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9 in 10 SMEs hire foreigners due to difficulty in local recruiting: KBIZ

Published: 16 Sep. 2025, 15:23 Updated: 16 Sep. 2025, 18:29

Foreign students take part in on-site job interviews during the 2025 Job Fair for International Students in Busan at Bexco in Haeundae District, Busan, on Aug. 19. [YONHAP]

Nine out of 10 small- and medium-sized enterprises (SMEs) in Korea that hire foreign workers said they do so because of difficulties recruiting domestic employees, a new survey showed.

On Tuesday, the Korea Federation of Small and Medium Business (KBIZ) released the results of a survey of 503 companies with 50 or more employees that employed foreign workers in 2024.

Among the surveyed companies, 93.8 percent said the primary reason for hiring foreign workers was the difficulty of recruiting Korean employees. A vast majority, or 98.2 percent, said they plan to maintain or expand the employment of foreign workers — with 38.2 percent planning to expand and 60 percent to maintain current levels. The companies planning to expand said they expect to hire an average of 6.5 additional workers.

When asked about their outlook on demand for foreign workers under the Employment Permit System over the next three years, 55.5 percent said it would increase. Another 41.7 percent expected demand to remain unchanged, while only 2.8 percent anticipated a decrease.

About 60.8 percent of respondents said they prefer to hire foreign workers of the same nationality as those currently employed at their companies. KBIZ interpreted this as a preference rooted in management efficiency.

The most commonly cited obstacle to switching skilled foreign workers to the long-term E-7-4 visa was a lack of infrastructure, including Korean language proficiency tests and the Social Integration Program, selected by 27.4 percent of respondents.

“The launch of the new administration has fueled optimistic expectations for an economic rebound among SMEs hiring foreign workers,” said Lee Myung-ro, the head of KBIZ’s SME Labor Policy division. “As hiring plans are expected to be maintained or expanded, we hope the Employment Permit System will be managed stably to ensure a timely labor supply.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KANG KI-HEON [[email protected]]