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Home > Industry

Chronic Labor Shortage Hits Korea’s Tech Sector: "Hiring Newcomers is No Longer an Option, But a Necessity"

KO YONG-CHUL Reporter / Updated : 2026-01-01 03:48:27
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Despite a steady increase in the number of industrial technical workers, South Korea’s tech sectors continue to grapple with a chronic labor shortage. A structural mismatch between supply and demand has kept the vacancy rate stagnant for five consecutive years, forcing companies to shift their recruitment strategies from "experienced-only" to "hiring anyone willing to learn."

Stagnant Vacancy Rates Despite Growth
According to the "2025 Industrial Technical Workforce Supply and Demand Survey" released by the Ministry of Trade, Industry and Energy, the total number of technical workers reached 1,735,669 at the end of last year—a 1.1% increase from the previous year. Technical personnel now account for 34.0% of the total workforce in businesses with 10 or more employees.

However, the "shortage figure" (the number of unfilled positions) rose to 39,834, an increase of 1.6%. The overall shortage rate remains stuck at 2.2%, a figure that has shown no significant improvement over the last half-decade. Analysts suggest that while the supply of workers is growing, it cannot keep pace with the rapidly evolving demands of modern industry.

Growth in Semis and Bio, Slump in Textiles
The trend is even more pronounced within the 12 mainstay industries. While the total workforce in these sectors grew for the fourth consecutive year to approximately 1.15 million, the performance was uneven:

High Growth: Semiconductor and Bio-health sectors saw a robust 4% increase in their workforce. Software and IT business sectors also maintained steady growth.
Decline: Traditional industries such as Display, Textiles, and Chemicals saw a contraction in their workforce.
Despite the growth in high-tech fields, the shortage rate for these mainstay industries sits at 2.6%. Sectors like Software, Chemicals, and Bio-health face even steeper challenges, with vacancy rates hovering between 3% and 4%.

A Shift in Hiring Strategy: The Rise of the Newcomer
The most notable shift in this year's data is the change in recruitment behavior. While companies have traditionally favored experienced "plug-and-play" talent, the prolonged labor crunch is forcing a change in tactics.

Last year, the growth rate for hiring newcomers (2.3%) outpaced that of experienced hires (1.4%). This marks the first time in five years that the proportion of new recruits has expanded relative to experienced workers. Industry experts interpret this as a sign that companies, unable to find seasoned professionals in a competitive market, are now focusing on securing and training fresh talent to fill the gap.

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