E-card system for construction workers replaced foreign workers with Koreans

The introduction of the construction worker electronic card system has had the effect of replacing foreign workers’ jobs at construction sites with local workers.

On the 20th, the Construction Workers’ Mutual Aid Association announced this through the issue paper ‘Effect Analysis of Construction Workers Electronic Card System’. The electronic card system is a system in which construction workers record their work history by directly tagging the electronic card on a terminal installed at a construction site. It was introduced to prevent omission of reporting for retirement deductions, to improve career management efficiency, and to limit the use of undocumented migrant workers. In November 2020, it began to be applied to businesses with more than 30 billion won in private construction and 10 billion won in public works.

Kang Seung-bok, deputy director of the Mutual Aid Association Research and Research Center, used the propensity score matching method (PSM) to analyze the effect of implementing the e-card system when all conditions of the workplace were the same. As a result, it was confirmed that the number of days to report retirement deductions at workplaces that introduced the electronic card system increased by an average of 10.5 days a month, and the average number of people who reported a month increased by 1.3. The introduction of the electronic card system can be interpreted as having the effect of preventing omissions in reporting the number of working days and the number of workers.

It is also noteworthy that after the implementation of the e-card system, the employment of foreign workers decreased and the employment of domestic workers increased. The number of reporting days for foreign workers by workplace decreased by 13.2 days from 54.8 days a month (6.6 people reported per month) to 41.7 days (6.1 people reported per month) after the e-card system was introduced. On the other hand, the number of reporting days for Korean workers increased from an average of 193.1 days a month to 169.5 days after the introduction of the electronic card system by 23.6 days. The average monthly reported number of people increased by 1.3 from 21.2 to 19.4 after the introduction of the electronic card.

The Mutual Aid Association said, “It is presumed that the implementation of the electronic card system has replaced foreigners with Korean workers.”


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