SEOUL: Seoul’s attempt to address the country’s low birth rate through an influx of foreign caregivers is set to wind down, as the South Korean government said on Wednesday (Dec 23) it would not issue any additional visas tied to the city’s domestic worker programme.
The project began in August 2024, when 100 Filipina caregivers entered South Korea on E-9 non-professional work visas, aiming to reduce high child care costs, widely cited as a major factor behind South Korea’s low birth rate.
Seoul had planned to expand the programme to 1,200 caregivers with full implementation from March. The programme, however, failed to gain traction. Higher-than-expected wages fueled public doubts about its effectiveness, leaving the project’s future uncertain.
The cost of the child care service has reached levels comparable to those provided by South Korean nationals in Seoul, as the city failed to implement a lower wage system.
Between September 2024 and February, the hourly rate was set at 13,940 won (S$12.25), translating into a monthly cost of about 2.42 million won for a 40-hour workweek.
From March, monthly fees rose by an additional 497,000 won, as the workers became eligible for severance pay under South Korea’s Labor Standards Act once their contracts exceeded one year.
The high prices skewed demand toward relatively affluent households, prompting criticism that the policy primarily benefited families already able to afford child care services.
A February survey by the laboUr ministry showed that 73 per cent of subscribers were households with combined monthly incomes exceeding 9 million won.
