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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Seoul, September 16, 2025 — A new survey shows that nine out of ten small and medium-sized enterprises (SMEs) in Korea employ foreign workers because of difficulties in hiring domestic labor.
The Korea Federation of SMEs (KBIZ) released the results of its “2025 Employer Survey on the Employment of Foreign Workers,” conducted in July among 503 companies with more than 50 employees currently employing foreign nationals.
According to the findings, 93.8% (472 firms) of respondents said they hire foreign workers because they are unable to recruit domestic employees. In contrast, only 2.6% cited “cost savings,” 1.2% cited “improved productivity,” and 0.2% cited “access to skilled or experienced talent” as their primary reasons.
Looking ahead, 98.2% (492 firms) reported that they plan to maintain or increase their employment of foreign workers, while only 1.8% said they would reduce it. Among companies intending to expand hiring, the average planned increase was 6.5 additional foreign employees.
When asked about preferred nationalities, 60.8% (306 firms) responded that they prefer workers from the same countries as their current foreign employees. KBIZ explained that companies see operational efficiency in hiring workers of the same nationality due to easier workforce management.
The survey also revealed skepticism among SMEs toward the introduction of a 4.5-day workweek. Among respondents, 42.1% (212 firms) cited “difficulty meeting delivery deadlines,” while 24.1% (121 firms) expressed concerns over “higher labor costs and increased operating expenses.”
알파경제 Kim Jisun (stockmk2020@alphabiz.co.kr)
