SME Ombudsman to Allow Foreign Workers for Parcel Loading and Unloading Tasks Starting July

Park Ju-bong, Deputy Minister-level Small and Medium Business Ombudsman, is listening to the difficulties of participating companies at a meeting to improve regulations for small and medium-sized enterprises in the Gyeonggi area.
[Photo by Small and Medium Business Ombudsman]

[Asia Economy Reporter Kim Jong-hwa] From July, the employment of foreign workers (H-2) for parcel loading and unloading tasks will be permitted.

Park Ju-bong, Small and Medium Business Ombudsman (vice ministerial level), stated on the 3rd, "At the Foreign Workforce Policy Committee held last February, it was decided to allow the employment of foreign workers (H-2) exclusively for parcel loading and unloading tasks," adding, "This is scheduled to be implemented around July through the revision of the Enforcement Decree of the Immigration Control Act."

Ombudsman Park made these remarks during the 'Small and Medium Business Ombudsman On-site Empathy Meeting' for the Gyeonggi region, held jointly with the Gyeonggi Credit Guarantee Foundation at the Gyeonggi Institute of Economic Science and Technology located in Suwon, Gyeonggi Province.

The meeting was organized to listen to the on-site voices of small and medium enterprises in the Gyeonggi region struggling due to the prolonged COVID-19 pandemic and to discuss solutions together.

Lee Min-woo, Chairman of Gyeonggi Credit Guarantee Foundation, said, "Despite the difficult domestic and international economic situation caused by COVID-19, the regulatory environment for small and medium enterprises remains unchanged," and requested, "Please support Ombudsman Park Ju-bong in encouraging related central government departments and public institutions to conduct progressive reviews."

He continued, "In addition to the recent rise in raw material prices and the prolonged COVID-19 pandemic causing double hardships for small and medium enterprises and small business owners, please raise the regional credit guarantee foundation's guarantee limit, which has been capped at 800 million KRW since 2009, to 1.6 billion KRW."

In response, Ombudsman Park said, "It is regrettable that while the domestic Gross Domestic Product (GDP) has increased by more than 23% over the past 10 years, the guarantee limit has been maintained at 800 million KRW without even reflecting the minimum inflation rate," and added, "I will actively negotiate so that the Ministry of SMEs and Startups can positively consider raising the limit."

CEO A, operating a logistics business, requested, "With the increase in parcel volumes due to non-face-to-face shopping, the manpower shortage for loading and unloading at logistics warehouses is severe. Please allow logistics businesses to hire foreigners just like manufacturing and construction industries," to which Ombudsman Park replied, "Employment will be possible from July."

Ombudsman Park also explained, "Considering the difficulties faced by foreign workers and small and medium enterprises due to the challenges of entry and exit during COVID-19, the government has decided to extend the stay period by one year for employment permit system foreign workers (E-9, H-2) whose domestic stay and employment activity periods expire between April 13 and December 31 of this year."

Additionally, participating companies requested △ inclusion of camping vehicles in the types of vehicles allowed for car rental businesses △ expansion of support for overseas clinical trial costs for cosmetics export companies (from 20% to 70%) △ introduction of a qualification review bidding system for private construction projects △ financial support for companies affected by the global semiconductor shortage.

Ombudsman Park stated, "I will continue to travel nationwide with the belief that 'the answer lies in the field,' listening to the voices of small and medium enterprises," and added, "As a representative of businesses, I will work closely with government ministries to devise solutions for improving unreasonable regulations."

The Small and Medium Business Ombudsman and Gyeonggi Credit Guarantee Foundation have established a so-called 'Regulation Discovery Hotline' and plan to designate a dedicated department for regulatory innovation and hold regular meetings, committing to closely cooperate to promote regulatory innovation in the future.

This content was produced with the assistance of AI translation services.