As Seoul’s six-month foreign caregiver pilot program marks its first month on Thursday, achievements are clouded by significant unresolved issues — including controversy over suggestions they should be paid less than minimum wage and the sudden disappearance of two workers who left the program — sparking calls for a thorough reassessment before any plans to continue or expand the program are considered.
The initiative, led by the Seoul Metropolitan Government and the Ministry of Employment and Labor, aims to offer affordable child care and light and incidental household management activities as local caregiver numbers have dwindled as fewer are willing to do low-wage care work. The six-month pilot, limited to Seoul households, primarily dual-income with multiple children, and employing only Filipino national women aged 24-38, began on Sept. 3 with 100 workers.
The Seoul Metropolitan Government has self-assessed that the pilot program has yielded promising results in its first month. The Filipino caregivers have been commended for their hard work and English proficiency. The selected households also find the service more affordable than hiring local caregivers, as they are only required to pay the minimum wage, according to Seoul city.
However, the program has faced continued controversy. On Sept. 15, just two weeks after starting work officially here, two Filipino caregivers disappeared from their accommodations in Yeoksam-dong and have not returned as of Thursday. If they fail to return, program regulations stipulate they will be classified as unregistered.
The Ministry of Employment and Labor has suggested that the disappearances of the two caregivers may be linked to dissatisfaction with wages. While the caregivers are paid the minimum wage, they could potentially earn more in manufacturing or other jobs. In particular, some manufacturing employers, struggling with labor shortages, are reportedly offering wages above the minimum to attract and retain workers.
This incident has also reignited the controversy about foreign caregivers’ wages being insufficient. There have been persistent calls in particular from ruling People Power Party politicians to pay them below the minimum wage, with Seoul Mayor Oh Se-hoon making a similar argument at a seminar held in Seoul in late August.
“In Hong Kong, the cost for foreign domestic workers starts at 830,000 won ($622) monthly, and in Singapore, it’s between 480,000 and 710,000 won,” according to Oh. “In Korea, if we adhere strictly to minimum wage laws, I’m not certain this program will sufficiently benefit those who wish to hire caregivers.”
However there is strong opposition to lowering wages.
Labor Minister Kim Moon-soo, during a press briefing at the Government Complex in Sejong on Monday, also stated, “Currently, the minimum wage is applied to these workers, and despite this, two have disappeared. If we were to offer even lower wages, it would likely result in more workers leaving, thereby jeopardizing the program’s sustainability.”
Kim further emphasized the differences between South Korea and city-states like Singapore, noting, “Unlike in those countries, where managing undocumented residents is relatively straightforward due to their small size, managing undocumented residents is challenging in Korea due to the country’s large size.”
Kim also noted that not applying the minimum wage standards to foreign workers due to their nationalities contradicts international norms, such as those outlined in the International Labor Organization’s Convention 111, as well as domestic laws including the Labor Standards Act and the Act on the Employment of Foreign Workers.
Labor groups have called for a comprehensive reassessment of the program’s expansion. The Federation of Korean Trade Unions, one of the country’s two major umbrella unions, issued a statement in September, criticizing the government for its “hastily executed initiative, lacking adequate preparation and consultation.”
The organization warned that “even when workers are paid the minimum wage, they are leaving. If wages are lowered further, even more workers will leave.”
The Labor Ministry has consistently stated its intention to finetune the policy after the six-month pilot, carefully monitoring the program’s progress. This evaluation could pave the way for a possible expansion in the future.