United Nations Public Service Awards Case Studies

The Republic of Korea is one of the main labor-receiving countries of Asia where approximately 670,000 migrant workers are currently employed, with 50,000 more added each year. These migrant workers are mostly unskilled laborers. The［Migrant & Business Friendly Recruitment System］(“the Initiative”) is an initiative to innovate the recruitment process of migrant workers to deliver a more transparent, fair and efficient system.

Before the implementation of the Initiative, the admittance of migrant workers into Korea was driven and managed primarily by the private sector, resulting in undue financial burden on the workers, unequal employment opportunities in Korea, and a corrupt recruitment process. Although the laws and policies on labor migration were government purview, the actual market was directed in large part by Korean employers’ association and private agencies.

Prior to the Initiative, there was no standardized process for the selection of migrant workers in Korea. The obvious disparity in numbers between those seeking employment and actual opportunities available created intense competition in the low-end labor market. Korean employers’ association and agencies of the origin countries would use extremely subjective tools such as interviews or informal resume screening and no electronic system for integrated information management existed. Because the private agencies were ultimately the decision-making parties in the selection process, neither the workers nor the employers’ needs were satisfied. Complaints regarding demands of illegal commissions were frequently lodged and the fairness and transparency of the overall recruitment process were under constant and increasing suspicion.

Once in Korea, migrant workers often found themselves burdened with huge debts, fleeing their designated workplaces in search of higher wages, to be taken advantage of by other unscrupulous employers. This would, in turn, mean higher hiring costs to other Korean employers and in some extreme cases not only violations of labor rights for the migrant workers but also infringement on their human rights as well. Eventually, the already shaky reputation of the recruitment process was aggravated, leading to a comprehensive devaluation of migrant labor.
The most glaring cause of these problems could be attributed to having the market under the control of intermediaries, namely private agencies, and not the employers or the workers. In other words, the absence of public administration was the reason for the system’s failure.

What is the initiative about? (the solution)
As a migration policy, Korean Employment Permit System(“EPS”) was launched by Ministry of Employment and Labor(“MOEL”) of Republic of Korea in 2004. To realize EPS, the Human Resources Development Service of Korea (“HRD Korea”), MOEL-affiliated organization, developed a system that would select migrant workers through an objective criterion to build a job-seeker pool and would also provide assistance with labor contracts. This recruitment system is the Initiative(Migrant & Business Friendly Recruitment System), including the planning and support of the immigration process of migrant workers to Korea by HRD Korea. The first step of the fair recruitment process, Test of Proficiency in Korean(“ EPS-TOPIK”), is a test to evaluate an applicant’s Korean language proficiency. Applicants who have passed EPS-TOPIK and a medical check-up are then allowed to submit job applications which are registered by their local government and transmitted via an electronic database to HRD Korea. HRD Korea then performs preliminary screening of the applications and verifies the information as necessary to build a roster of eligible workers. Employers in Korea may then select employees from this roster and HRD Korea relays the offered labor contract to the individual who can choose to accept or not. The process is monitored at every stage and is accessible to both the migrant workers and the Korean employers. The Initiative excludes the need for any other intermediaries such as private brokers and the recruitment process is decided on and controlled by the employers and workers themselves. Through the Initiative, migrant workers may have equal opportunities for recruitment and are protected from unreasonable monetary demands. Moreover, HRD Korea does not require any fees or charges for their services and this decreased financial burden on the migrant workers, which goes a long way to their stable integration into Korean society. Korean employers can use the Initiative to solve their labor shortage effectively, with the wholly legal and planned recruitment process, which not only secures a stable workforce but also reduces employment cost. Furthermore, the Initiative provides developing countries the peace of mind that their citizens are guaranteed equal recruitment opportunities through a transparent government-sponsored process. Finally, the Republic of Korea will be able to reduce social costs caused by illegal migration and labor, and even correct the industry imbalance of her domestic labor market.

Who proposed the solution, who implemented it and who were the stakeholders?
Under the direction of MOEL, HRD Korea took an active role as the core of this Initiative(Migrant & Business Friendly Recruitment System). In 2003, a task force team was organized at HRD Korea to solve the problems of the existing recruitment system and to innovate the whole process. The team overhauled the recruitment process, especially the introductory step, and planned to set up infrastructure according to it. HRD Korea is a public organization which is in charge of professional certification exams, labor competency development, and overseas employment in Korea and has tangible and intangible infrastructure for the development of human resources and management of the domestic labor market. Although the Ministry of Employment and Labor and the Ministry of Justice were consulted extensively, the personnel and support of the project came from HRD Korea. Additionally, HRD Korea developed the computer software and network to be utilized by the Initiative and provided an education program for migrant workers to adapt well to Korean society.

Describe how and when the initiative was implemented by answering these questions
a. What were the strategies used to implement the initiative? In no more than 500 words, provide a summary of the main objectives and strategies of the initiative, how they were established and by whom.
The founding objective of the Initiative(Migrant & Business Friendly Recruitment System) was the minimization of the financial burden of not only migrant workers but also of Korean employers, the protection of migrant workers' rights and improvement of public administration in migration labor through the realization of transparent, fair recruitment. - Equal Opportunity Wage disparities between Korea and the migrant worker’s country were usually the cause of their increased financial burden during the recruitment process: Most potential migrant workers had to bear the high cost of the hiring process. With a lack of information about overseas recruitment and employment, hopeful workers would often fall victim to private brokers demanding unreasonable commissions. A precondition for the implementation of the Initiative was that equal opportunity should be given to anyone who is qualified and wants to apply for employment in Korea. For this, HRD Korea developed the Korean language test EPS-TOPIK. The test has successfully been conducted in each sending country and has become a reliable stepping stone in providing equal recruitment opportunities and the prevention of fraudulent or dishonest activities in the recruitment process. Moreover, the test also provides an incentive for applicants to study the Korean language and to familiarize themselves with Korean culture and society. - Management by Specialized EPS IT system Every step of the Initiative – EPS-TOPIK, registration of migrant workers' information, management of the rosters, signing of the labor contract – is organized and processed by the specialized information technology system(“EPS IT system”) installed not only in Korea but also at each sending country. With the establishment and utilization of EPS IT system, the Initiative was setup beyond the limits of area and time. - Partnerships with Sending Countries Under the EPS, there are 15 sending countries – Vietnam, the Philippines, Thailand, Mongolia, Indonesia, Sri Lanka, China, Uzbekistan, Pakistan, Cambodia, Nepal, Myanmar, Kyrgyz, Bangladesh, Timor Leste - which signed MOU with Ministry of Employment and Labor of Republic of Korea. Korea signed cooperative agreements(MOU) with each sending country to ensure close partnerships and mutual support in the building of transparent and efficient migrant-labor public administrations. - Monitoring the Process For successful implementation of the Initiative, HRD Korea dispatched its staff to all fifteen sending countries to setup regional EPS Centers. EPS Centers focus on monitoring the recruitment process in each country and support the Initiative’s smooth implementation locally.

b. What were the key development and implementation steps and the chronology? No more than 500 words
- Setting up Infrastructure for the Initiative (2001~2004) HRD Korea began preliminary research on labor recruitment systems in 2001 and founded a task force team in August of 2003 to propose a draft agenda of the initiative. In February of 2004, HRD Korea organized a permanent bureau for the Initiative and set out to establish overseas branches (“EPS Center”) in sending countries, beginning in December of the same year. The EPS IT system was also completed and launched in 2004. - Further Development of the System (2006~2007) In 2006, HRD Korea began to establish ‘Migrant Worker Support Centers’ in Korea: Currently, eight such centers are in operation nationwide. During this period, EPS-TOPIK was first developed and the ‘Employment and Sojourn Supporting Service’ was launched with an aim to offer support for smoother and more productive relationships between migrant workers and their Korean employers. For migrant workers who plan to return to their countries, HRD Korea also began providing ‘Skill and Business Start’ training.’ - Results of the Initiative (2008~) Since the Initiative formal launch in 2004, migrant labor recruitment has become a transparent, low-cost process through which almost 43,000 workers are hired each year. More significantly, the financial burden of recruitment by the migrant workers has reduced and the social problem of illegal habitation and employment has decreased dramatically. The most important result of the Initiative’s implementation, though, is how much it has been able to contribute to the protection of the rights of the migrant workers: This has been the achievement that renders the Initiative a successful public administration innovation.

c. What were the main obstacles encountered? How were they overcome? No more than 500 words
The first and most glaring obstacle HRD Korea encountered in creating the Initiative(Migrant & Business Friendly Recruitment System) was the fact that there was no base organization or system to build upon – the securing of human resources and financial support was that much more difficult due to this absence of foundation. Additionally, a new IT system had to be created to manage the Initiative that could also overcome the poor IT infrastructure of the regional developing countries and cooperative relations had to be built quickly and sincerely with neighboring governments to ensure stable operations of the Initiative. HRD Korea worked to persuade the executive and legislative branches of the government to secure the necessary staff and budget. In addition, HRD Korea has strived to promote the Initiative domestically and internationally in order to encourage the use of it and public comprehension of its objectives. HRD Korea has been able to draw cooperation agreements from various government organizations. Teams of HRD Korea staff have visited sending countries to introduce the Initiative and to install the necessary IT systems. Training has been provided to local EPS representatives and supplies IT maintenance support for the Initiative. HRD Korea also actively seeks feedback and cooperation from sending countries through various channels such as ILO partnership programs. The Initiative was not a project without its hiccups and mistakes. HRD Korea, however, has worked hard to fix any such problems by collecting opinions and research from conferences and partnership workshops with stakeholders and making sure the Initiative reflects those efforts.

d. What resources were used for the initiative and what were its key benefits? In no more than 500 words, specify what were the financial, technical and human resources’ costs associated with this initiative. Describe how resources were mobilized
- Financial Resources HRD Korea secures its budget from the Korean government each year. Korean employers seeking migrant labor are also charged minimal fees for the recruiting process. - Human Resources HRD Korea organized a task force team in 2003 for the effective implementation and systematic management of the Initiative. The task force team collected research and relevant materials on migration and labor policies. The team also gathered feedback and advice from various local and international organizations. After seven months of this preparation, the team was converted to a permanent bureau with three teams at the headquarters of HRD Korea. Financial and human resources were also allotted to 24 local branches for the nationwide implementation of the Initiative. In July of 2004, HRD Korea hired foreign-language (Thai, Vietnamese, and Indonesian etc.) proficient staff. HRD Korea currently manages fifteen Overseas EPS Centers in sending countries, the first of which have been in operation since December of 2004.

Is the initiative sustainable and transferable?
- Steady Demand of Migrant Labor and the Increased Attraction of the Korean Labor Market With exceptionally low birthrates and a rapidly aging society, the Korean workforce shortage problem is expected to worsen. Small and medium-sized corporations in Korea have traditionally borne the brunt of this problem due to their undue reputation of poor working conditions since the 1990s. This has culminated in the increased demand for migrant workers in Korea. The Korean labor market is well known as stable and attractive, with high wages and protection of workers' rights. It is understandable, therefore, that the size of the regional workforce that desires employment in Korea has increased consistently over the years. The Initiative(Migrant & Business Friendly Recruitment System) is clearly sustainable, with evidence of steady labor demand and a growing number of migration workforces. The Initiative has proven to be a success and the yearly number of EPS-TOPIK applicants continues to rise at exceptional rates, one of the many proofs that the Initiative has well-achieved what it initially set out to do. - Transfer Possibilities Through the Initiative, the rights of migrant workers can be protected and the chance to be employed is given equally to migrant workers at minimal cost. The well-being and protection of rights of migrant workers will continue to be one of the main concerns of a global community. For this reason, the Initiative can and should be a model system, easily implemented and replicated, for other host countries and their labor recruitment processes.

What are the impact of your initiative and the lessons learned?
The Initiative(Migrant & Business Friendly Recruitment System) aims not only to provide a sufficient labor force for Korean businesses but also to promote migrant workers' rights through a transparent recruitment process at minimal cost. Per these goals, one of the most obvious changes brought by the Initiative was the reduction in migration costs borne by each migrant worker: Under the previous system, approximately 3,500 USD was required for a migrant worker to be hired in Korea, after the implementation of the Initiative, the costs now average 1,000 USD. The Initiative has also helped enhance the reliability and predictability of the recruitment of migrant workers and is directly linked to a decline in illegal employment and habitation in Korea. In 2003, under the previous recruitment system, an estimated 22.7% of migrant workers in Korea were believed to have non-legal status. Six years after the Initiative has been launched, though, in 2010, that rate has dropped to 13.6% – with the implementation of the Initiative, only 7.6% of migrant workers who have entered Korea through the Initiative are now believed to have non-legal status. A decrease of illegal residents is also closely related to an improvement of migrant workers' human rights: Legal migrant workers are protected by the Ministry of Employment and Labor and other relevant organizations. Moreover, they are even entitled to services and insurance benefits that may be purchased to protect their rights. Korean businesses also reap benefits from the Initiative. First of all, the Initiative lets employers select employees according to their needs. Since the selection rosters always contain a certain amount of data on each migrant worker, Korean employers may make reasonable recruitment plans for their businesses. Secondly, HRD Korea, as a public proxy organization functions as a hub that performs initial selection, labor contract mediation, provides support for work permit issues and even arranges each worker’s entry schedule. The individual employer’s hiring expenses are clearly reduced accordingly. Additionally, HRD Korea provides vocational training to new entrants, of which most small and medium-sized businesses would not be able to provide due to a lack of funds and facilities. Restrictive labor and migration policies are generally adopted to control the flow of the workforce and solve perceived social problems caused by illegal aliens. These policies, however, are also known to be rather limited in their results. The implementation and experience of the Initiative shows that pursuing and prioritizing the benefit of the concerned parties – the employers and employees – while seeking a transparent public system can bear better results than simple restrictions.


Institution Name:		Human Resources Development Service of Korea
Institution Type:		Public Organization
Contact Person:		Ho-yoeng Choi
Title:		Manager of Employment Planning Team
Telephone/ Fax:		82-2-3271-9421
Institution's / Project's Website:		82-2-3271-9470
E-mail:		mac5058@nate.com
Address:		370-4 Gongduck-dong, Mapo-gu
Postal Code:		121-757
City:		Seoul
State/Province:
Country:

The Problem

Solution and Key Benefits

Actors and Stakeholders

(a) Strategies

(b) Implementation

(c) Overcoming Obstacles

(d) Use of Resources

Sustainability and Transferability

Lessons Learned

Contact Information