Korea's liberal opposition party has expressed its opposition to the introduction of a separate minimum wage system for foreign workers, a stance that could hinder the efforts of some ruling party politicians who are pushing for the agenda.
A representative from the Democratic Party of Korea's (DPK) policy department told The Korea Times recently that adopting such a system through legislation would be "inappropriate."
The DPK had not previously stated its official stance on the issue.
"It would violate the International Labor Organization's (ILO) rules and the Labor Standards Act of Korea. It would also negatively impact job markets and infringe on the rights of foreign workers," the party official said. "All things considered, introducing such a system would be inappropriate."
The stance of the party holding a majority in the National Assembly suggests that the attempt by some ruling party politicians to reduce wages for foreign workers through legislation is likely to fail.
The DPK's official stance comes as several prominent politicians, including Rep. Na Kyung-won and Seoul Mayor Oh Se-hoon, support adopting such a system in response to growing complaints from small business owners about rising labor costs.
Speaking at a seminar on the issue at the National Assembly on Aug. 27, the two called for the introduction of a separate wage system for foreigners. They argued that reducing labor costs for services such as babysitting could help address Korea's low fertility rate.
The minimum wage issue for foreign workers has garnered significant public attention in recent months. The Seoul Metropolitan Government's pilot program to hire Filipino caregivers to assist Korean parents has faced criticism for being too costly for most households, with expenses exceeding 2 million won ($1,500) per month for a full-time worker.
The mayor stated that the project is unlikely to achieve its intended goals if the current high labor costs for the workers remain unchanged.
Politicians have been exploring ways to reduce the cost but have noted that changing the relevant laws will be necessary to ensure the stable operation of the program and similar future initiatives.
By law, employers in Korea must pay at least the legal minimum wage — 9,860 won for 2024 and 10,030 won for the following year. Violators could face up to three years in prison or a maximum fine of 20 million won.
The ILO's principal instrument also bans discrimination based on national extraction, race, color, sex, religion, political opinion and social origin. Violating this rule could come at a cost, such as a damaged reputation for Korea.
This presents a significant challenge for ruling party lawmakers and city authorities in Seoul and beyond, as cooperation from the DPK would be crucial for effectively reducing the costs of employing foreign workers.
"It must have been difficult for the DPK to suddenly deviate from its liberal policy direction," Cho Jin-man, a politics professor at Duksung Women's University, said. "But it has also kept the issue low key probably because many of its voters would not like its position on that."
When asked if this would conclude the pilot project with the Philippine government after its six-month trial period, a Seoul city official dismissed that possibility.
"As demand for foreign workers is expected to continue to grow in areas like care services for seniors, for example, we will continue to try to find solutions to lower the cost regardless of whether a separate minimum wage system for foreign workers is introduced or not," the official said.
During his confirmation hearing at the Assembly last month, Labor Minister Kim Moon-soo, then nominee for the post, also said he was skeptical of the idea of offering lower minimum wages for foreign workers as it would be in violation of international practices and Korean laws.