Nepal prepares to send skilled workers to South Korea under E-7 visa, EPS program faces uncertainty

KATHMANDU: The Government of Nepal is moving ahead with preparations to send skilled workers to South Korea under the E-7 visa category, raising concerns over potential impacts on the existing EPS labor program and risks of financial exploitation.

The Ministry of Labor, Employment and Social Security has issued the “Procedure for Sending Skilled Workers to the Republic of Korea 2080,” enabling the deployment of skilled workers through licensed manpower agencies under the E-7 visa scheme. The guideline allows private-sector participation, which marks a significant shift from the existing government-to-government Employment Permit System (EPS).

The procedure, already revised three times, allows for the mobilization of workers if employers offer free visas or cover recruitment costs, mirroring the low-cost structure of the EPS. However, implementation remains stalled due to the absence of demand letter verification from the Nepali Embassy in South Korea.

Officials confirmed that the labor migration process cannot proceed until the embassy certifies the demand letters and records them in the Foreign Employment Management Information System (FEMIS). Despite the new policy, no job orders have been processed as of now.

Ministry officials have expressed concern that the E-7 initiative, while promising on paper, carries significant risks. “Korea has a single labor market,” said one senior official. “The introduction of E-7 could reduce the EPS quota in practice, even though the guideline states otherwise.”

The EPS program, operational since 2008, allows Nepali workers to go to South Korea for up to five years after passing a Korean language and skill test. The program is widely regarded for its transparency and low recruitment cost. Any disruption to the quota or credibility of the EPS model could affect thousands of prospective workers.

Alongside quota concerns, the possibility of financial exploitation by manpower agencies has alarmed officials. Despite existing regulations that cap service fees at NPR 10,000 for destinations like Malaysia and Gulf countries, workers reportedly pay up to NPR 500,000 illegally. There is growing fear that similar or higher amounts—up to NPR 2 million—could be charged for E-7 jobs in Korea, where monthly salaries exceed NPR 300,000.

A labor ministry official noted, “Drafting a law is not difficult, but enforcing it effectively is the real test. If agencies start charging 20 to 25 lakhs per worker, the government must be able to control it.”

The Nepal Association of Foreign Employment Agencies (NAFEA), however, defended the move. Its president, Bhuwan Gurung, claimed that manpower agencies are committed to ethical recruitment under the E-7 visa and will comply with government-defined cost limits.

The South Korean E-7 visa is categorized into four types: E-7-1 (professional), E-7-2 (semi-professional), E-7-3 (general skilled), and E-7-4 (skilled). It allows foreign workers to be employed in over 85 occupations, including management, technical, and expert-level roles. The visa is issued outside the EPS framework and targets skilled labor needs through private-sector engagement.

As of now, job orders collected by manpower companies are on hold pending diplomatic and administrative coordination with the South Korean side.