South Korea’s fertility rate, which reached a historic low of 0.78 in 2022, is the lowest in the world. Despite the government’s efforts over the past 17 years, including an expenditure of 380 trillion won (approximately US$284 billion) on various fertility-boosting incentives, the birth rate has continued to plummet.
The National Assembly Budget Office in Seoul has warned that the country could be the first in the world to disappear due to this demographic decline. South Korean President Yoon Suk Yeol’s administration has recognised that drastic measures are needed to reverse this trend.
One such measure is the introduction of foreign nannies, which aims to ease the childcare burden on working parents, particularly in dual-income households, and ultimately increase the birth rate.
What is the new policy?
As part of the government’s strategy, 100 Filipino nannies will be allowed to work in South Korea starting Tuesday. This is only the beginning, with plans to bring in approximately 1,200 foreign nannies by the first half of 2025.
These nannies, aged between 24 to 38, hold the Caregiving National Certification Level II Certificate from the Philippine government and have undergone extensive training, reported Seoul-based The Korea Herald. Their skills include child care, housekeeping, and basic Korean language proficiency.
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The nannies will work under an E-9 visa, which permits employment in non-professional sectors, and will be part of a pilot programme restricted to Seoul residents. This six-month programme is intended to provide affordable childcare services to households with children under 12, single-parent families, and those with multiple children.
Priority will be given to families with younger children, and the programme is designed to assist families regardless of their income levels.
Who is paying for this?
While the introduction of foreign nannies is seen as a potential solution to South Korea’s childcare challenges, the cost remains a significant hurdle. According to the Seoul Metropolitan Government, hiring a foreign nanny for eight hours a day could cost households around 2.38 million won per month, nearly half the average monthly income of Korean households.
This has led to concerns about the affordability of the programme for average Korean families. “We are seeing complaints about the cost burden of Filipino foreign domestic helpers,” said You Hye-mi, senior secretary to the president, in a recent radio interview. “So, we are trying to explore ways to mitigate an individual household’s cost burden of hiring them.”
The programme has also faced criticism from labour activists and migrant rights groups. During a National Assembly audit last year, Seoul Mayor Oh Se-hoon proposed hiring foreign nannies at a monthly cost of approximately 1 million won, which is significantly lower than the minimum wage in South Korea.
This proposal was heavily criticised for not meeting international labour standards, with the Ministry of Employment and Labour eventually setting the hiring cost at 9,860 won per hour, in line with the national minimum wage.
Furthermore, Rep. Cho Jung-hun of the Transition Korea party proposed a bill that would exclude migrant domestic helpers from the minimum wage law requirement, arguing that wages for such workers should be aligned with those in their home countries, reported Seoul-based Korea JoongAng Daily.
However, this proposal has been met with severe criticism from human rights organisations, who argue that it infringes on the rights of foreign workers and violates International Labour Organisation (ILO) standards.
Will this scheme work?
The introduction of foreign nannies is part of a broader government effort to boost female workforce participation, which is seen as essential for improving the country’s birth rate. The number of dual-income households in South Korea has steadily increased, reaching 5.82 million in 2021.
However, many women still leave the workforce due to childcare responsibilities, with 597,000 women quitting their jobs in 2022 alone, citing childcare as the primary reason.
By providing more affordable childcare options, the government hopes to create a more conducive environment for young couples to have children, thereby addressing the declining birth rate.
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However, experts have expressed caution, warning that it may be too soon to implement the pilot programme without first addressing issues related to illegal immigration and the potential exploitation of foreign workers.
Korea JoongAng Daily quoted Professor Jeong Jae-youn of Myongji University’s Graduate School of International Exchange & Management who criticised the government for not having adequate regulations in place to manage the influx of foreign workers. “The number of immigrants staying in Korea illegally has been on the rise, with over 410,000 out of 2.14 million foreigners currently in the country illegally,” he noted. This is a significant increase from a decade ago, when the number was 183,000.
The South Korean Labour Ministry has indicated that the programme could be expanded if successful, but it will first evaluate the outcomes of the initial six-month period.
With inputs from agencies