Lee Chang-yong "Care Workforce Issues Must Be Solved with Various Pricing Options"

'Bank of Korea-KDI Labor Market Seminar'
"Emphasizing Side Effects Leads Only to 'Government Support' Conclusion"

[Image source=Yonhap News]

Lee Chang-yong, Governor of the Bank of Korea, emphasized on the 5th that various price options are necessary to solve the manpower shortage in care services. He suggested that it is necessary to consider ways to hire foreign domestic helpers at wages lower than the minimum wage.

During the discussion of Session 1 at the '2024 Bank of Korea-KDI Labor Market Seminar' held on the second floor of the Integrated Annex of the Bank of Korea in Seoul, when concerns about side effects of introducing foreign care workers were raised, Governor Lee said, "If we try to prevent all side effects, it could realistically incur enormous costs," and added, "We must be careful not to let the discussion end with the conclusion that the government must step in to solve the problem by emphasizing the side effects."

This was in response to concerns that hiring foreign domestic helpers at low wages could lead to a decline in the quality of care and a simultaneous deterioration in the treatment of domestic workers.

Earlier in Session 1, Chae Min-seok, Head of Employment Analysis Team at the Bank of Korea’s Research Department, presented on 'Measures to Alleviate the Manpower Shortage and Cost Burden in Care Services.' Chae emphasized that care services are facing worsening manpower shortages and high cost burdens. Proposed solutions included expanding the introduction of foreign workers, including care services in the list of industries eligible for employment permits, and applying minimum wage exceptions for foreign domestic helpers.

In the subsequent discussion, concerns were raised about side effects such as illegal stay issues that could arise from introducing foreign care workers at low wages. In response, Governor Lee said, "If we focus too much on the side effects, we tend to view it from the perspective of the (care service) providers."

He continued, "In such cases, the conclusion often tends to be that 'public assistance is necessary' and 'the government should increase support and subsidies,' but public assistance is not something that comes for free," he stressed.

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