South Korea

Joongang Ilbo | English | News | Jan. 23, 2026 | UndeterminedInitiative

Seoul has discontinued its foreign caregiver pilot program launched in August 2024 due to ongoing controversies surrounding wages, working conditions, and legal protections for the recruited Filipino caregivers. The initiative aimed to address a shortage of child care workers caused by Korea’s low birthrate and to reduce child care costs while supporting women’s workforce participation. However, the program faced immediate challenges, including absenteeism by some caregivers, high service fees for families, and labor rights concerns amid ambiguous job definitions and visa constraints.

Caregivers in the program earned approximately half the average Korean monthly wage, with significant deductions leaving take-home pay low despite high costs charged to households. The program’s structure involved multiple stakeholders, including government bodies and private platform companies, which weakened worker protections, fostered rigid management controls, and contributed to dissatisfaction among caregivers. The E-9 visa system restricted workers’ employer mobility and residency security, exacerbating vulnerabilities inherent in the pilot.

The initiative revealed deeper systemic issues in Korea’s approach to migrant labor and care work, including fragmented oversight across ministries and undervaluation of caregiving jobs. Experts highlighted that improving domestic working conditions might better address caregiver shortages. Despite ongoing demand for child care, program critics argue that without coordinated reforms to labor policies and residency rights, integrating foreign caregivers effectively remains unlikely.

Korea Institute for International Economic Policy | English | AcademicThink | Jan. 23, 2026 | UndeterminedEmployment

South Korea is experiencing rapid demographic decline due to ultra-low fertility and accelerated aging, with its population projected to fall below 40 million by 2065. This demographic shift is intensifying labor market imbalances, with labor shortages expected to grow significantly across various sectors such as ICT services, healthcare, logistics, hospitality, and agriculture. Geopolitical tensions and technological advancements have further exacerbated these shortages, especially in high-tech industries. As a result, attracting foreign labor, both skilled and unskilled, is increasingly considered essential to alleviate workforce gaps, although challenges related to immigration policy rigidity and social consequences remain.

Empirical analysis of the European Union’s free labor movement regime revealed that increasing the share of immigrants reduces labor market tightness, with a 1 percentage point rise in immigrant share leading to a 10% decrease in labor market tightness. Low-skilled immigrants contributed to short-term employment increases, while high-skilled immigrants supported long-term growth in services. Some short-term adverse effects, including increased unemployment among low-skilled natives, were also observed. A parallel analysis of Korea’s expanded Employment Permit System (EPS), which increased foreign labor especially post-COVID, showed a reduction in labor shortages with a lag of about one year. However, no improvements in labor productivity were detected, indicating a need for policy adjustments such as allowing longer-term stays for foreign workers.

Policy recommendations include refining labor shortage assessments with more detailed, sector-specific data and improving immigration data integration for better policy analysis. Visa frameworks should be simplified into tier-based categories to enhance flexibility and support longer-term labor participation with pathways to settlement. Enhanced job matching through digital platforms and AI tools, along with stronger governance to prevent unfair practices, is advised. Finally, strengthening stay management and training systems for foreign workers—through digitalized monitoring, language instruction, vocational education, and workplace safety training—is recommended to improve productivity and workplace integration.

1500원 환율의 공습… 식탁 물가 '마지막 방어선' 무너졌다 [프라이스&amp]

Hankyung | Local Language | News | Jan. 23, 2026 | UndeterminedInflation

The South Korean government announced support measures including discounts on mackerel of up to 60% and plans to diversify import sources in response to a sharp rise in imported mackerel prices, driven by decreased catches in Norway and exchange rate effects. Import prices for major agricultural, livestock, and fishery products increased by more than 8% at the end of last year, with staple items such as napa cabbage, radish, and cutlassfish experiencing price surges of at least 50%, and in some cases doubling year-on-year. This raises concerns over grocery price inflation ahead of the Lunar New Year.

Data from the Korea Customs Service as of December showed import unit prices for 105 agricultural, livestock, and fishery products rose 8.5% year-on-year. Radish and napa cabbage prices surged by over 100%, and finished kimchi products rose nearly 20%, impacting costs for both households and restaurants. Seafood prices have also increased significantly; cutlassfish rose 54.3%, halibut 42.5%, octopus 35.2%, and mackerel 30.7%. These increases reflect both high absolute prices and substantial price pressures on consumers.

Other imported items heavily reliant on foreign supply also saw steep price hikes. Frozen lamb surged 65.1%, chilled lamb 27.7%, pineapple rose 31.5%, and coffee prices increased 27.6%. These products have limited domestic alternatives, making consumers likely to bear these increased costs. Industry experts expect import unit price pressures to persist, largely due to complex global factors and especially the exchange rate which is nearing 1,500 won per US dollar, significantly impacting import costs.