Professional Documents
Culture Documents
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
4
Expansion of Sending Countries and Designation of
Countries for small-scale industries
Industry Country
5
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)
6
Korean Language Test (EPS-TOPIK)
* HRD Korea’s local EPS Center Representative monitors and supports overall administration of exams
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
8
Signing the labor contract
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
9
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
10
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 (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 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
12
Entry / Training & Handover
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)
13
Sojourn Support / Return Support
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
14
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
15
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.
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.
16
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).
17
Selection process
18
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
19
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 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
20
Selection Point System
Current New
EPS-
TOPIK
(Single
evaluation)
Time Points
No. of Qs (Manu./Others)
21
Selection Point System
22
Selection Point System
- Evaluated based on the submitted documents (supporting documents) (for those eligible only)
To enhance evaluation
credibility
23
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
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)
24
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
25
Occupational-based recruitment for
fundamental manufacturing sector
Current
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
26
Foreign worker’s insurance,
Recruitment Cost, Remittance,
Online EPS System(intranet)
27
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
28
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)
29
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
점수배점
(제업/소수업)
30
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
31
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
32
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
33
Korean and multi-language support website
(www.eps.go.kr)
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
34
Sojourn support for foreign
workers
35
Sojourn Support for foreign workers
36
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
37
Early stage monitoring
38
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
39
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
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
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.
41
Sojourn support
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
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
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
48
Improving working conditions for foreign workers in
agricultural sector
49
Preventing illegal stay of EPS workers
50
Preventing illegal stay of EPS workers
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
(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
(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.)
(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
55
EPS in an International Point of View
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)
56