Kathmandu, 25 Jul: The government has issued the “Procedure for Sending Skilled Workers to the Republic of Korea 2080,” opening the door for sending workers through the private sector.
According to this procedure, which has been amended three times so far, workers can be sent at a minimum cost—similar to the EPS system—if the employer provides a free visa or agrees to hire the workers at zero cost.
However, despite the procedure being established, the process of sending workers has not moved forward yet, as the Nepali Embassy in South Korea has not begun the verification of demand letters.
This new arrangement is seen as potentially impacting the Employment Permit System (EPS) and increasing the risk of financial exploitation by manpower companies — a concern that officials at the Ministry of Labor have also expressed.
According to one official from the ministry, although the new provision creates a good opportunity in principle, there are serious risks hidden behind it.
First Risk: Impact on the EPS System
According to an official from the Ministry, the biggest concern is that this new system could affect the currently well-functioning EPS (Employment Permit System) program.
The official explained, “Korea has a single labor market. If workers start going through the private sector under the E-7 visa, there’s a risk that it could lead to a reduction in the quota under the EPS program.” Although the phrase “without affecting the EPS” was included during the drafting of the procedure, implementing that in practice will be challenging, the official noted. “Writing it down is one thing, but practical execution may be quite different,” he said.
Second and More Serious Risk: Uncontrolled Financial Exploitation
The most alarming aspect of the new arrangement is the potential for financial exploitation by manpower companies. Currently, in Gulf countries and Malaysia, despite the government setting the service fee at NPR 10,000, workers are being illegally charged between NPR 400,000 to 500,000. The key concern is: if the government is unable to control such exploitation in those regions, how will it prevent manpower agencies from charging NPR 1.5 to 2 million for jobs in Korea, where monthly salaries exceed NPR 300,000?
Even though the Ministry has established laws, it has not been able to provide a clear answer on whether the government can effectively control these illegal practices in reality.
“Making laws is not the hard part; the real challenge is in their implementation,” another ministry official said. “If an unhealthy competition arises in the name of sending workers to Korea, where agents collect NPR 2 to 2.5 million, can the state effectively monitor and stop that? The biggest challenge lies in the state’s regulatory capacity.”
Why Has the Process Stalled?
Although the procedure has been introduced, the demand letters submitted by manpower companies have not moved forward. The primary reason is that the Nepali Embassy in South Korea has yet to begin the verification of these demand letters.
Only after the embassy authenticates the demand letters and enters them into the Foreign Employment Information Management System (FEMIS) can processes like labor approval proceed. Since this procedure involves officials from the Ministry of Foreign Affairs as well, its delay has prevented the full implementation of the new system.
While the government’s policy has the potential to open new opportunities for Nepali workers, concerns have been raised that weak government oversight and the exploitative tendencies of manpower companies could lead to increased risks instead.
Ministry officials have warned that this could mark the beginning of a new chapter of financial exploitation and even threaten the stability of the established EPS program.
However, Bhuvan Gurung, President of the Nepal Association of Foreign Employment Agencies, stated that there would be no issues with manpower agencies sending workers under the E-7 visa. He claimed that the process is moving forward ethically and that only minimal fees will be charged. According to him, the government itself will set the fee ceiling.
What is the E-7 Visa?
Korea has been bringing workers from 16 countries, including Nepal, through the EPS (Employment Permit System). Under this system, workers take language and skill tests before going to Korea for a period of five years.
Apart from this, Korea sends skilled workers from EPS-implemented countries, including Nepal, through the E-7 visa program.
Accordingly, Nepal has started sending workers to Korea outside the EPS system through private sector business-to-business (B2B) arrangements, within quotas set by Korea.
The E-7 visa system allows skilled workers to be employed in Korea under different categories: E-7-1 (Professional), E-7-2 (Semi-Professional), E-7-3 (General Skilled Worker), and E-7-4 (Skilled Worker).
Under this visa, workers can be employed in 85 different occupations, ranging from managers to experts and specialists.
