Seoul: The six-month foreign caregiver pilot program aimed at addressing South Korea's low fertility rate is set to continue for another year. The 98 foreign caregivers who arrived in Korea in September will continue to assist Korean households with child-rearing duties. However, the initial goal to expand the program to include 1,200 caregivers will not be realized at this time. These caregivers, who entered Korea on E-9 visas, have expressed their desire to continue working in the country and can now stay for up to three years.
According to Yonhap News Agency, families employing these caregivers have reported satisfaction with the program. Nonetheless, the high costs associated with hiring foreign caregivers have hindered the program's expansion. Currently, the service is primarily accessible to high-income households in specific regions of Korea. This year, the hourly wage for Filipino caregivers increased to 16,800 won ($12), factoring in severance pay and inflation. This wage increase means caregivers working full-time can earn a monthly wage of 2.92 million won, which poses a financial challenge for many Korean families, whose average monthly income is 5.25 million won.
A government review indicated that high-income families predominantly use the service, with around 41 percent of participating households residing in Seoul's affluent districts south of the Han River and others in Sejong and Busan. Approximately 73 percent of these families earn over 9 million won per month, while 23.2 percent have incomes exceeding 18 million won monthly.
Efforts by the Seoul city government and central bank to have households sign contracts directly with caregivers faced opposition from the labor ministry and unions. The annual minimum wage discussions in Korea often involve debates over whether certain job sectors, such as domestic caregivers, should be exempt from minimum wage requirements. The success of similar programs in Hong Kong and Singapore, where caregivers live with the families they work for, raises questions about cost-effectiveness and policy differences compared to Seoul.
The challenges of implementing the program prompted Rep. Na Kyung-won of the ruling People Power Party to suggest withdrawing from the International Labour Organization (ILO) to make foreign caregiver services more affordable. However, rather than exiting global organizations, Korea is encouraged to leverage its policy-making expertise to integrate foreign caregivers effectively into the economy.