Labor Minister Kim Moon-soo speaks during a meeting with reporters at the Government Complex in Sejong, Monday. Courtesy of Ministry of Employment and Labor

Introducing a separate minimum wage system for foreign workers is de facto infeasible and such a plan won't materialize in Korea, Labor Minister Kim Moon-soo said Monday.

Speaking to reporters at the Government Complex in Sejong, Kim said the adoption of such a system for non-Korean laborers in certain industries is not just legally challenging but also practically unattainable as they would be drawn to higher wages elsewhere.

“Let's say a Filipino worker comes here under the condition that she would be paid 1 million won ($770) a month for working full-time as a caregiver. Do you think she would stay in the job after the first month?” Kim said. “These days, they can gain all sorts of job information through online communities such as where they can make more money … After our review on the issue, we have come to the conclusion that it won't be easy.”

His remarks come amid a growing number of complaints about the Filipino nanny program, one of the key policies Seoul Mayor Oh Se-hoon introduced to help alleviate Korea's birthrate crisis. Many, including the mayor himself, criticize it for being too expensive after the central government decided to apply the nation's legal minimum wage to all 100 Filipino workers participating in the project.

Many politicians of the ruling People Power Party and residents in Seoul say the government needs to emulate the system in Singapore, where its citizens enjoy the same services at far lower prices.

“Korea is different from Singapore, a small city state where officials can more effectively manage issues such as foreigners illegally staying there,” Kim said.

Two of the 100 workers were recently confirmed to have become uncontactable since Sept. 17. Kim said that the unsatisfactory wage could be the reason for their decision to break the contract and that this incident shows what could happen if a separate minimum wage system is adopted widely for more foreign workers.

Yet, Kim acknowledged that the price of the caregiving services offered through the program is too high for most households and promised to continue discussions with the mayor and other politicians to find a better solution.

The pilot project is expected to be expanded to other cities and regions after a six-month period in the capital. But criticism has grown recently, threatening that plan. Asked for his thoughts on the program's sustainability and expansion, he said it would be premature to provide any judgment right now.

One of the other topics addressed during the meeting was the application of the Labor Standards Act to small businesses. Currently, companies with four or fewer employees are excempt from some clauses of the law including the obligation to offer paid leave.

Kim said the application of the law to more workplaces would be one of his key policy goals during his tenure. But given that many small businesses are struggling with unfavorable economic conditions such as inflation and the steeply increased minimum wage, he said he would tread carefully to strike the right balance between small business owners and their employees.