Wages paid out to non-Korean nationals residing and working in the country for less than year fell to a 10-year low in May amid sharp decline in migrant workers amid travel restrictions due to pandemic.

According to primary income account data released by Bank of Korea (BOK), the country’s wage balance showed a deficit of $16.3 million in May, more than $30 million narrowed the red a year ago.

Wage balance, a category under primary income account, is data based on estimated wage distributed to foreigners residing in Korea for less than one year.

Korea traditionally records a deficit in wage balance as there are greater Koreans working and earning from abroad than foreigners working in Korea.

In May, the deficit has narrowed significantly as wage distributed to foreign workforce dropped to the lowest level in 10 years.

Foreign workers received total $88.3 million in paycheck in May, which is the lowest monthly level after $76.3 million in June, 2010. It is also the lowest for the month of May after $83.8 million in 2010. The monthly amount dropped 31.3 percent from $128 million in May, last year.

The sharp plunge in wage distributed to foreign workforce comes amid overall drop in the number of foreign workers entering the country due to COVID-19.

According to data from the Ministry of Justice, 35,500 foreigners entered Korea with E-9 non-professional employment visa in the first four months of the year, down 37.3 percent from the same period a year ago.

A total 37,107 foreigners entered the country with H-2 work and visit visa, down 61.7 percent during the same period. The number of foreigners with C-4 short-term employment visa dropped 95.3 percent to 112 and E-10 maritime crew employment visa 13.6 percent to 3,110.

In April, when coronavirus spread globally, 3,477 foreigners entered Korea with E-9, H-2, C-4, E-10 visas, down 91 percent from 37,797 a year ago.

An unnamed BOK official said that demand for foreign workforce in Korea dropped amid fast spreading COVID-19. Entry procedure has also become more complicated, making companies to refrain from hiring foreigners, mainly from China and Southeast Asia, the official added.

Although some countries have lowered entry barrier for foreigners amid eased COVID-19 concern, Korea is likely to refrain from fully opening barriers.

As of Tuesday, Korea added 63 new cases of which 33 were from foreign arrivals, the highest since 40 cases on April 5.

By Song Min-geun and Lee Eun-joo

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]