Rising Reliance on Foreign Workers in Korea's Vital Manufacturing Sector | Be Korea-savvy

Rising Reliance on Foreign Workers in Korea’s Vital Manufacturing Sector


Researchers have noted that the Ppuri industry is grappling with chronic labor shortages and an aging workforce due to low wages and poor working conditions, which deter young people from entering the field. (Yonhap)

Researchers have noted that the Ppuri industry is grappling with chronic labor shortages and an aging workforce due to low wages and poor working conditions, which deter young people from entering the field. (Yonhap)

SEOUL, Oct. 7 (Korea Bizwire) –The Ppuri industry, which is crucial for the Korean manufacturing sector, is expected to rely more on foreign workers. This industry encompasses various manufacturing processes like casting, mold making, plastic processing, welding, surface treatment, and heat treatment.

Recent data on the Korean labor market shows that 9.2 percent of workers are foreigners, and workers aged 50 and older make up 33.8 percent of the total workforce.

A 2022 Workforce Survey of Root Industries reported that there were approximately 720,000 workers in major root industries, including casting, mold making, heat treatment, welding, robotics, and sensors, as of the previous year.

Nearly half (49.0 percent) of these workers were employed in businesses with 50 or fewer employees. 32.0 percent were in their 40s, 25.1 percent in their 50s, 23.7 percent in their 30s, and 8.7 percent in their 60s and older, according to a publication called “Local Industry and Employment.”

In the Ppuri industry, around 66,000 foreigners were employed, constituting 9.2 percent of all Ppuri workers. The majority (75.8 percent) worked in basic processing, 23.9 percent in material diversification, and 0.3 percent in intelligentization.

One of the primary reasons for hiring foreign workers was to fill positions that Koreans didn’t want, like monotonous, repetitive tasks and jobs with unfavorable working conditions, according to 36.1 percent of respondents. This was followed by cost savings and lower employee turnover.

The main challenges in employing foreigners included their lack of experience and knowledge in related tasks, difficulties in on-site communication, and the tendency to switch to other companies due to wage differences.

Researchers have noted that the Ppuri industry is grappling with chronic labor shortages and an aging workforce due to low wages and poor working conditions, which deter young people from entering the field. This, in turn, exacerbates turnover and raises uncertainty about the availability of foreign labor.

Kevin Lee (kevinlee@koreabizwire.com)

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