Changing Employment Permit System Foreign Workers to Skilled Technical Workers
Bongsoo Jung, a Korean labor attorney at KangNam Labor Law Firm
I. Introduction
The Employment Permit System (EPS) operates on the core principles of supplementing local labor and short-term employment cycles. This means that foreign workers are brought in to fill positions that Koreans are unwilling to take, often referred to as 3D jobs (Dirty, Dangerous, and Difficult). The goal is to allow them to work temporarily, to a maximum period of 4 years and 10 months. This often creates a dilemma for small and medium-sized businesses because, by the time a foreign worker becomes skilled and valuable to the business, their employment period expires, and they are required to leave. To address this, businesses have frequently requested that the government allow skilled foreign workers to remain long-term. In response, the government introduced a special point-based visa system for non-professional foreign workers (E-9) who will stay beyond 4 years. From 2017, the government began issuing the E-7-4 visa, which allows long-term stays for skilled technical workers. Initially, this visa was available to a limited number of workers, but due to chronic labor shortages in the 3D industries and concerns about the nation’s low birth rate, aged population, and the risk of local area extinction, the government has significantly expanded its use. On September 25, 2023, the Ministry of Justice announced major plans to expand the number of skilled technical workers (K-Point E-7-4) to 35,000 and relaxed the eligibility criteria. This has drawn considerable attention from non-professional foreign workers (E-9) who are currently in Korea. The main reason for their interest is that this professional visa not only allows them to stay in Korea indefinitely, but also enables them to invite their family members.
This article will explore the background and current state of efforts to convert E-9 non-professional foreign workers to long-term skilled technical workers (E-7-4). We will examine the eligibility criteria for converting, the impact, and the limitations.
II. Limitations of the Employment Permit System
The Employment Permit System for non-professional foreign workers includes the general employment permit (E-9) and the special employment permit for ethnic Koreans (H-2). As of July 2024, there were 329,911 workers with the general permit and 96,790 with the special permit, bringing the total to 426,701. Seventeen countries participate in the program, primarily from Southeast Asia, China, and countries that make up the former Soviet Union. According to a Ministry of Employment and Labor press release on November 27, 2023, the government plans to introduce 165,000 non-professional foreign workers (E-9) in 2024, the largest number ever.
The need for foreign workers remains high for businesses due to the severe labor shortages in industries that local workers avoid. With introduction of the skilled technical worker program, employers can now retain their workers, albeit with some restrictions, to avoid having to constantly hire new, inexperienced ones every few years.
Furthermore, the short-term employment cycle under the current Employment Permit System has resulted in a side effect of increasing the number of illegal foreign workers. Since the income earned in Korea by non-professional foreign workers is several times higher than what they would earn in their home countries, many choose to stay in Korea even after their authorized contract period ends, seeking to continue earning higher wages rather than returning home. As of the end of 2023, the number of illegal residents was maintained at 423,000 and is continuing to grow. Among these, 77.9% are reported to be non-professional foreign workers (Ministry of Justice, Immigration and Foreign Policy Bureau, 2023).
III. Current Status and Selection Criteria for the Skilled Technical Worker Program
1. Expansion of Skilled Technical Workers
Non-professional foreign workers typically sign an initial contract for 3 years and may extend it for up to an additional 2 years. After this period, they must leave Korea. From the perspective of business, this causes problems because companies constantly have to let go of skilled foreign workers just as they become skilled, and then begin the training process all over again with new ones. In contrast, skilled technical workers (E-7-4) are given professional visas, which means their stay does not have to be short-term.
On September 25, 2023, the Ministry of Justice announced an "Innovative Plan to Increase Skilled Technical Workers Program to 35,000 Workers (K-point E-7-4)." According to this plan, foreign workers who enter Korea on a non-professional visa (E-9) and have been working continuously for more than 4 years at the same business can now apply for the skilled technical worker visa (E-7-4). Additionally, after 5 years of residency, meeting specific requirements for income, and other criteria, they may gradually qualify for a resident visa (F-2) or even permanent residency (F-5). This policy aims to provide a structured pathway for non-professional workers to become skilled technical workers and secure long-term residence in Korea.
Foreign workers eligible for the skilled technical worker (E-7-4) visa include those under the Employment Permit System (E-9), Seafarer Employment (E-10), and Visiting Employment (H-2) visas. In practice, however, the vast majority (over 98%) of skilled technical workers have transitioned from the Employment Permit System (E-9).
2. Selection Requirements for Skilled Technical Workers
Selection is based on a point system, where applicants must score at least 200 of 300 possible points to be eligible. The score distribution is as follows: a certain income level (up to 120 points), proficiency in the Korean language (up to 120 points), and age (up to 60 points). The details include:
1. Foreign workers must have stayed in Korea for over 4 years under one of the eligible visas (E-9, E-10, or H-2) and be currently employed at their workplace.
2. Their annual salary at the current workplace must be at least KRW 26 million, with a contract for employment for at least 2 more years as an E-7-4 worker (For agriculture, livestock, and fishing, the annual salary requirement is KRW 25 million).
3. They must have worked for at least 1 year at their current workplace and received a recommendation from the employer.
4. They must score at least 50 points each in the basic categories of (a) average income and (b) Korean language ability.
However, the following individuals are ineligible:
1. Those who have received a legal fine of KRW 1 million or more;
2. Those with overdue taxes (they may apply upon full payment of their taxes due);
3. Those who have violated the Immigration Control Act four or more times;
4. Those with a record of staying in Korea illegally;
5. Those considered a risk to Korea’s interests or public safety;
6. Those deemed likely to disrupt economic or social order or commit actions against public morals.
■ Breakdown of the 300-point Criteria System for Skilled Technical Workers
1. Average Income (Recent 2-Year Average): Up to 120 points
KRW 25 million KRW or above KRW 35 million or above KRW 50 million or above
Points 80 120
2. Korean Language Proficiency: Up to 120 points
Level 2/Stage 2/41-60 Points Level 3/Stage 3/61-80 Points Level 4/Stage 4/81 Points or above
Points 50 80 120
→ Includes TOPIK (Test of Proficiency in Korean: Level 2, 3, or 4 and above), Social Integration Program (Stage 2, 3, or 4), and Social Integration Program Preliminary Evaluation Scores (41-60, 61-80, or 81 and above).
3. Age: Up to 60 points
19-26 years 27-33 years 34-40 years 41 years and above
Points 40 60 30 10
■ Additional Points and Deductions
Recommendation ③
At least 3 years at current workplace ④
At least 3 years in a population-declining or rural area ⑤
Certification or domestic degree ⑥
Domestic driver’s license
① ②
Hiring company
Central gov. Regional gov.
30 30 50 20 20 20 10
Overlapping of items ① to ⑥ is allowed (However, if there are multiple recommendations from central ministries or local governments under item ①, only one will be recognized).
Deductions 1 Time 2 Times 3 Times or more
① Legal fine of less than KRW 1 million (Maximum
-20 points) -5 -10 -20
② History of restricted stay due to overdue taxes (Maximum -15 points) -5 -10 -15
③ Violation of the Immigration Control Act (Maximum -15 points) -5 -10 -15
IV. Effects and Limitations of Expanding the Skilled Technical Worker Program
Since Korea began introducing foreign labor in 1993, SMEs in the manufacturing, agriculture, fishing, and construction industries (often referred to as 3D industries) have consistently faced labor shortages. The reliance on short-term, non-professional foreign workers has not been able to resolve the chronic labor shortages in these industries, especially with the ongoing low birth rates and fast-aging population. In this context, if non-professional foreign workers can demonstrate skill at specific workplaces, maintain a certain wage level, and meet the necessary Korean language and cultural proficiencies, their long-term residency will greatly alleviate the severe labor shortages in these vulnerable industries. Many non-professional foreign workers prefer long-term stays and aspire to bring their families to Korea to establish themselves. Furthermore, expanding the skilled technical worker program can also help prevent the increase of foreign workers overstaying their visas.
To continually secure skilled technical workers (E-7-4), support is needed to help non-professional foreign workers (E-9) transition to skilled technical worker status under the point-based system. The maximum 300 points are divided into average annual income (120 points), Korean language proficiency (120 points), and age (60 points). In reality, an applicant's score is largely determined by their Korean language ability, making this a crucial determiner of eligibility. Korean language proficiency is assessed through TOPIK (Test of Proficiency in Korean), participation in the Social Integration Program, and evaluation scores from the same program. Evening or weekend classes, either in-person or online, can be offered via the employment insurance vocational skill development support funds so that foreign workers can receive the education they need.
The assurance of long-term residency for skilled technical workers (E-7-4) offers stability, but there are legal limitations in terms of protection as a foreigner. First, the E-7-4 visa is a type of professional visa (E-7) that guarantees residency based on employment. In other words, residency is only secured for as long as the visa-holder has a job. When the employment relationship is terminated, the worker must move to a different workplace. Before having to get another job, they can switch to a job-seeking visa (D-10) to temporarily extend their stay. However, if they are unemployed for an extended period or are dismissed during the employment period, they are subject to restrictions under the Immigration Control Act, which requires them to leave Korea. Second, while they are allowed to invite family members to reside with them, the accompanying spouse is not permitted to work without a separate work visa. There needs to be consideration under the Immigration Control Act to allow the issuance of Employment Permit System (E-9) visas for spouses, enabling them to have jobs and engage in economic activities in Korea.
V. Conclusion
The transition of non-professional foreign workers (E-9) to skilled technical workers (E-7-4) is expected to resolve labor shortages in small and medium-sized enterprises and enhance industrial competitiveness. For non-professional foreign workers, this program offers hope that, in accordance with their efforts, they can establish a life in Korea and have a pathway to becoming a skilled technical worker. This system, therefore, significantly helps to open up the doors for foreign workers to develop personally and settle in Korea. As non-professional foreign workers prepare to become skilled technical workers, they will be motivated to learn Korean and participate in the Social Integration Program, helping them to quickly adapt to Korean culture and life. Through these preparations, they can then become full members of Korean society. It is now time for Korean society, in turn, to welcome foreign workers as neighbors and to foster a multicultural society where they can play an essential role. This acceptance and inclusivity are necessary for the sustainable development of a multicultural society in Korea.
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