World Bank Labor And Migration Core Course 2018

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World Bank Laborand migration corecourse 2018Yoonyoung Cho(Senior Economist)

What is Korea’s EPS? Non-seasonal guest worker programG2G involving multiple countries for temporary labor migration for un-and semiskilled occupations–– Evolved from an “Industry Training System (ITS)” to an EPS in 2004––– With recognition of issues such as worker protection;Migration costs due to middlemenOverstay of workersTemporary worker program (without immigration/settlement)– Between the Republic of Korea and 15 Asian countriesVery strong leadership from the Korean government in managing the entire process (without involving intermediaries);Without mixing with immigration / settlement issuesCurrently addressing labor shortages in SMEs for a few select sectors (e.g.,manufacturing, agriculture, fishery)2

Unique features of EPS Strong & elaborate institutional arrangement to manage the programand balance domestic political economy–––No private middlemenMoEL leadership / HRD implementationUtilizing existing infrastructure for both domestic and foreign workers Robust administrative system–––Records of foreign workers linked to immigration (visa, airport entry & exit)Records of foreign workers and employers informationCentralized job matching Strong worker protection & support–––Labor regulation: The same minimum wage applicable for both domestic & foreign workersSocial insurance: Mandatory insurance programs (health, social security, workers compensation, etc)Social services: Counseling services, job search assistance in case of separation3

ImplementationPolicyMinistry of Justice(MoJ)Ministry of ForeignAffairs (MoFA)Ministry of Strategyand Finance (MoSF)Ministry of Trade,Industry, andEnergy (MoTIE)Ministry of SMEsand Startups(MoSS)Foreign Workforce Policy CommitteeMinistry of Employment and Labor (MoEL)Human Resource DevelopmentServices(HRD – Korea)- Skills development- Skills certification- Integrated HRKoreaEmploymentInformationSystem (KEIS)Regional JobCentersSME associationLabor UnionEPS team andcenters in 15countriesHUG Korea(Counseling centers forforeign workers)Korea supportcenter forforeign workers

EPS Process1.LANGUAGETEST10. RETURNSUPPORT2.SKILL TEST9. TRAINING FORRETURNHuman Development Week 2017 - SPJ GP3.JOBAPPLICATION8.4. ION6.VISA5

Hallmark : Test of Proficiency in Korean (TOPIK)Human Development Week 2017 - SPJ GP6

Common concerns re. migration EPS strategy Migration costs Limiting private recruitment agencies’ activitiesWorker protection Labor regulation, social insurance, social servicesBusiness competitiveness SMEs in viable sectorsMatching quality between employers / workers Worker screening(e.g., Korean test) & PES matching Timely return Repatriation insurance return supportHuman Development Week 2017 - SPJ GP7

Achievements: migration costs (over time crosscountry comparison)Improves transparencyReduces costsReduces # of overstaysHuman Development Week 2017 - SPJ GP8

Achievements Reduction in illegal migrants Costs of migrationQuota adjustments(Vietnam/Philippines) Worker protection Labor rights (legalized union activites)9

Remaining challenges Worker protection: esp. agriculture/fisheries Domestic political economy Matching quality10

Lessons Learned For sending countries Limiting/regulating middlemen cost transparency loweringmigration costs reducingoverstaysActive dissemination ofinformationSpecific and actionable BLAsPractical pre-departure training(language/culture) with efficiencypedagogy For other receiving countries Creating a system that is politicallyacceptable, and economically beneficial, iscritical.Multi-stakeholder process for policy makingwith a single implementing agencySeasonal vs. non-seasonalLimiting/regulating middlemen costtransparency lowering migration costs reducing overstaysWorker protection measuresWorker screening11

Thank you!

Human Resource Development Services (HRD –Korea) - Skills development - Skills certification - Integrated HR EPS team and centers in 15 countries HUG Korea (Counseling centers for foreign workers) Ministry of Justice (MoJ) Ministry of Foreign Affairs (MoFA) Ministry of Strategy and Finance (MoSF) mmittee Korea Employment Information System (KEIS)

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