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Dr.

Woo, Bong-Woo
HRD Korea
Contents
Overview of the EPS
Selecting foreign workforce
Foreign worker’s insurance, Sending Cost, Remittance
Sojourn Support
Return Support
Challenges and Issues
Key Achievements

2
Overview of the Employment
Permit System

3
History and Principles

Year Program Details


Introduction of the Overseas Investment Firm Skill Trainee
1991 6monthsoftraining,Canbeextendedforanother6months
System(November)
Introduction of the Organization-recommended Industrial Trainee As many as 10,000 trainees for small and medium businesses in 10
1993
System(November) manufacturingsectors
2000 IntroductionoftheTrainingEmploymentSystem(April1st) 1yearofemploymentpermittedafter2yearsoftraining
- Abolished Industrial Trainee System, announced plans to implement
2003 theEmploymentPermitSystemforforeigners (March29th)
-「ActontheEmploymentofForeignWorkers」Announced(August16th)
Initial Entry of 92 workers from the Philippines, Employment
2004 Enforcement of the Employment Permit System(August 17th) Management System made to operate under the Employment Permit
SystemforSpecialCases
Abolished the Industrial Trainee System, merging it with the
2007
foreigner Employment Permit System (January 1st)

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Expansion of Sending Countries and Designation of
Countries for small-scale industries

Year No. of Sending countries Sending Countries


2004 6 The Philippines, Thailand, Mongolia, Indonesia, Sri Lanka, Viet Nam
2006 9 Uzbekistan, Pakistan, Cambodia joined
2007 14 China, Nepal, Bangladesh, Myanmar, Kyrgyz Republic joined
2008 15 East Timor joined
2016 16 Lao PDR joined

Industry Country

Construction Thailand, Vietnam, Cambodia, the Philippines, Myanmar, Sri Lanka

Agriculture/Livestock Nepal, Vietnam, Thailand, Cambodia, Myanmar

Fishery Indonesia, Vietnam, East Timor, Sri Lanka, the Philippines

Service Mongolia, Uzbekistan

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Process of EPS

1.EPS Test of
2. Medical Check- 3. Job 4. Signing Labor 5. Pre-
Proficiency in
Korean (EPS-TOPIK), up application Contract departure
Skills Test, training
(Medical Center
Competency Test
⇔ EPS-TOPIK (Job seekers (HRD Korea (Sending Agency
(HRD Korea
Passers) ⇔ Sending Agency) ⇔ Sending Agency ) ⇔ Workers)
⇔ Job seekers)

10. Return 9. Sojourn 8. Employment 7. Entry of 6. Visa


Support Support Training & Workers Application
Workers Delivery & Insurance
(HRD Korea
(HRD Korea (HRD Korea (Training center ⇔ Sending (Sending Agency
⇔ Workers) ⇔ Workers) ⇔ Workers)
점수배점
Agency ) (제업/소수업)
⇔ Embassy)

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Korean Language Test (EPS-TOPIK)

Determine exam dates


Announcement Testapplicationsubmissions
(Ministry of Employment & Labor ⇒ (HRDK․Sending Agency)
⇒ (Job seeker→HRDK․Sending Agency)
Korea·HRDK↔Sending Agency)

Administration of Exams Marking,PassersAnnouncement Distribution of Score Reports


(HRDK․Sending Agency)
⇒ (HRDK)
⇒ (Sending Agency→Job Seeker)

* HRD Korea’s local EPS Center Representative monitors and supports overall administration of exams

① Person aged between 18 and 39


② Person who has not been convicted of imprisonment or heavier punishment
③ Person who have no record of deportation or departure orders, or record of
illegal stay in Korea
④ Person who is not restricted from departure of home country

① Test is comprised of Reading and Listening sections, with 25 questions each


② Total exam time is 70 minutes (Reading 40 M / Listening 30 M)
③ Test questions ask basic understanding on Korean society, basic knowledge on
work and industrial safety
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Medical check-up and job application

Medical Check-up Job Application


(Designated medical center) ⇒ (Job seeker→Sending Agency)
※Monitored by EPS Center Representative ※Monitored/supported by EPS Center Representative

① Sending country’s ministry of labor selects medical check-up agency, notifies HRDK
② Sending Country notifies job seekers of additional medical check-up upon entering Korea,
and workers must return at their own cost immediately if they fail the medical exam in Korea
③ Sending agency manages passers’ medical check-ups and their results

º Job seekers who pass medical check-up shall submit relevant documents to the Sending agency during the
designated period
① Job Application Form ② Copy of the EPS-TOPIK result ③ Copy of medical check-up results ④Copy of
passport ⑤Background check report ⑥ Certifications (Education, Qualification, Work Experience)
* Sending agency keeps submitted documents for 2 years, and to share with HRDK upon request
º When receiving job applications, sending agency must
- Notify job seekers that submitting job application “does not guarantee employment” and checks below
① Submitted his/her contact number ② Selected preference for occupational sub-category ③ If the personal
details on Job application, EPS-TOPIK result, English name in passport, passport number, photo, date of birth are
identical

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Signing the labor contract

Announce LC recipients, individual contact Accept/Reject LC, double-check


Send labor contract
(HRDK→Sending Agency) ⇒ (Sending Agency→Job seeker)
※Monitored/Supportedby EPS Center representative
⇒ personal information
(Job seeker↔Sending Agency)

Additional measures to those with


delayed LC signing/rejection decision
(Sending Agency↔HRDK)
⇒ Print/Share Labor Contract
(Sending Agency→Worker)

º Employers write-up labor contract after issuance of Employment Permit from Job
Center
º HRD Korea sends labor contract to sending agency through EPS System

º Sending Agency regularly checks arrival of labor contracts in SPAS


º Sending Agency announces above information on web pages, newspapers and make
individual announcements to job seekers through phone/email

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Signing the labor contract

º Sending agency fully explains recipients the terms and conditions of labor contract and
confirms his or her intentions in signing the labor contract
º Mandatory contents to be explained when signing LC
① Minor industries such as Fishery, Agriculture/Livestock, Construction have a separate rules/regulations from
Manufacturing industry on working hours, terms, conditions
② Maximum period of contract is 3 years, calculated from the date of entry to Korea
③ Workers can change workplace only with valid causes such as termination or temporary shutdown of
business
④ Workers cannot change the industry of work after entering Korea
º Sending Agency prints and issues labor contract to those who are willing to sign the LC
(Workers must carry the LC when entering Korea)
º HRD Korea’s EPS Center representative must regularly check whether the sending agency is
signing LC without confirmation/contacting workers

º Sending Agency enters LC signing results to SPAS within 14 days; selects cause of
refusal for those who did not sign the LC and notify HRDK
º HRDK can remove job seekers from the job seekers list : if he or she cancels signed LC, or
declines signing of LC without probable cause for twice or more

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Pre-departure training

º Ministry of labor from the sending country determines sending agency or relevant
governmental organization as pre-departure training institute and notify the designation to
the ministry of employment and labor Korea, and HRD Korea
º Workers who have signed LC must complete pre-departure training right after signing the LC

º Total : 45 hours or more


º Korean language : 38 hours
º Understanding Korean culture : 7 hours

º (Textbook) Can use materials such as textbooks HRDK provided or edited/translated books
according to sending country’s condition
º (Cost) Sending agency collects fees (actual expenses required for training) from workers

º Workers in agriculture/livestock industry will be quarantined to prevent infectious disease in


domestic animals
º Immunized during pre-departure training, enter immediately after quarantined for more than
11 days
º Clothes, shoes, personal affects will be sterilized before entering Korea
º Training on prevention of infectious diseases in domestic animals provided, certification of 11
training completion issued
Visa application and issuance

Additional measures for those with


Announce visa application Apply for visa
delayed visa issuance
(Sending Agency→Job seeker)
※Monitored by EPS Center ⇒ (Sending Agency→Embassy)
※Monitored/Supported by EPS Center ⇒ (Sending Agency↔HRDK)
representative representative ※ EPS Center representative requests/supports
expedited processing

º Sending agency regularly checks CCVI issuance status on SPAS


º Sending agency contacts workers with their CCVI issued, to prepare passport
and documents required for visa application

º After confirmation of CCVI issuance, sending agency immediately applies worker’s


visa to local Korean embassy

º Provide assistance to Sending agency for the application of visa withiht 1 week of
CCVI issuance
º Workers who haven’t applied for visa within 3 months of CCVI issuance are considered as
those who have given up, and will be removed from the job seeker’s list

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Entry / Training & Handover

Determine final entry list


Establishand inform entry plans Prepare for entry, notify entry after confirmation from
(Initial Entry List) ⇒ availability (Revised Entry list) ⇒ relevant agencies
(HRDK→Sending Agency) (Sending Agency→HRDK) (Name Tag List)
(HRDK)

Notify final entry list


Workers enter Korea
(HRDK→Employer․Relevant organization․Sending Agency) ⇒ (Sending Agency→HRDK→Training Institutes)
※Confirmed by EPS Center representative

º5 training institutes take over workers from HRD Korea at Incheon Airport
- Korea Labor Foundation (Mongolia, Vietnam, Thailand), KBIZ (Countries aside from Mongolia,
Vietnam, Thailand)
- National Agricultural Cooperative Federation (Agriculture/livestock sending countries), National
Federation of Fisheries Cooperatives (Fishery sending countries)
- Construction Association of Korea (Construction sending countries)
º Contents (More than 16 H)
- Korean conversation(2H), Work culture in Korea(2H), Relevant rules/regulations(4H), Grievance
counseling procedures(2H)
- Occupational safety & Health, Basic skills(6H)
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Sojourn Support / Return Support

EPS provides various sojourn support services to foreign workers to enhance


productivity of SMEs in resolving difficulties workers face in Korea such as
language barriers, cultural differences and conflict with employers
① Initial monitoring of workplace adaptation
② Support grievance resolutions
③ Provide vocational training
④ Counseling, grievance settlement (Call centers for counseling(1), Foreign
workers support centers (31))

Settlement of unskilled foreign workers give rise to overall social cost due to
illegal stay, illegal employment, human rights violation, overall degradation of
the quality of work for locals; to adhere to rules of return after 3 years of
employment, EPS implemented voluntary return program since 2011
① Return preparation support information sessions ② Return monitoring ③ Prior
notification to expirees ④ Establish returnees list ⑤ Hold information sessions to
support resettlement ⑥ Issue work experience ⑦ Organize “Return Job” system
⑧ Hold employment-recruitment sessions
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Employment Permit application conditions per industry

* Manufacturing : Businesses with no more than 300 employees or 8 billion KRW in capital
- Businesses with “small business confirmation” certificate from the Small and Medium Business
Administration can also apply for the EP
• Construction : Any construction business
- Except for the construction sites of Power plants, Steel mills, Petrochemistry construction with an
Industrial environment facility construction license
• Agriculture and Livestock : Crop cultivation, Livestock breeding, Crop cultivation
and livestock relevant services
- Allowed sectors/scale can be identified through the “Agricultural Company Registration(Change)
Confirmation” issued by National Agricultural Products Quality Management Service
• Fishery : Inshore and coastal fishing, Aquaculture, Extraction of salt
- Inshore and coastal fishing : Verify fishery type, valid period, vessel from the fishing license employer
submitted
- Aquaculture : Verify fishery type, valid period, cultivation scale and determine issuance of EP
- Extraction of salt : Determined by the salt manufacturing license and business license the employer
submitted

점수배점
<Priorities when hiring a foreign worker> - Source : 2014 MOEL employer survey (4006 employers)
(제업/소수업)
Category Nationality Work skills Gender Korean language level Age Physical condition

Percentage 39% 17.4% 11.9% 9.9% 8.3% 7.8%

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Allocating foreign workers (Scoring system)
• When allocating new foreign workers, an effort is made to prevent such cases
as companies attempting to receive workers before others by applying in
advance and the other companies waiting for long periods. Businesses are
given scores and those with the highest scores will be given first priority in
foreign workforce allocation.

Overview of the scoring system

① An employer obtains an employment permit application form by visiting job center or


through the internet

② Job center reviews applications based on order of receipt, then reviews applications to
confirm that they meet insurance conditions and that there are no grounds for
disqualification. If the applicant meets the criteria, the permit will be registered

③ Suitable workplaces will be assigned a score and put in a candidate pool based on
their business sector. Workplaces with higher scores will be designated to receive
employment permits first.

④ The results are announced for each workplaces, and employment permits are issued to
workplaces by visit at a designated date and time.

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Points System Criteria (Manufacturing)
The higher score given, the smaller the number of foreign workers actually employed compared to the number
permitted to hire (22.4 to 30 points).
The higher score given, the higher the number of foreign workers who have finished their second period of
employment with the business compared to the number of foreign workers currently employed (22.4 to 30 points).
Main criteria
The higher score given, the smaller the number of foreign workers requested in new hiring application (19 to 20
points).
The higher score given, the more Koreans hired through the employment center service during the Korean
recruitment period (14 to 20points).
Workplaces where all employees are enrolled in Repatriation Cost Insurance and Accident Insurance and that
pay insurance fees in full (+1 point).
Additional Workplaces that establish/manage excellent dormitory facilities (+0.5 points; 2 years max).
points Workplaces that complete employer education (+0.2 points).
Workplaces employing foreign workers with no accidents recorded for 5 consecutive years (+1 points; newly
added).
Workplaces that were found to have violated the law according to the results of guidance and inspection by the
authorized employment center for the previous year (-0.1 to -0.3 points).
Workplaces with Departure Guarantee Insurance payments in arrears (-0.3 to -0.5 points per person, maximum
Points of 5 points).
deduction Workplaces from which a foreign worker left due to the fault of the employer (sexual assault: -5 points ;
verbal/physical abuse/sexual harassment: -3 points; wage payment delays or other faults of employer: -3 points).
Workplaces where fatal accidents involving foreign workers occurred for 2 consecutive years (-2 points; newly
added).
Workplaces that were found to have violated the law according to the results of guidance and inspection by the
authorized employment center for the previous year (-0.1 to -0.3 points).
Preferential
Workplaces with Departure Guarantee Insurance payments in arrears (-0.3 to -0.5 points per person, maximum
selection criteria
of 5 points).
for workplaces
Workplaces from which a foreign worker left due to the fault of the employer (sexual assault: -5 points ;
with the same
verbal/physical abuse/sexual harassment: -3 points; wage payment delays or other faults of employer: -3 points).
score
Workplaces where fatal accidents involving foreign workers occurred for 2 consecutive years (-2 points; newly
added).

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Selection process

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EPS-Test of Proficiency in Korean (TOPIK)
Relationship
º EPS-TOPIK was not conducted for selection of
foreign workers in 2004 when EPS was first introduced

º EPS-TOPIK was introduced in August 2005 in order


to fairly evaluate and efficiently select workers that
meet the demands of employers (Korean Language
Society, Globalization Society)

º In 2008 test management was placed solely under


the jurisdiction of HRD Korea due to its higher
financial and administrative capacity

º Special EPS-TOPIK was implemented to select


점수배점
workers who have voluntarily repatriated after their (제업/소수업)
employment extension period Standard Korean Language
- Questions are designed to evaluate skills Textbook
competency in the industry the worker initially worked

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Skills test and Selection Point System
º There are limitations in selecting workforce fairly and effectively only by EPS-
TOPIK

º There have been feedbacks from sending agency that when selecting workforce
only by EPS-TOPIK, it limits job opportunities of workforces with relatively poorer
Korean language skill but with better work relevant capabilities with relevant
background – suited for employers

º As a result, Korean government implemented plans to improve selection process


in fairer and reasonable direction by introducing selection point system and
making skills test mandatory

º Selection point system is a scheme that evaluates worker’s Korean language level,
skills level, work experience, training, qualification in comprehensive and selects in
the order of highest score

º Until 2014, skills test was conducted to those who applied among the passers of
EPS-TOPIK, (Rate of test takers among passers : 90%). After the implementation of
selection point system, a comprehensive scheme which included and obliged
workers to take skills test was under consideration

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Selection Point System

Current New

EPS-
TOPIK
(Single
evaluation)

A comprehensive evaluation method by scoring different skills category, aside


from previous Korean-language level single evaluation method

- Application qualification, process, criteria are identical

Time Points
No. of Qs (Manu./Others)

Reading 25M 20Q 50/45


Listening 25M 20Q 50/45
Total 50M 40Q 100/90

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Selection Point System

- Passers of EPS-TOPIK are obliged to take the skills test


Physical test, Interview, Basic skills test
* For minor industries, total score is 110 [Physical test(30), Interview(30), Basic skills(50)]
- Evaluation results and interview video, extra qualities will be shared with employers

Physical test(Height, Weight)


Examining
Color vision test(those with color
weakness/blindness are disqualified) physical
condition
Check workability by examining slipped
disc, fingers (those with disadvantages will be
disqualified)

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Selection Point System

- Evaluates work experience, work training completion, qualification in relevant industry

- Evaluated based on the submitted documents (supporting documents) (for those eligible only)

To enhance evaluation
credibility

1st verification 2nd verification 3rd verification


Re-verification of
Verify documents on Verification during skills
suspicious documents
submission test
<HRDK, Sending agency>
< Sending Agency > < HRDK, interviewer >

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Prioritized entry for the workers selected
through the selection point system
Priority entry for workers in the selection point system implemented countries :
draw up a separate job seeker’s list in the order of highest scores
→ Carry out sending process(pre-departure training, medical check-up, etc) in advance to shorten
waiting period and enhance workforce utilization

Current

Signing LC Pre-departure training Visa application Securing flight


Medical Check-up/Criminal record & Issuance ticket

New
Pre-departure training
Visa application Securing
Medical check-up/Criminal Signing LC
record
& Issuance flight ticket
Satisfaction survey to employers who hired prioritized entry workers (Compared to regular entry workers)
- Source : Foreign workforce selection point system and skills test effectiveness research results (2017.11) -
Adaptability Work Skills Overall satisfaction(Intentions to re-hire)

점수배점
(제업/소수업)

90%(Fast54%, Veryfast36%) 54%(Good41%, Excellent13%) 90%(Satisfied54%, Very satisfied36%)

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Re-entry system for committed workers
Benefit
s
 Exemption from EPS-TOPIK and Employment Training. (No age limit)
 Re-entry after 3 months from departure date and work at the same company.
 Eligible industries : Agriculture/Livestock, Fishery, Manufacturing businesses
with less than 50 workers

EPS- Employment
TOPIK Training

Welcoming Ceremony for First Re-entry of Committed Meeting with Employers at Welcoming Ceremony for First Re-
Workers entry of Committed Workers

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Occupational-based recruitment for
fundamental manufacturing sector
Current

EPS‐TOPIK Skills Test Pre‐departure  Job 


Application
training placement

Occupational based training for 
New

Recruitment  fundamental manufacturing sector
of  job‐seekers Skills  Korean  Pre‐departure  Course 
EPS‐TOPIK
Job 
test training training evaluation placement

 Survey of employers on labor demand to determine scale, sub-categories, levels of training course (2,768
members of fundamental manufacturing sector (17.8.22))

 Facilitate customer advisory group comprised of Korea National Ppuri Industry Center, Korea Welding Industry
Cooperative, Employers, HRDK to discuss future cooperation
 Welding as pilot program, as welding industry is facing shortage of workforce with higher점수배점
demands from
relevant organizations, select skilled workers in advance (60 workers from Vietnam, Uzbekistan (17.12~18.3) and
(제업/소수업)
expand to other sub-sectors

 Review training facilities in sending country, discussion with sending agency on roles and responsibilities to
recruit workers with relevant background, qualifications, training, to provide customized systemic training

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Foreign worker’s insurance,
Recruitment Cost, Remittance,
Online EPS System(intranet)

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Foreign Workers Insurance
Departure Delayed Payment
Repatriation Cost
Guarantee Guarantee Accident Insurance
Insurance
Insurance Insurance
Prevention of illegal Compensate the cost Prepare the costs of
Purpose of stay, relieve the needed for Prepare in case of death or injuries
burden of granting repatriation (air plane wage payment delays outside of work
Enrollment severance pay at
once fee) duties

Subject of Employer Foreign worker Employer Foreign worker


Enrollment
Within 15 days of the
Period of Within 15 days of the Within 3 months of work contract Within 15 days of the
work contract the work contract coming into effect work contract
Enrollment coming into effect coming into effect (Penalty less than coming into effect
5 million won)
Lump sum or divided
Insurance Payment Reserves 8.3% of the payments over 3 Annually 15,000 won 20,000 won per 3
ordinary wage months, 0.4-0.6 per worker years
Specifics monthly million won varied by
country
Departure of a Occurrence of death
Insurance Payment foreign worker who Departure of a Occurrence of or injuries outside of
Causes has worked over a foreign worker delayed payment the workplace
year
점수배점
- Up to 30 million
(제업/소수업)
won for death of
accident, after-
Insurance Payment 100.5~102.3% of 101~107.4% of Maximum of effect disability
Amount principal principal 200 million won - Up to 15 million
won for death of
illness, total
disablement

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Unclaimed Insurance Assistance
º Oblige foreign workers or employers to enroll foreign worker insurance(departure
guarantee insurance, repatriation insurance, delayed payment guarantee insurance, and
accident insurance) within 15 days of the work contract coming in to effect
º Unclaimed foreign insurance add up to 38,329 cases, 25.1 billion won(Nov. 30, 2017)
º Insurances are unclaimed mainly due to (1) repatriation forgetting the existence of
insurance enrollment therefore lasting difficult to be accounted for (2) illegal stay
º The negative prescription of departure guarantee insurance and repatriation insurance
were extended from 2 to 3 years in 2014 due to the amendment of the ‘Act On The
employment, Etc. of Foreign Workers’(implemented on July 29, 2014)
º By installing the Board of Dormant Insurance Operation, the unclaimed insurance after
negative prescription is transferred to HRD-K instead of being left as the profit of the
insurance companies
- HRD-K, insurance company, overseas EPS branches, sending agencies work together to
find the unclaimed insurance to the beneficiaries.
(number of cases, amount : million won)
Departure Guarantee Insurance Repatriation Insurance
Year
Cases(number of) Amount(million won) Cases(number of) Amount(million won)

2014 21,255 25,668 9,103 3,761

2015 22,697 28,075 10,351 4,342

2016 34,070 43,445 12,006 5,029

2017. 1. 1 ~ 11.30 30,117 45,266 12,216 5,128

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Comparison of migration costs
Recruitment costs
Destination Sending Migration Monthly earnings Prior earnings in
in months of
country country cost in destination origin country (month)
earnings

Republic of Korea Indonesia 1,506 1,394 1.1 219

Kuwait India 1,248 494 2.5 192

Spain Ecuador 1,046 1,300 0.8 132

UAE Pakistan 2,148 387 5.6 140


출처 : World Bank KNOMAD Migration costs dataset
A comparison between Korea’s ITS vs. EPS

점수배점
(제업/소수업)

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Remittances to GDP per sending country
(EPS excluded, %)

Kyrgyz The
Country Nepal Sri Lanka Bangladesh Pakistan Vietnam
Republic Philippines
Remittances
31.75% 25.68% 10.19% 8.5% 7.89% 7.12% 6.82%
to GDP

Uzbekistan East Timor Mongolia Cambodia Thailand Indonesia Myanmar China

4.65% 4.27% 2.22% 2.20% 1.49% 1.12% 0.62% 0.40%

Liberia Tajikistan Tonga Haiti

31.21% 28.75% 27.02% 25.05%

Moldova Comoros Samoa Zambia

23.45% 22.77% 20.27% 19.25%

출처 : World Bank Remittance survey

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Remittance status of foreign workers

 Average monthly remittance amount of foreign workers is 69.1% of their average monthly
wage which are 1,071,000 KRW, 1,550,000 KRW relatively
 Most frequently used agency is financial agencies such as bank, then in the order of friends
and relatives, Hundi or Hawala
 Remittance fee discount, preferential exchange rate are suggested as improvements
 Remittance is used as living expenses, savings, paying debts in the order
(Source : Ministry of Justice Foreign Sojourners Survey, 2013)

 Increase labor productivity by using remittance to improve health and education levels
 Works as insurance in countries where social security is relatively lacking
 Promotes investment and income diversity
 Enhances technology and income by direct investment in agriculture and its industry
 Spending of migrant’s families creates demands and jobs in community

 Increases inequality between migrants and non-migrants


 Triggers inflation in limited resources such as land

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Foreign workers management system intranet
Foreign workers management system intranet (www1.eps.go.kr)

EPS Business Importing Training Guidance Skills test Sojourn support Return support
management support workers management management management management management

º EPS system was developed to support systematic selection/management and workforce supply,
to serve the purpose and principles of EPS

º The intranet is used to issue employment permits, manage changes in employment status, carry
out agency works to import and manage foreign workers. Job centers (64), HRD Korea’s regional
offices (86), regional offices of agencies (141) are using this intranet

º As of December 2017, EPS website (Korean & other languages) has 36,468 employers and
282,482 individual users registered (Korean : 25,161 users, Other languages : 257,321 users).
Services include applying for an employment permit, extending their EP, looking up results of
their EPS-TOPIK, printing career certificates, checking entry status and more.

º SPAS is installed in 16 sending countries, WEB SPAS is now being used, which is former
Client Server SPAS after 3 stages of reform in ’11.Oct, ’12.May, ’13.June

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Korean and multi-language support website
(www.eps.go.kr)

① (Employers) EP application (re-issue), extension of EP, selection of appropriate workers


* 10 types of online services provided, 18 types of certificates and confirmation letters issued online
② (Individual) Workers can browse their training history, workplace change history, certificate of
employment in construction sector issued

① (Employers) Overview of the EPS, status of their online petition, reserve visits, selection of
appropriate workers
② (Individual) Training history, workplace change history, view their certificate of employment in
construction sector and more.

① (Information provided) Introduction to the EPS, procedures, 4 types of insurances for foreign
workers

② (Individual) Look up their EPS-TOPIK results, apply for skills test, print carrer certificate

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Sojourn support for foreign
workers

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Sojourn Support for foreign workers

24 HRDK regional offices

Monitoring upon early stages of arrival and


conduct various sojourn support program

Foreign Workers Counseling Center

Provides interpretation and sojourn support service


Operates 365 days/year, 17 languages from 11
countries available (45 interpreters), phone
counseling available
Foreign Workers Support Center

Korean culture experience, Korean language


and computer training, free medical check- 3차 검증
up service, etc.
9 major centers and 31 minor centers

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Early stage monitoring

HRD Korea monitors the early stage of employment (up to 3 months) by calling the
workplace on phone or paying visits to the workplace

Issue found

Select Provide
Confirm Design Check Conclude
focused support for
workplace monitoring adaptation and report
support resolving
deployment plan status results
recipient difficulties

Issue not found

(Unit :Year, person)

2010 2011 2012 2013 2014 2015 2016 2017.11

34,838 45,396 49,961 55,171 51,002 49,748 57,010 47,059

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Early stage monitoring

EPS provides various sojourn support services to foreign workers to enhance


productivity of SMEs in resolving difficulties workers face in Korea such as
language barriers, cultural differences and conflict with employers
HRDK staffs and translators pay visit/make phone calls to support timely resolve
of grievances or conflicts
70 professional translators in 24 regional offices
Supported languages : 9 languages from Vietnam, Indonesia, Cambodia, Sri
Lanka, Nepal, Thailand, Uzbekistan, The Philippines, Bangladesh

Grievance Basic Fact check,


Derive
resolution counseling investigation Check Case closed,
agreement,
petition with on interested results report results
resolution
submitted petitioner parties 3차 검증

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Providing job capacity building trainings to foreign workers

The purpose of training to improve work relevant skills in Korea but also to foster the
capabilities needed for workers to become employed quickly upon their return home
Training is completed over a total of 48 hours (6-8 hours training in day) and training fees
are paid using work capacity-building support fund

Flow chart of HRDK Foreign Worker training


[Inviting applications to [Commissioned training [Trainingfee
become a training contract] payment]
[Trainee [Training]
institution] HRDK↔Training Based on
→ → recruitment] → 1 time inspection →
Document screening and institution number of
Applicants to an institution
on-siteinspection and Process, number of persons, completed
selection training contents trainees

(Unit :Year, person)

2010 2011 2012 2013 2014 2015 2016 2017


4,653 4,005 4,935 5,826 1,711 1,487 1,514 1,442

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Providing job capacity building trainings to foreign workers

No. of
Year occupation Trainees Occupation
types
Basic task (construction, manufacturing), welding, automobile operation, automobile maintenance, forklift operator,
2010 10 4,653 computer repair, computer utilization, beauty care, cooking

Basic jobs (manufacturing), electric welding, forklift operator, computer utilization, automobile maintenance, excavator
operator, machining center, shipbuilding, power distribution system assembly
2011 13 4,005 Automobile refinishing, auto body repair, CNC lathe, CO2 welding

Basic jobs (manufacturing), excavator operator, indoor electrical wiring, network management, machining center,
shipbuilding, elevator, automobile maintenance, electric welding, CO2 welding, TIG welding, special welding, forklift
2012 17 4,935 operator, computerized machines, computer utilization, PC repair, CAD

Forklift operator, foundational jobs, flower ship (floriculture), indoor electrical wiring, network management, machining
center, shipbuilding, numeric control, elevator operator, automatic control, automobile maintenance, electric welding,
2013 22 5,826 information and communications, forklift operator, computer repair, computerized machines, computer utilization, special
welding, AUTOCAD, CNC lathe, CO2 welding, TIG welding

Automobile maintenance (automobile maintenance, 2-wheel vehicle maintenance), heavy equipment operation (excavator
2014 4 1,711 operation, forklift operation), welding (electric welding, CO2 welding), Korean language intermediate

Heavy equipment operation (basic-intensive), automobile maintenance (basic-intensive), welding (basic-intensive),


2015 7 1,487 electronic and electrical (basic-intensive), general machine cutting (basic-intensive), metal surface finishing (basic)

2016 5 1,514 Automobile maintenance, Heavy equipment operation, welding, electronic and electrical, general machine cutting

2017 5 1,445 Automobile maintenance, Heavy equipment operation, welding, electronic and electrical, general machine cutting

40
Employer Education

Since 2010, education on programs related to the EPS, labor management methods, tolerance for
cultural differences and other issues necessary for the employment of foreign workers had been
conducted
Subject title Education contents
Lessons on the main aspects of the Employment Permit System (Act on the Employment of
Understanding the Employment
Foreign Workers, process for hiring workers)
Permit System
Consultation on employing foreign workers

Maintaining a Good Working Understanding the cultural characteristics of each country


Relationship with Foreign Skills for fostering good relations between employers and workers
Employees Successful examples of foreign worker management

Immigration Control Act Main contents of Immigration Control Act (reports required to be filed based on immigration law)
Establishing employment contracts, wage and severance payments
Labor Standards Act
Foreign Worker Labor
Personnel and labor management
Management Techniques
Foreign worker-related insurance obligations

Example of workplace accidents involving foreign workers and safety steps for each type of
Preventing Workplace Accidents
potential occurrence
Involving Foreign Workers
Other occupational safety and health information, etc.

(Unit :Year, person)

2010 2011 2012 2013 2014 2015 2016 2017


3,076 3,020 4,411 6,949 5,412 5,926 6,708 8,423

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Sojourn support

 Derive improvement direction through field survey on agricultural/livestock, fishery sector,


seminars with outside experts and professionals and receiving feedbacks from NGOs
Agricultural/Livestock/Fishery sector Seminars with outside advisory group and experts On-site seminars with NGOs
field surveys (Advisory group : 2017.5.11, Seminar : 2017.4~9) (2017.9.25~27)
(1st : 2017.03, 2nd : 2017.04~07)
- Need to derive measures that lead to - Alleviate limitations in providing sojourn and return - Derive systematic trainings to
actual working condition improvement by support services in case of remote or small enhance employer’s
providing full support from early stages of businesses understanding on worker’s
entry rights
(Improvement 1) Improving realistic (Improvement 2) Strengthen sojourn support (Improvement 3) Develop
effectiveness of sojourn support services management infrastructure additional e-learning training
programs and courses

 Derive improvement direction through field survey on agricultural/livestock, fishery sector,


seminars with outside experts and professionals and receiving feedbacks from NGOs
Curre (Guidance and inspection : within 3 months of entry) (Additional Support) Method : Visits,
nt - Handover of worker Counseling service to resolve phone calls
- Verify difficulties of workplace grievances

New (Guidance and inspection : within 3 (Extensive care : (Transfer case to (Expand visit
months of entry) 6 months) relevant Job Center) support)
- Inspect labor contract compliance - Induce - Induce (2016) 9.9% 
- Inspect working conditions such as Classify improvements No
improvements under (2017) 14.6%
human rights violation problematic through extensive improvements Job Center’s
employers management guidance and
- Inspect dormitory(accommodation)
condition every 2 months inspection
- Verify other difficulties

42
Sojourn support

 Provide visiting sojourn support services to farming/fishing concentrated villages


HRDK Continued management of co- - Comprehensive sojourn support service in agricultural/livestock/fishery
Regional organized sojourn support service sojourn support service (20 times, 1,301 workers)
Offices with immigration office, NACF, NFFC, - Minor scale counseling services to less-favored areas(133 times, 1,917
Job Centers workers)
Foreign Expansion of agricultural/fishery - Counseling visits to jurisdictional areas (2016: 145 times, 172 workers) 
Workers sector specialized support center (2017: 428 times, 1,356 workers, 90.4% ↑)
Support (2016) 9  (2017) 15
Center

 Strengthen employer management training by providing E-learning education to fishery sector,


developing E-learning education program for agricultural/livestock sector, providing additional
courses on sexual harassment/assault, hygiene
- Introduced e-learning education - Develop new courses in preventing - Develop new courses on hygiene
with cooperation from local sexual harassment, assault, with management training program with
NFFC (2017 May : 1,476 cooperation from Korea institute for cooperation from Korean foundation
employers trained) gender equality and for international healthcare to foster
- 2018: New education program education(2017.Aug.16) healthy working environment for
for e-learning education in foreign workers
agricultural/livestock to be
developed (Launch in 2018 Jan.)

43
 국내인력을 구하지 못한 기업에게 적정규모의 외국인근로
자 Return Support
(단순기능인력)를 합법적으로 고용할 수 있도록 허가해 주
는 제도
Strengthen efforts to expedite return of foreign
workers

 Expedite voluntary return and prevent illegal stay of re-entry workers after the implementation
of Special-EPS-TOPIK re-entry scheme and Committed workers re-entry scheme, who are facing
their terms of labor contract to be expired in 2017 (Special : Feb., Committed : August)

 Improve success of voluntary return by providing relevant return support services at appropriate
return preparation stage
- Provide trainings on return preparation to employers/workers(Reporting changes in employment
status, how to receive insurance and request substitute workers, disadvantages when hiring illegal
workers/staying illegally), return preparation and employment status of substitute workforce,
notification of the sojourn expiry date
Category Sending direct mails on Sending text <New> <New> <Improvements>
return information 2 messages 1 month
months prior to return prior to return

1) Current Direct mail 6 months Text messages on Text messages Return - Foster return spirit through visit
(2017) prior to return return consulting 3 on 2 months monitoring 1 consultations from 6 months prior to return
months prior to return prior to return month prior to and systematic return services
(Initial) (2nd) return

2) Direct mail 3 months Text messages on Text messages (2 weeks prior) - Monitoring of those with imminent returns
Improvements prior to return return consulting 2 on 1 month Return (2 weeks prior to return) and preparing
in 2018 (as of months prior to return prior to return monitoring extensive return support management
2017 Dec.) (Initial) (2nd) (1 week prior) system through sending text messages 3
3rd reminder times before return
text message

45
HAPPY RETURN Program

Before return After return

① Return preparation consultation • ⑧ Build returned workers database


② Return monitoring
③ Announce return to returnees ⑨ Support resettlement and job
④ Employment arrangement for recommendations
returning workers
⑤ Guest speaker from successful ⑩ Resettlement support meetings
returnees
⑪ Employment arrangement meetings
⑥ Korean language training
⑦ Employment and entrepreneurial ⑫ Issue work experience certificates
training

ºCourses on TOPIK (52H, 3~4H/Day, Sundays), employment and start businesses (60H,
6~8H/Day, Sundays)
ºAdditional points for Special EPS-TOPIK : Those who passed TOPIK level 3 after
completing Korean language course (20pts) Those to completed
employment/businesses course (5pts)
46
 국내인력을 구하지 못한 기업에게 적정규모의 외국인근로
자 Issues and Challenges of
the EPS 합법적으로 고용할 수 있도록 허가해 주
(단순기능인력)를
는 제도
Improving working conditions for foreign workers in
agricultural sector

º For agricultural sector, demand for foreign workers have been constantly growing due to
aging of agricultural population and employment avoidance of locals
* Applications for employment permit in agricultural sector : (’14) 25,984 cases → (’15) 26,078 → (’16) 29,519
º With the increase of agricultural sector employees, working condition issues including low
wage, long working hours and poor living environment emerged
- Due to their geographical condition, most employers provide accommodation but they are
mostly temporary housing such as vinyl greenhouse, containers, and excluded from the
application of working hours, recess, holidays in the labor act

⑴ Improving accommodation facilities


º (Limiting non-residential facilities as accommodation) New workers will not be allocated to employers that
provide vinyl greenhouse as accommodation
* It includes temporary polystyrene laminates inside vinyl greenhouse
º (Develop accommodation standards) Develop minimum standards when providing accommodation, along
with scoring criteria for accommodation type provided to encourage provision of better accommodation
facilities
(2) Strengthening of working condition protection
º (Expand information provided on accommodation) When applying for an employment permit, employer
must fill out whether an accommodation is provided or not, along with its details (type, facilities, etc), this
information is also provided to foreign workers before signing LC
º (Appropriate charging of room and board) Workers will be allowed to change workplaces under excessive
deduction of room and board, or deduction of room and board without a signed agreement
º (Guidelines on LC signing) Provide more incentives to employers to sign LC that complies with standard
labor contract for agricultural sector

48
Improving working conditions for foreign workers in
agricultural sector

(3) Provide on-site grievance counseling


º (Agriculture sector specialized foreign workers support center) Designate foreign workers
support center in farming concentrated areas as agricultural sector specialized foreign workers
support center(’17.June, 6 centers), Expand/Increase consultation visits
- Provide grievance counseling and conflict resolution by visiting business gatherings, worker’s
gatherings in agricultural sectors that aren’t capable to visit support centers
º (Introducing on-site consulting) Implement step-by-step consulting operation to provide
systematic assistance from entry to return
- Select regional businesses in relevant field and provide training on labor management
practices including labor standards, administrative procedures and regulations to provide
support for foreign workers

(4) Resolve emotional isolation


º Provide counseling services to resolve job stresses (with cooperation from Korea Worker’s
Compensation and Welfare Service), provide trainings on enhancing mental health and
preventing suicide
- Korea Employee Assistance Program (EAP) Association, Invite experts from international
healthcare foundation, Provided at foreign workers support center

(5) Strengthen employee training


º Expand agricultural sector employers participation when providing labor management
courses for employers (Trainees 20→30%), improve accessibility through online education

49
Preventing illegal stay of EPS workers

(1) Employer’s side


º (Economic incentives) It is easier to manipulate illegal worker’s wage, hours using his or her
illegal status as a disadvantage
º (Limitations in crackdowns) Every year, relevant authorities conduct interagency crackdown
and recruitment is restricted according to the results, but there are difficulties due to shortages
of crackdown forces

(2) Worker’s side


º (Economic incentives) Higher wage level compared to south east asia, more job opportunities,
better living conditions trigger illegal stay*
* According to the 2016 Foreign Workers Employment Survey(National Statistical Office),
81.7% of E-9 workers are willing to continue staying in Korea, and 14.5% have their partners in
Korea as well
- There are continuous workforce deviation from agricultural/livestock/fishery sector due to
lower wage and poor working condition, to manufacturing and construction sector with higher
wage
* Average wage level of foreign workers(E-9) (2017 Foreign workforce working condition survey)
(Manufacturing) 2,008,400 Won, (Const.) 2,288,000 Won (Agriculture/Livestock) 1,680,400 Won
(Fishery) 1,740,000 Won
º (Resettlement uncertainty) For long-term residents, their uncertainties in resettlement is also
a cause for their illegal stay *
* Workers meeting (2015) (Mongolia) If there are services provided for resettlement support, there will be less
advantages for illegal stay (Vietnam) Workers are most afraid of resettlement uncertainties, if they are
guaranteed employment, there is no reason to stay illegally

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Preventing illegal stay of EPS workers

(1) Strengthening measures against employers hiring illegal workers


º Penalties to those with illegal hiring records when requesting for government loans, heavier fines

(2) Strengthening management of committed/special re-entry workers


º (Systematic strengthening of the return process) Extensive management of re-entrants with expiring duration
of stay (9 years 8 months), with stronger incentives to stay illegally (’18 : 7,529 workers)
º Implement return management process which guides workers to prepare for return from 3 months to 1 week
prior to their return

(3) Expanding workplace adaptation support


º Preventing worker’s workplace leave and prevent illegal hiring practices by strengthening early stage visit
monitoring, improving services of foreign workers support center and trainings, training on and promotion of
preventing illegal hiring practices

(4) Reinforcing substantiality of cooperation with sending countries


º (Increasing the evaluation ratio of illegal stay rate in sending country evaluations) When determining quotas
of sending countries, sending country’s illegal stay prevention measure monitoring results will be given more
weigh in the evaluation criteria (10→15%)
º (Promote sending country-led returns) Share return results of sending countries with higher number of those
who did not return (twice/month), preparing sending country’s own measures to promote voluntary return to
boost rate of return
- Share best illegal stay prevention practices such as return deposits during ambassadors/labour attaches
meeting, promote those practices to other sending countries

51
Short-term principle and Skilled Workforce
Scoring System

(1) Korea Ministry of Justice and Ministry of Employment and Labor amended Enforcement
rule of the immigration act and Enforcement rule of the act on the employment of foreign
workers to limit visa issuance for those who are expected to sojourn longer than 9 years
and 8 months

(2) It is an approach to short-term principle in the view of limiting period of stay

(3) There are concerns on illegal stay increase as it limits workforce mobility

(4) More deliberation on balancing short-term principle and illegal stay is necessary

*Singapore(10Y), Taiwan(12Y) → Limits period of stay of unskilled workers

(1) Korea Ministry of Justice introduced Skilled Workforce Scoring System Visa (E-7-4) which is
a new, developed scheme for those who would change their visa status from E-9 to E-7.
Previously, the evaluation criteria was a simple method which assessed one’s wage level,
Korean language proficiency and work relevant skills
(2) Workers who have worked in Korea under the E-9, E-10, H-2 visa with more than 4 years
without issues, can request for visa change to E-7-4 if he/she acquires certain level of skill
level (Since ’17.Aug.1st )

52
Skilled Workforce Scoring System Visa

(1) Mandatory (Skill level in applying industry, education background, age, Korean
language level, etc.)
Optional (Assets in Korea, Work experience in Korea, Training and education in
relevant background, additional points, etc.)

(2) Quota (’17: 300 Workers, ’18: 400 Workers)

(3) Advantages
Foreign workers who hold Skilled Workforce Scoring System Visa can extend their
visa for every 2 years if he/she maintains requirements for the visa

(4) Expectations
º It resolves issues of having foreign workforce returning home after they develop
skills, and at the same time provides incentives to skilled foreign workers to stay
in Korea
º This new visa scheme will provide stable supply of skilled workforce to sectors
facing skilled workforce shortages such as fundamental manufacturing sectors
and small-medium businesses, and contributes to job creations for locals

53
Key achievements of the EPS

54
Key achievements

º Mitigated burdens for workers


º Provided fair employment opportunities
º Significant decrease of average recruitment cost (’02 ITS $3,509 → ’17 EPS $ 950)

º Provided jobs for 280,000 workers from 16 countries


º Resolved manpower shortages of 55,000 businesses in Korea

55
EPS in an International Point of View

º Pioneering a system of migration management in Asia


- Minimal conflict between employer and worker through basic language tests
- Efforts of protecting labor rights by the enrollment of foreign worker insurances
- Supply of repatriation programs as in vocational training

º Preventing and combating corruption in the public service 1st place


- Applying same labor standards among foreign workers
- Actively solving workforce sending problems

º A system of migration management recognized decent by the world


- user-friendly website with information available in their native language
- Sanctions and incentives work together to encourage voluntary departure
- EPS workers can receive free vocational training and job counseling

º No bad influence on the unemployment rate, little discrimination exists but the income gap is reasonable,
employ period is limited and transparent
º Presented by a labor policy researcher of an independent administrative firm with the topic of a field study of
EPS(Oct. 30, 2017)

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