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Seoul to transfer Filipino caregiver program to private sector after mixed reviews

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Filipino caregivers arrive at Incheon International Airport as part of Korea's pilot project, which aims to supply foreign workers to domestic households, Aug. 6, 2024. Joint Press Corps

Filipino caregivers arrive at Incheon International Airport as part of Korea's pilot project, which aims to supply foreign workers to domestic households, Aug. 6, 2024. Joint Press Corps

By Jung Da-hyun

The Seoul Metropolitan Government and the Ministry of Employment and Labor will hand over the operation of the Filipino caregiver program to the private sector starting in March, following the completion of a six-month pilot phase that received mixed reviews.

Launched last year, the pilot program was initially expected to expand nationwide in the first half of this year to alleviate child care burdens in light of Korea's declining birthrate by providing foreign caregiving workers to local households. However, lukewarm responses from local governments outside of Seoul, coupled with concerns over high costs, had put those plans on hold.

While the trial period is set to end this month, a city official confirmed that ongoing services for participating households will continue.

As the labor ministry has not yet decided whether to expand the initiative into a full-scale program, private operators are expected to take over the service for the time being.

Meanwhile, concerns are growing over potential higher fees as the Filipino caregiver program transitions to private management.

Recently, companies managing Filipino caregivers notified users of a planned hourly rate hike from 13,940 won ($9.61) to 16,900 won starting March 1. However, they later withdrew the decision after facing backlash. The labor ministry also clarified that the final service fee has yet to be determined.

Currently, caregivers are employed by two private companies, while the city government and the labor ministry have been covering the costs of staffing, including app development, administrative support and interpretation services.

Once the pilot project ends, these costs will fall on the private companies, making a service fee increase highly likely.

Originally designed to offer affordable child care support and ease the burden on parents amid Korea's declining birthrate, the initiative has faced controversy due to concerns over service costs.

This sparked a debate over caregiver wages, with some arguing that the program should allow households to hire Filipino workers at rates below the country's legal minimum wage. While supporters contend that this would help keep child care services affordable, critics argue it undermines labor rights and fair compensation standards.

Amid these concerns, the city government said it is developing a support system for households struggling with child care costs but are still in need of the service.

A city government official said both the labor ministry and Seoul officials will unveil on Friday detailed plans regarding the program's future.

Jung Da-hyun dahyun08@ktimes.com


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