**Small Businesses Desperate for Help: Foreign Workers Seen as Lifeline**

**Small Businesses Desperate for Help: Foreign Workers Seen as Lifeline**
Current Affairs 19 November 2025

Korea's SMEs Eye Foreign Labor to Combat Shortages: A Necessary Evil?

Seoul – It's no secret that South Korea, like many developed nations, is grappling with a tightening labor market. But a new survey reveals just how much small and medium-sized enterprises (SMEs) are feeling the pinch – and their proposed solution might raise a few eyebrows.

**Small Businesses Desperate for Help: Foreign Wor...

The Korea Employers Federation (KEF) recently polled 312 companies, and the results are pretty stark: nearly half (45.2%) want to see the annual quota for foreign workers increased. This comes as SMEs, particularly those in manufacturing, construction, and the service sector, struggle to find domestic workers willing to fill increasingly demanding roles. These are the industries reliant on manual labor, the jobs often filled by foreign workers entering the country under the Employment Permit System with E-9 visas.

Currently, that quota sits at 130,000,

Currently, that quota sits at 130,000, a drop from last year's 165,000. And while 43.6% of the surveyed businesses think the current number is fine, a significant chunk is pushing for more. Interestingly, only a small minority (8.3%) think the quota should decrease, with a daring 2.9% suggesting scrapping it altogether.

Breaking it down by industry, the pressure seems most intense in construction (48% want more foreign workers) and manufacturing (46%). The service sector, perhaps less reliant on sheer manual labor, is a bit more content with the status quo (52.8%).

The reason for this reliance on foreign labor? A whopping 61.5% of respondents cited difficulty recruiting domestic workers. That's a dramatic increase from just last year, when only 34.5% pointed to this issue. Lower labor costs and lower turnover were also factors, but clearly, the biggest driver is simply a lack of available local talent.

This isn't just about filling positions;

This isn't just about filling positions; it's about survival for many of these businesses. As one KEF official pointed out, foreign workers have become “essential personnel.” And their proposed solution? A more flexible system that can respond quickly to the ever-changing demands of the economy. More specifically, 46.2% suggested a more flexible workforce supply. Flexible stay periods and expanding the number of foreign workers were other popular suggestions.

The question, of course, is at what cost? While this may seem like a pragmatic solution to a pressing problem, it also raises concerns about potential exploitation, the long-term impact on wages for Korean workers, and the societal integration of a growing foreign workforce. It's a complex issue with no easy answers, and it’s one that South Korea, and indeed many other nations, will need to navigate carefully in the years to come.

J
Editor
James Mitchell

Experienced journalist specializing in current affairs and breaking news coverage.

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