Bangladesh should develop a short and mid-term plan to tap the labour market in South Korea as the Southeast economic giant is experiencing a labour crunch that in turn rein in economic growth of that country, sources in Dhaka and Seoul said.

Bangladesh has exported a total of 2,181 workers to South Korea during the January-September period   of the current calendar year. Bangladesh   exported 4,996 workers to South Korea during 2023, according to data of the (Bureau of Manpower, Employment and Training (BMET)

The annual limit has increased from 50,000 in 2021 to 165,000 in 2024. This program now includes workers in restaurants, hospitality, and aquaculture industries.

South Korea plans to welcome forest workers starting in October. This initiative will help alleviate labor shortages in rural and mountainous areas. The country aims to accept up to 1,000 forest workers annually.

In addition, a new training center for the shipbuilding industry opened in Indonesia in August. Trainees receive instruction in welding, safety, and Korean language skills.

This prepares them to work for South Korean shipbuilders immediately upon arrival. The shipbuilding industry faces a worker shortage as many move to the semiconductor and automotive sectors.

Estimates suggest a deficit of 14,000 workers in shipyards in 2023. The government has relaxed visa restrictions to allow more shipbuilding-related workers. Seoul has introduced a program to bring in Filipino domestic workers as “cleaning managers.”

South Korea’s Growing Foreign Workforce

This initiative aims to help single-parent and dual-income families with household tasks. The program may expand to include workers from other countries in the future.

South Korea’s population grew for the first time in three years, reaching 51.77 million in 2023. This increase is largely due to a 10.4% rise in foreign residents, totaling 1.93 million.

However, the influx of foreign workers has created some challenges. A fire at a battery factory in Hwaseong resulted in the deaths of foreign workers.

Police attributed the fatalities to inadequate evacuation instructions and safety measures. The percentage of undocumented foreign residents in South Korea has increased since 2014.

In addition, the country’s unemployment rate remains high, particularly among younger workers. This situation persists despite labor shortages in certain sectors

Bangladeshi workers should learn the language, culture and history of South Korea that will in turn help create demand for Bangladeshi workers in the South Korean market, said a migration specialist while talking to this correspondent.

Former Expatriates’ Welfare and Overseas Employment Secretary Ahmed Munirus Saleheen said that the government of Bangladesh would leave no stone unturned to cash in on the new plan of the South Korean government.

He said the government set up a number of training institutes to groom manpower catering to the market of South Korea.

The perks of workers in the South Korean market are lucrative compared to the Gulf countries, said a former Bangladesh diplomat in Seoul while talking to this correspondent, adding that  grooming of Bangladeshi workers in South Korean language and culture is important to compete with workers of Nepal, Thailand, Vietnam and Cambodia.

She said learning language and to be imbued with ROK culture is important as the South Korean entrepreneurs and industrialists desire that expat workers should have a sound hold on the matter.

Meanwhile, a former BAIRA leader while talking to this correspondent said that proper policy support and guidance, strict government monitoring and successful and effective diplomacy can give a boost to the export of manpower.     

He also said the prospect of manpower export to developed countries will be increased in the coming days as the population growth in the rich countries has dropped leading to a crunch of workers.  

While talking to this correspondent, a high official of the BMET said the government of Bangladesh has set up a crash plan to train workers in different parts of the country to cater to the growing demands in the developed countries.    

South Korea has taken significant steps to attract foreign workers across various sectors. The country now offers higher wages for low-skilled foreign workers compared to Japan and Taiwan, according to newspapers, sources said. This move aims to address labor shortages and boost economic growth. The government has expanded its employment permit system for low-skilled foreign workers.

Prime Minister of South Korea  Han Duck-soo emphasized the need to balance job opportunities for Korean citizens with employing hardworking foreign workers. The government predicts that foreigners will make up 5.7% of South Korea’s population by 2042.

South Korea recruits workers from several countries, including Nepal, Indonesia, Vietnam, Thailand, the Philippines, Sri Lanka, Mongolia, Uzbekistan, Pakistan, Cambodia, China, Bangladesh, Kyrgyzstan, Myanmar, Timor-Leste, Laos, and Tajikistan under EPS. Nepal received the 'Best Practice Outstanding Award' in 2015.

A ministerial-level agreement between Nepal and South Korea in 2007 facilitated the employment of Nepali workers in South Korea through EPS. Currently, around 50,000 Nepali workers are employed in South Korea. The employment agreement is renewed every two years, with the latest renewal in 2022.

Low Illegal Residency Rates

Compared to other destinations, the number of Nepali workers living illegally in South Korea is low, due to effective labour law implementation. The ROK employs Nepali workers in three categories: language test, Computer Based Test (CBT) after returning from employment, and returning to the same company after completing a full period without changing the company.

To work in South Korea through EPS, each worker must pay approximately $1,350 for examination, health check, application form registration, visa, insurance, air ticket, and initial training. Workers can stay for four years and 10 months, after which they must return home.

Director Kandel noted that while Nepali workers were initially employed in agriculture, animal husbandry, and production sectors, South Korea has recently expanded employment opportunities to include the ship service sector and plans to further expand into the forest and service sectors.

Challenges in Securing Employment

Despite passing the language test and submitting employment applications, many youths face challenges in securing jobs in South Korea. According to the EPS Korea Section, only 18,020 out of 42,059 applicants on the roster since 2022 have been selected by employers. If candidates do not secure employment within two years of passing the language test, they must retake it.

According to the EPS Korea Section, 24,039 individuals remain unselected by employers. Of the 691 individuals who switched to the service sector, only seven have secured employment.

Director Kandel emphasised the need for initiatives to send more workers to productive sectors such as agriculture, animal husbandry, ship service, forestry, and other services. She suggested that the annual language test schedule should be approved and made predictable. Additionally, Kandel called for diplomatic efforts to ensure that the number of test passers aligns with those who secure employment in South Korea.

Meanwhile, South Korea's population is aging at an alarming rate. In 2023, it boasted the second-highest life expectancy in the world, but also recorded the world's lowest fertility rate of only 0.72 births per woman. This trend is set to continue and intensify in the coming years. By 2025, South Korea is expected to become a "super-aged society," with over 20 percent of the population being 65 years or older. Efforts to reverse the country's plummeting birth rate have thus far been unsuccessful.

The economic impact of population aging in South Korea

In 1983, South Korea's fertility rate dipped below the "replacement level" of 2.1 children per woman – the average number of births per woman required to maintain the current population size. In 2023, a mere 230,000 children were born, which was almost one-third of the level 20 years ago. The reasons behind this drastic decline in birth rates are high child-rearing costs, soaring property prices, and a work culture that hampers women's career progression after having children. If this trend persists, the country's total population is estimated to shrink to 36 million by 2072 – around two-thirds of the current population.

Conversely, the elderly population aged 65 years and above is projected to more than double by 2050. The decline in the working-age population and the simultaneous increase in dependent people will impose a significant financial and social burden on the younger generation. Official estimates suggest that the national pension fund will be depleted in the next 30 years if the current pension system is maintained. Moreover, the Bank of Korea has warned that the declining birth rate may lead to negative economic growth from 2050 onwards.

How is South Korea tackling its demographic challenges?

Over the past two decades, the South Korean government spent approximately 280 trillion South Korean won (about 200 billion U.S. dollars) to increase the country's fertility rate, but with little success. The budget allocation lacked clear objectives, and insufficient funds were directed toward supporting pregnancy, childbirth, and childcare. In international comparison, South Korea’s spending on family benefits was among the lowest in 2022. Realizing the urgent need for a change in strategy, the current Yoon Suk Yeol administration has proposed new plans to address the demographic crisis by focusing on critical areas and improving inter-ministerial cooperation. However, it remains to be seen how effective these measures will be in the long run.

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Meanwhile, South Korea, officially known as the Republic of Korea (ROK), has become an increasingly attractive employment destination for Nepali youths, driven by the country's sustained economic growth. The rising number of Nepali youths taking the mandatory language test for employment in South Korea underscores this trend.

Since 2008, the ROK has been hiring Nepali workers through the Employment Permit System (EPS). To date, 919,631 Nepali youths have applied for the Korean language test, with over 900,000 applications since the EPS's inception. In 2024 alone, 199,113 individuals applied for the test, and 548,771 participated.

Over 100,000 Nepalis Employed in South Korea. The number of Nepali workers heading to South Korea under EPS continues to grow. According to Maiya Kandel, Director of the EPS Korea Section, 155,44 Nepalis, including 98,310 men and 7,243 women, have secured employment in South Korea. In 2023, a record 19,689 Nepalis left for South Korea, making Nepal the leading country in sending workers abroad. In the first seven months of 2024, 4,285 Nepali workers have already departed for the ROK