Steel and plant industries struggle with labor shortages amid union opposition to foreign workers

The iron and steel, power generation, and petrochemical plant industries are lamenting a labor shortage and requesting permission to hire foreign workers at construction sites. The construction industry is allowed to employ foreign workers under the employment permit system (E-9 visa), but these sectors are banned from hiring and admitting foreign workers due to concerns about technology leaks and opposition from labor unions.

The Korea Iron & Steel Association submitted a report titled 'Policy tasks for the steel industry desired by the new government' to the co-representatives of the National Assembly's Steel Forum in May. The association requested permission for the employment of foreign workers at construction sites within steel mills to address the labor shortage issue.

The Ministry of Employment and Labor has exempted the employment permit system from applying to construction licenses at construction sites for steel mills, power plants, and petrochemical facilities if they qualify as industrial environmental equipment. This includes construction work for industrial production facilities such as steel and petrochemical plants and power plant equipment.

The steel industry is lamenting the labor shortage. According to the steel association, approximately 2,000 construction workers are needed for maintenance work at steel mills. However, since steel mills are located in suburban areas away from urban centers and local populations are aging, securing qualified permanent workers is challenging.

A representative from the steel industry noted, 'If maintenance is not performed on time, it will significantly disrupt business plans. For safety reasons, it is necessary to relax the regulations on the employment of foreign workers.'