Filipino caregivers arrive at Incheon International Airport, Aug. 6, as part of Korea's pilot project to provide foreign child care workers. An official at the labor ministry said on Thursday that the plan's future after a six-month trial program has not been determined yet. Joint Press Corps

When the Seoul Metropolitan Government and the labor ministry launched a pilot program to hire 100 Filipino nannies last year, officials aimed to expand it into a national scheme after a six-month trial, and bring in more foreign workers.

But the future of the plan is now uncertain, with officials now reassessing its viability as the program is set to end on Feb. 28.

"There has been much discussion about the program but nothing has been decided yet," an official at the Ministry of Employment and Labor told The Korea Times, Thursday. "The plan is expected to be announced later this month."

But in a statement released later that day, the ministry said those who are currently using the services of the 98 Filipino caregivers will be able to continue doing so in March. However, it did not reveal further details, such as for how long.

The program sought to address Korea's declining birthrate and shortage of child care options. This initiative aims to provide affordable child care services to families, particularly those with young children. The program also seeks to alleviate the burden on working parents, allowing them to balance their careers and family responsibilities.

Korea's total fertility rate, which measures the average number of children a woman has in her lifetime, is the world's lowest, hovering below 0.8, posing a significant demographic challenge.

According to a Seoul city official familiar with the issue, it is possible that the ministry may proceed with its initial plan to invite 1,200 nannies from additional partner nations or expand the program exclusively with the Philippines, following positive reviews of the Filipino workers.

"But nothing can be said for sure yet," the official added.

According to a survey conducted in December to assess the demand for foreign nannies, the Seoul Metropolitan Government reported a need for 900 workers. However, authorities in other cities indicated they did not require such workers, with the exceptions of Busan and Sejong, which stated they needed "20 or fewer."

The biggest challenge for policymakers is the high cost. The plan, initiated by Seoul Mayor Oh Se-hoon, sought to reduce labor costs by paying Filipino workers less through a separate wage system for noncitizens.

But that plan was later derailed by the main opposition Democratic Party of Korea, which refused to revise any laws to make it possible, and by the labor ministry, which raised concerns about the International Labor Organization's rules prohibiting discrimination based on nationality, race and other factors.

As a result, the cost for service users went up substantially from what was initially promoted — 1 million won ($700) per month.

The monthly cost of hiring a full-time Filipino caregiver, including social insurance fees, was more than 2.3 million won even before the minimum hourly wage increased to 10,030 won this year. It is deemed too high for most Korean households, which earn 5.25 million won a month on average, according to the latest data from Statistics Korea.

Moreover, the firms participating in the program are expected to raise their service charges once it gets expanded, city officials said. If they move to do so, the cost would increase even further.

The program has also raised other issues about the human rights of the Filipino workers and concerns about a possible increase in undocumented foreigners here.

Two of the Filipino workers were deported in October after disappearing for weeks from their workplaces without permission in violation of Korea's immigration law.