A month after the Filipino caregiver pilot program began, both the Seoul city government and the Ministry of Employment and Labor intervened to adjust it. Last week, they took their first step by eliminating the 10 p.m. curfew for the initial group of 100 Filipino caregivers and accepting their request to receive pay twice a month. However, these changes are relatively minor compared to the broader challenges facing the pilot program, which is set against a backdrop of Korea's worryingly low fertility rate and aging population.

Two caregivers from the first group were apprehended in Busan and face deportation. On E-9 visas, the workers failed to return to their designated residence and report for work, violating their immigration and employment contracts. When found, they were illegally working at an accommodation facility, reportedly earning more than the minimum hourly wage of 9,860 won ($7.30).

The success of this six-month pilot program is vital for Korea, as it draws inspiration from similar initiatives in Hong Kong and Singapore. The early emergence of participants going AWOL, a familiar trend linked to illegal foreign labor here, alongside the current pay structure, underscore the need for further revisions. Based on the progress of the program, the government is scheduled to bring in around 1,200 foreign caregivers come next February.

The Filipino caregivers currently in Seoul are between 24 and 38 years old, possess caregiver certificates, and are fluent in English. They have also received training in Korea, which makes them particularly sought after by certain households, especially in the affluent neighborhoods of southern Seoul. Policymakers must seriously evaluate how to refine the virtuous cycle between the supply of foreign caregivers and household demand over the next five months.

Reports indicate that the response among recipients of the caregiver program has been mostly positive. However, if a foreign caregiver works the full eight hours a day, households would need to pay 2.38 million won. To make the service more accessible to the middle class, the Seoul city government is considering classifying child caregiving under the E-7 visa category. This change would allow individual households to enter private contracts with foreign caregivers, potentially leading to a different minimum wage level.

At a seminar in August, Seoul Mayor Oh Se-hoon noted that "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." He expressed skepticism about the program's ability to adequately meet household needs if Korea strictly adheres to the national minimum wage.

The problem lies in the skepticism of central government agencies regarding Seoul's initiative. Labor Minister Kim Moon-soo has stressed the importance of adhering to the minimum wage in line with the Constitution, ILO principles, and other domestic labor laws related to foreign workers. He has raised concerns that paying foreign caregivers a lower, scaled wage could lead to an increase in illegal foreign workers in Korea. Instead of citing a lack of personnel, the government could enhance efforts to establish the promised Immigration Office to address the issue of illegal residents.

In Korea, the minimum wage is seen as a vital safeguard for workers, making it a sensitive and almost sacred issue. However, this year's failed attempt by employers to implement differentiated minimum wage scales in sectors like restaurants and accommodation facilities reveals the existence of voices — though not dominant — advocating for a differentiated minimum wage for self-employed individuals, particularly in the restaurant industry.

In the remaining months ahead, the Seoul City government and central government agencies must assiduously work toward a more finely crafted caregiver program. Some believe the pilot program was implemented too hastily, suggesting that the government should reconsider its plan to expand it to approximately 1,200 foreign caregivers after the pilot concludes. This reconsideration could involve exploring alternative wage structures or reducing the number of foreign caregivers to be brought in. As Korean society ages and faces one of the lowest fertility rates in the world, the adoption of foreign caregivers is likely to become a key component of Korea's long-term care strategy. Recent months have underscored the need for greater flexibility and adjustments to effectively meet the needs of both labor suppliers and consumers.