On July 28, 2008, a new law came into effect in Korea lengthening the time that foreigner laborers can work legally in the country. This regulation applies to lower level workers, often employed in the construction and service industries by both Korean and foreign companies.


Under Korea's Employment Permit System (EPS), foreign workers are allowed three year contracts, with renewal eligibility for an additional two years. In order to renew, however, the workers were previously required to return to their countries of origin for a period of one month. Many employees and managers complained that this system was inefficient and unnecessarily hindered work progress. Under the revised Foreign Workers Employment Law, workers will not be required to leave the country for work permit renewal.


The new law also eases restrictions on employment procedures for foreign workers. In the past, employers were required to choose from a list of foreign workers who had passed Korean language proficiency tests without being able to screen their individual qualifications. The new law allows employers to view worker qualifications and CVs when making employment selections. Companies may also recruit workers directly by way of overseas interviews.


Korean government statistics show that more than 375,000 foreign workers are currently employed in Korea under the Employment Permit System. Nearly 70% of these are overseas Koreans.