent this year, according to government data Sunday, apparently hit by the nation's sluggish economic growth. According to the Ministry of Employment and Labor, the number of foreign workers arriving here with E-9 visas under the Employment Permit System stood at 28,520 as of June 10, down 20.9 percent from the same period last year. In particular, the number of foreign workers with E-9 visas employed in the manufacturing sector slipped 25.8 percent on-year to 21,443, the data showed. A ministry official attributed weaker economic growth to the "decline in demand for foreign workforce." The Bank of Korea has cut its outlook for South Korea's economic growth this year to 0.8 percent, citing sagging consumption and slowing export growth amid uncertainties stemming from Washington's tariff measures. (Yonhap)