Korean Firms Shifted Overseas Labor to U.S. and Europe
Data from 2025 shows companies redirected workforces away from China toward Western markets over the last decade.
Updated on Sept. 25, 2026 in Employment
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South Korean companies significantly altered their global workforce distribution between 2016 and 2025, moving employees from China to the United States and Eastern Europe. This shift follows an expansion in overseas production for semiconductors, batteries, and electric vehicles.
Why it matters
The transition reflects a strategic pivot in international manufacturing as South Korean firms prioritize growth in the U.S. and Visegrad Four nations. Bilateral social security agreements helped these companies manage the costs of this redeployment by preventing duplicate insurance premiums.
From 2016 to 2025, the number of Korean workers exempt from host-country insurance premiums in the U.S. grew by 144.8%, while participation in China dropped by 34.9%. The total savings for Korean workers abroad reached approximately 4.3774 trillion won.
The players
Ministry of Health and Welfare
This South Korean government agency manages national pension enrollments and tracks workforce data under international social security agreements.
The details
Companies utilized bilateral social security agreements to keep dispatched workers enrolled in South Korea's pension system while operating abroad. Ministry of Health and Welfare data shows these policies saved workers and firms a combined 3.7479 trillion won in premiums during the decade.
Timeline
2016 marked the baseline year for social security exemption tracking.
Korean worker numbers in the U.S. reached 16,299 in 2022.
Worker counts in the U.S. climbed to 20,787 in 2023.
Headcount in the U.S. surged to 27,098 in 2024.
2025 served as the final year of the reported workforce data.
Macro View
This labor shift follows the pattern of the Visegrad Four social security cooperation, which has allowed for greater flexibility in workforce deployment. These moves reflect broader industrial cycles where companies migrate production bases to align with evolving global supply chain priorities.
The shift in corporate workforce deployment may influence local production capacity and job availability in the affected regions. For businesses operating internationally, utilizing bilateral agreements remains a critical tool for managing labor costs and pension obligations.
The takeaway
The move underscores how bilateral social security agreements facilitate international business expansion by lowering administrative and financial hurdles. Companies looking to relocate production may find similar pacts essential for maintaining employee benefits while scaling operations abroad.
Further reading
For more information on global labor trends, visit the Employment section.
Source note: This article includes information reported by 조선일보.
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