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.

Yonhap | English | News | Jan. 23, 2026 | North Korea

South Korean President Lee Jae Myung revealed that North Korea is producing enough nuclear material annually to build 10 to 20 new nuclear weapons, emphasizing the critical need to resume diplomatic talks with Pyongyang to curb its nuclear weapons program. This disclosure, considered rare and based on classified intelligence shared by South Korean and U.S. agencies, highlights North Korea's ongoing expansion of its nuclear arsenal.

North Korea is operating highly enriched uranium production facilities in Yongbyon and Kangson, along with plutonium production at Yongbyon. These facilities can generate dozens of kilograms of nuclear material a year, sufficient for multiple weapons. Estimates from the Korea Institute for Defense Analyses indicate North Korea possessed between 115 and 131 uranium-based weapons and 15 to 19 plutonium-based weapons as of 2025, potentially rising to 216 uranium-based and 27 plutonium-based weapons by 2030, and further increasing through 2040.

President Lee stated that while complete denuclearization is the ideal outcome, the reality suggests North Korea is unlikely to abandon its nuclear program voluntarily. He proposed a practical approach starting with halting North Korea’s nuclear activities, then pursuing gradual reductions, and ultimately aiming for full denuclearization. Lee’s use of the term "disarmament" signals a renewed push to bring North Korea back to negotiations, despite Pyongyang’s firm stance that its nuclear arsenal is non-negotiable and essential for national security.