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Economy

Seoul eyes opening doors to domestic helpers from Southeast Asia

The move addresses issues of the world's lowest birth rate; these foreign workers demand lower salaries than the current market rate

By May 08, 2023 (Gmt+09:00)

2 Min read

A woman cleaning house (Courtesy of Getty Images)
A woman cleaning house (Courtesy of Getty Images)

Seoul is slated to welcome domestic helpers from Southeast Asia later this year to ease the burden of childcare and address issues surrounding Korea's birth rate, the world's lowest, which hit 0.78 in February of 2023. 

The South Korean capital and the labor ministry are considering allowing domestic helpers to hold E-9 visas, which gives foreigners eligibility to work in Korea for a year or two in non-professional jobs in the construction and agriculture industries.

The government will start recruiting domestic helpers from Southeast Asia this autumn and introduce them to families in Seoul who need assistance. The E-9 visa holders can work only in the workplaces arranged by the government and can apply to renew their visas after they expire. 

The capital is considering a pilot project with 100 helpers and gradually increasing the number, providing them accommodation in dormitories. Living in separate places from employers will offer the workers’ privacy and protect their human rights, an official from Seoul said.

Salaries for domestic childcare workers have soared in recent years in line with increased demand.

According to some local recruiting websites like “Sitternet” and “Dandihelper,” the average monthly wage for a live-in Korean Chinese nanny taking care of two preschoolers was 1.2 million-1.4 million won ($907.7-$1,059) in 2010; it surged to 2.6 million-3.2 million won in 2023. The cost for a Korean helper jumped to the mid-3 million won range during the same period, about 40% higher than 2.5 million won, the average nominal wage for Korean women in 2021.

The salaries for Korean Chinese helpers are even higher outside Seoul and some major cities in Gyeonggi Province due to serious shortages.

A nanny and a child play with building blocks (Courtesy of Getty Images)
A nanny and a child play with building blocks (Courtesy of Getty Images)


YOUNGER HELPERS WITH LOWER SALARY

The capital estimates the average monthly salary for the new foreign domestic helpers will be around 2 million won. With a basic hourly wage of 9,620 won, the monthly payment for a five-day workweek would reach around 1.7 million; extra payment for night work and other allowances are estimated at around 300,000 won.

Although the monthly wage is two to three times that in Hong Kong and Singapore, it is still up to 30% cheaper than the current market rate for commuter babysitters. Also, the new helpers from Southeast Asia are expected to be younger than the majority of existing helpers who are middle-aged.

But the newcomers may not be able to communicate well with their employers, unlike Korean Chinese helpers who dominate the market, and may be challenged by cultural differences.

The government foresees that the expanded visas for Southeast Asian helpers will ease issues surrounding the low birth rate and domestic labor shortage. If the pilot project for babysitters and helpers proves successful, Korea may apply the visa program to other fields such as caregivers for the elderly and the infirm.

Write to Sang-Eun Lee and Hae-Ryon Choi at selee@hankyung.com

Jihyun Kim edited this article.
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