WHY WILL SOUTH KOREA’S FILIPINO HELPERS EARN SO MUCH MORE THAN IN HONG KONG, SINGAPORE?

Foreign domestic workers will enjoy high wages under a government pilot - raising affordability concerns among Korean families seeking care

South Korea's pilot project to recruit foreign domestic workers is off to a shaky start, with critics warning that guaranteed minimum wages could make them unaffordable for ordinary households.

Experts are sceptical that the initiative will truly tackle the underlying labour shortages plaguing the country's care sector, which is already grappling with the world's lowest birth rate.

There are also concerns that carers and domestic helpers might abandon their designated roles in search of better-paying jobs, potentially swelling South Korea's population of half a million undocumented immigrant workers.

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South Korea's fertility rate plumbed new depths last year as more women delayed childbirth or opted out of motherhood altogether, citing career disruptions and the soaring costs of raising children. Official data reveals a stark decline in the average expected number of babies per South Korean woman, plummeting to a historic low of 0.72 in 2023 from 0.78 the previous year.

"South Korea, which was classified as an ageing country in 2000, became an aged country in 2018. Next year, it will be the world's first super-aged country," Hur Joon-soo, a social welfare professor at Soongsil University, told This Week in Asia. By 2025, nearly 20 million of South Korea's 52 million residents will be over 65, he said.

"I am concerned that bringing in foreign helpers will only serve as a temporary fix," Hur said, emphasising the need for expanded state-backed care services.

Bae Chan-min, a representative from the feminist activist group Womenlink, echoed this sentiment, highlighting that the number of people working in the country's care sector, such as day care and hospital workers, was dwindling due to low wages and challenging working conditions.

"To address the root cause of this issue, we should first improve working conditions and wages rather than relying on short-term solutions like hiring foreign carers," she said.

"There would also be legal and diplomatic issues if foreign carers are excluded from minimum wage protections," Bae said, referencing South Korea's ratification of the International Labour Organization's minimum wage convention.

The debate over how to treat foreign domestic workers gained urgency with the arrival in Seoul earlier this month of 100 professionally trained Filipinos for a pilot programme run by the Seoul Metropolitan Government and the Labour Ministry.

Under an agreement with the Philippine government, these workers will receive the same minimum wage as their Korean counterparts. The minimum wage in South Korea is currently set at 9,860 won (US$7.23), meaning these Filipinos stand to earn more than 2 million won (US$1,500) per month for a 52-hour work week - along with benefits from state insurance policies, including healthcare.

This wage is notably higher than what domestic workers typically earn in Singapore or Hong Kong, where monthly salaries range from 500,000 won to 800,000 won. By contrast, the average monthly income for South Korean women in their 30s is about 3.2 million won, while local day care workers charge around 3 million won per month. Chinese helpers of Korean origin earn around 2.5 million won.

"The purpose of introducing this project was to give parents more choices at a reasonable cost," said Seoul City Mayor Oh Se-hoon on Tuesday during a seminar in parliament. "However, unless the high cost issue of hiring foreign helpers is addressed, this could become an unrealistic option for middle-income families or those with lower incomes."

Minister of Employment and Labour nominee Kim Moon-soo has opposed any exemption from minimum wage standards for foreign helpers, arguing that such measures would conflict with the constitution, international standards, and domestic laws.

Why shouldn't we have the same access to foreign helpers as Hong Kong and Singapore?

Na Kyung-won, South Korea lawmaker

At Tuesday's seminar, lawmaker Na Kyung-won, a prominent figure from the ruling conservative People Power Party, expressed concern that the high costs associated with Seoul's pilot programme might render care services inaccessible for average citizens.

According to the Seoul government, one in three households applying for foreign domestic workers is situated in the affluent districts of southern Seoul, leading to complaints that only wealthy residents will benefit from the scheme.

"As a mother of two children myself, I understand how crucial it is to have a housekeeper's help when juggling work and childcare," Na said.

"The lack of access to affordable housekeepers is a significant factor that discourages women from having children," she added, noting that the demand for helpers will only increase as South Korea's society rapidly ages. "Why shouldn't we have the same access to foreign helpers as Hong Kong and Singapore?"

Ahn, a wealthy mother of a 10-year-old who asked to be identified by her last name only, told This Week in Asia that her friends' Filipino housemaids - many of whom are undocumented and underpaid - have grown increasingly assertive since the announcement of guaranteed minimum wages for imported helpers.

"They are very agitated by the news, demanding higher wages and threatening to quit. This policy is only disrupting the care service market," she said.

Kim Hyun-kyung, a mother of two young children, said she found the cost of hiring a local helper overwhelming. A domestic helper, or "sitter auntie", charges between 3-3.5 million won for five days work, or up to 4 million won for a live-in helper.

"It's a huge financial burden when most of your salary goes toward paying a day care provider, so I decided to quit my job and stay home with my children," Kim said.

Ha Se-yeon, an expectant mother, expressed a preference for hiring Korean helpers due to concerns about language barriers and cultural differences.

"Priority should be given to expanding public day care centres and extending parental leave, rather than importing foreign helpers," she said.