Visa Status Significant
Last year, three out of four foreign recipients of unemployment benefits were Chinese nationals, including those of Korean descent, according to a recent survey. Over the past five years, the total unemployment benefits received amounted to 266 billion won (US$199.70 million), which was 784 billion won more than the employment insurance premiums paid during the same period, totaling 187.6 billion won.
According to data submitted by the Ministry of Employment and Labor to the People Power Party lawmaker Lee Joo-hwan on Aug. 12, out of a total of 12,107 foreign recipients of unemployment benefits last year, Korean-Chinese, including ethnic Koreans, and Chinese nationals, excluding Korean-Chinese, accounted for 7,637 and 1,629 individuals respectively, making up a combined 76.5 percent of the total. The number of Korean-Chinese recipients increased from 55.0 percent in 2018 to 63.1 percent last year, representing a rise of 8.1 percentage points.
From the outset, it was found that Korean-Chinese and Chinese nationals have a higher proportion of unemployment benefit recipients among those who originally paid employment insurance premiums. Among the 95,105 Korean-Chinese who paid employment insurance premiums last year, 7,637 individuals, or 8.0 percent, received unemployment benefits. Among these recipients, Chinese nationals accounted for 7.4 percent. This is twice the average rate of 4.3 percent and four times larger than the third-ranked Vietnam at 2.3 percent. This can also be interpreted as indicating a higher utilization rate of the unemployment benefit system by Korean-Chinese and Chinese nationals.
It has been analyzed that visa status plays a significant role in this matter. Korean-Chinese often enter the country using the F-4 (Overseas Korean) visa, which allows for long-term residence even in the case of unemployment and does not impose restrictions on changing workplaces. While F-4 visa holders are not obligated to enroll in employment insurance, a substantial number are presumed to have joined for the purpose of receiving unemployment benefits.
In addition, foreign nationals from Southeast Asian countries and other regions who enter the country with an E-9 Non-professional Employment visa face the possibility of deportation if they do not secure employment within three months. This situation places more emphasis on reemployment rather than receiving unemployment benefits.
Furthermore, when it comes to hiring workers at workplaces, it has been observed that Korean-Chinese are preferred over Southeast Asian workers due to relatively smaller language and cultural differences. Korean-Chinese people can easily return to the workplace after receiving unemployment benefits, contributing to a higher proportion of recipients in the unemployment benefit system.
Currently, the domestic labor force is decreasing overall, and in conjunction there is a phenomenon of domestic workers avoiding what is known as the “3D industries,” which means difficult, dirty and dangerous jobs. This trend is leading to a relative increase in demand for foreign labor as these industries experience a rise in demand for workers due to their challenging nature.
As a result, considering the imbalance in unemployment benefit recipients and the increasing foreign labor force, there is a growing call for urgent reforms in the system, such as setting a higher minimum unemployment benefit threshold, to prevent the concentration of unemployment benefits on specific nationalities.