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Communication the key issue for SMEs employing foreign workers in Busan and Ulsan, survey finds

Published: 23 Oct. 2024, 12:36 Updated: 23 Oct. 2024, 16:20

WOO JI-WON
[email protected]

People Power Party leader Han Dong-hoon talks with foreign workers in Ulsan. [YONHAP]

Communication has emerged as the most challenging issue in managing foreign laborers for small- and medium-sized enterprises (SMEs) in Busan and Ulsan, according to a recent survey by a small business support organization.

The finding comes from a survey conducted by the Korea Federation of Small and Medium Business (KBIZ), which surveyed 84 SME manufacturers in Busan and Ulsan that employ foreign workers.

In the survey, 44 companies, or 52.4 percent, cited communication as the primary difficulty in managing foreign workers.

Personnel expenses ranked as the second most challenging issue, with 17.9 percent of respondents citing this, followed by frequent requests from workers to change work locations, which affected 16.7 percent of firms.

Regarding dormitory expenses, 58.3 percent of firms reported covering the full cost for foreign workers, while 31 percent said they share the expense with the employees. The remaining 10.7 percent said workers were responsible for the entire cost themselves.

Most SMEs bear the cost of meals for the workers, with 73.8 percent of the companies fully paying for meals, while 23.8 percent share the cost with their workers.

Foreign workers earn an average of about 2.89 million won ($2,100) per month, which includes a base salary of 2.15 million won and an additional 740,000 won from overtime.

“The rising labor costs and incidental expenses associated with the increased use of foreign workers are becoming a growing burden for small businesses,” said Heo Hyeon-do, Busan and Ulsan SME Chairman of KBIZ, who emphasized the need for new policies to help foreign laborers settle at SMEs.

BY WOO JI-WON [[email protected]]