Identifier
Created
Classification
Origin
06SEOUL4284
2006-12-15 09:05:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Seoul
Cable title:  

NK REFUGEES: THE QUEST FOR STABLE EMPLOYMENT

Tags:  PREF PHUM PGOV PREL KTIP KS KN 
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RUEHBJ/AMEMBASSY BEIJING 1757
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RUDKIA/AMCONSUL CHIANG MAI 0917
RUEHVK/AMCONSUL VLADIVOSTOK 1181
RHMFISS/COMUSKOREA J5 SEOUL KOR
RHHMUNA/CDR USPACOM HONOLULU HI
RHMFISS/COMUSKOREA J2 SEOUL KOR
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UNCLAS SECTION 01 OF 04 SEOUL 004284 

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E.O. 12958: N/A
TAGS: PREF PHUM PGOV PREL KTIP KS KN
SUBJECT: NK REFUGEES: THE QUEST FOR STABLE EMPLOYMENT

UNCLAS SECTION 01 OF 04 SEOUL 004284

SIPDIS

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SENSITIVE

E.O. 12958: N/A
TAGS: PREF PHUM PGOV PREL KTIP KS KN
SUBJECT: NK REFUGEES: THE QUEST FOR STABLE EMPLOYMENT


1. (SBU) SUMMARY: Finding stable employment is probably the
greatest challenge for North Koreans resettling in the ROK.
The ROKG assigns North Korean refugees to employment
officers, provides incentives, recruits employers, and
subsidizes half of North Koreans' salaries to their employers
for two years. Many North Koreans do not take advantage of
such opportunities, however, or prefer to obtain irregular
jobs so they can continue to collect welfare payments from
the government in addition to their wages. Further, while
most North Korean refugees are from marginalized and less
educated groups, ROK law provides that educational and
professional achievements in the North will be recognized in
the ROK. In practice, however, this policy has limited value
in professional fields. END SUMMARY.

STABLE EMPLOYMENT: AN UPHILL BATTLE
--------------


2. (SBU) Competing in the South Korean labor market is the
major challenge for most North Korean refugees. Like other
immigrant populations, North Koreans lack political, social,
and job skills necessary in their new home. The director of
a large non-government North Korean resettlement center told
Poloff that many North Koreans have a difficult time
adjusting to the ROK's capitalist, free-market society. Even
if North Koreans understand capitalist principles in theory,
putting these ideas into practice is difficult for many North
Koreans, especially middle-aged refugees, who are used to
working in a controlled economy. ROK National Human Rights
Commission (NHRC) Chief Human Rights Policy Analyst Shim
Sang-don similarly asserted that, due to differences in the
economic systems, North Koreans often have a weaker work
ethic, and may face difficulties maintaining employment in
the ROK's hard-working society. North Koreans are also
entering a competitive job market where the unemployment rate
among new entrants is 15-20 percent.


3. (SBU) Many North Koreans are from marginalized classes in
North Korea, and would have difficulties in finding "good
jobs" anywhere in the world. According to MOU statistics,
the vast majority of North Korean refugees in the ROK were

hard laborers, farmers, or homemakers in the DPRK.


4. (SBU) Even highly-educated North Koreans may find that
their achievements are worth little in the ROK. Hanawon
Career Counselor Jeon Youn-suk reported that the number of
North Korean refugees with professional degrees or
certificates has increased recently as the number of "planned
defections" among such groups has risen. Under the 1997
Protection Act, North Koreans' academic achievements and
qualifications are recognized in the ROK. In practice,
however, KINU Senior Research Fellow Lee Keum-soon said that
this is difficult because of the vast differences in
education and skills acquired through the North and South
Korean systems. Also, many professions credentials are
granted by private organizations (e.g., the Korean Bar
Association or Korean Medical Association) that do not
recognize such North Korean qualifications, in large part
because training in North Korea would not prepare refugees
for practicing in their fields in the ROK. In addition, some
NGOs also report that North Koreans may have difficulty in
having their credentials recognized if they lack documents to
prove their achievements. North Korea Database Center found
that only half of North Koreans who tried to have their
credentials recognized in the ROK were successful. Kookmin
University scholar Andrei Lankov argued that this group of
mid-level professionals is likely to suffer the most, but be
the most important, after unification.


5. (SBU) According to the 1997 Protection Act, the ROKG

SEOUL 00004284 002 OF 004


offers supplementary education and retraining when refugees'
professional qualifications are not recognized. For example,
Hanawon's Educational Director Pak Yong-sok reported that, if
North Koreans had studied medicine in the DPRK, they may be
able to enter skip the first few years of medical school in
the ROK. According to Hanawon's Jeon, as of late November a
bill was pending before the National Assembly that would make
it easier for North Koreans to have their past achievements
recognized.

EMPLOYMENT UNDERREPORTED
--------------


6. (SBU) KINU's Lee said that many North Koreans have
part-time or temporary jobs that they do not report so that
they can continue to receive unemployment assistance.
Estimating North Koreans' unemployment rate is therefore
difficult; a study by North Korea Database Center estimated
unemployment at 30 percent, while KINU estimates 14.7 percent
unemployment. Other recent surveys estimate North Koreans'
unemployment between 38 and 60 percent. A study by North
Korea Database found that 75 percent of employed North
Koreans hold irregular or day jobs; 57 percent had been
employed in their current jobs less than six months; and 98
percent had changed jobs at least once. Chang Chin-yung, an
employment assistance officer at Seoul's Nambu Employment
Assistance Center, told poloff that many North Korean
refugees have a negative view of stable employment because
they believe that refugees who obtain irregular jobs are able
to receive more money from the government. Indeed, one older
female North Korean refugee complained to poloff that the
ROKG should change its system so that North Korean refugees
could continue to receive their unemployment payments while
working. Chang also reported that some refugees are
constantly worried about their situation due to the
instability the have faced, and fear losing their government
assistance.

HELPING NORTH KOREANS OVERCOME THE CHALLENGES
--------------


7. (SBU) As outlined in septels, the ROK provides North
Korean refugees with an employment protection officer in
their communities who helps North Koreans obtain training and
jobs. MOL also subsidizes 50 percent of North Koreans' wages
for two years. In addition to resettlement assistance, the
ROKG provides additional incentive payments up to KRW 15.4
million (USD 15,400) for North Koreans who complete training
programs or obtain long-term stable employment. A female
North Korean refugee who works as a housekeeper praised the
incentives for refugees maintaining employment for at least
one year. A male student refugee was less positive about the
incentive program, however, noting that it is difficult for
many North Koreans to meet the criteria necessary to receive
the incentive payments, such as maintaining a certain GPA at
University or completing a certain number of training hours.
According to MOU statistics, the number of North Korean
refugees seeking assistance in obtaining jobs increased after
introduction of the incentive program.


8. (SBU) Poloff visited the Nambu Employment Assistance
Center in Yeongdeungpo-gu, Seoul, on November 22. The large
Center, housed in a modern building, was filled with
teller-like stations where Koreans in need of employment
assistance meet with job counselors. Employment officer
Chang told Poloff that the Ministry of Labor's (MOL) main
roles in assisting North Korean refugees are to provide
employment counseling to refugees, help refugees find
suitable employment, and provide subsidies to companies that
employ North Korean refugees. MOL has 60 employment centers

SEOUL 00004284 003 OF 004


throughout the ROK, each of which has an officer designated
to assist North Koreans in that area. According to Chang,
employment officers do not receive lists of North Koreans in
their area because of the sensitivity of such information,
but are referred North Koreans by their welfare officers.
North Koreans may also connect with employment officers
through civil society organizations or learn of them through
advertisements of their activities.


9. (SBU) The Nambu office, which oversees three districts
that are home to 1,300 North Koreans, has been operating a
pilot program since July 2006 to provide more comprehensive
programming to North Korean refugees. The pilot program has
divided North Koreans into three groups based on the time
they have been in the ROK, but is focused primarily on
helping recent Hanawon graduates quickly obtain stable jobs
or enter job training programs. Poloff met with Chang in a
large and well-equipped conference room, which she said is
often used to host group events for North Korean refugees.
Chang said that the Nambu Center's pilot program would be
completed in December, and the Center would complete an
evaluation and distribute a manual to other employment
centers. Because the main emphasis of the program is on
group activities, the program may not be applicable in areas
with only a small number of defectors, Chang said.

JOB TRAINING
--------------


10. (SBU) Some North Koreans are interested in first
receiving job training before looking for employment, Chang
said. Hanawon career counselor Jeon told poloff that Hanawon
recently put more emphasis on job training, which now
comprises 40 percent of Hanawon's curriculum. Since May,
Hanawon has worked closely with the MOL to develop enhanced
vocational training programs, including an exchange program
with a polytechnical school near Hanawon. This experience
allows North Koreans to gain a sense of their interests,
build confidence in their abilities, and provide the training
necessary to get better jobs, Jeon said.


11. (SBU) Chang said that there are several large job
training programs that North Korean refugees tend to be
interested in, but refugees often have a difficult time
adjusting to the classes due to educational gaps with their
South Korean peers. MOL and the Nambu Center are therefore
working to develop training programs tailored for North
Korean refugees. NK Net President Han Ki-hong argued that
that job-training programs are focused narrowly on vocational
and computer skills. The ROK should also provide programs
and incentives for North Koreans to learn English and other
skills, Han said.

ENTERING THE WORKING WORLD
--------------


12. (SBU) Some North Koreans want to immediately obtain a job
without receiving additional job training. Hanawon's Jeon
said that skilled jobs are difficult to obtain, and because
many North Koreans want to obtain jobs right away, they often
end-up with blue collar jobs. When North Koreans are ready
to seek employment, Chang said that MOL tries to match
refugees to employers based on their interests and abilities.
Chang reported that the Employment Center conducts outreach
to companies to encourage them to hire North Korean refugees.
She said that many companies are hesitant to employ North
Korean refugees because they do not have any experience with
them, not because they are North Koreans. North Korea
Database found that of North Koreans believe South Korean
employers refrain from employing them for several reasons: 34

SEOUL 00004284 004 OF 004


percent cited prejudice; 29 percent identified differences in
ability compared to South Korean colleagues; 29 percent said
because their background from North Korea is not relevant;
and 6.5 percent identified a preference for South Korean or
foreign workers.


13. (SBU) Chang said that the Center provides employers with
information to address any prejudices against refugees that
employers might have. As part of its pilot program, the
Center holds events for North Korean refugees and prospective
employers so that employers can identify potential employees.
The Center also accompanies North Koreans to job interviews,
and encourages companies to conduct interviews at the Center
to help North Koreans feel more comfortable.


14. (SBU) Finding a full-time job is only half the battle,
however, as Chang reported that many North Koreans quit their
jobs without any notice. In the past, many North Koreans
also were not very hard-working, Chang said. In recent
years, however, more refugees are diligent and work very
hard, which is helping to improve employers' image of North
Koreans. Chang also noted that many North Koreans face
difficulties in the workplace due to poor health. North
Korea Database found that 24 percent of North Koreans
identified health problems as a reason for difficulty at work
(13 percent said lack of ability, 14 percent cited difficult
relationships with co-workers, 16 percent cited low wages of
lack of benefits, 2 percent cited unfairness in promotions,
and 16 percent identified no problems).


15. (SBU) Many companies that hire North Korean refugees also
employ foreign workers, and some refugees may quit because of
poor working conditions, Chang said. The employment office
encourages North Korean refugees to report problems with
working conditions or discrimination to their employment
officer, but Chang said that in most cases refugees quit
their jobs before informing the employer or employment office
of problems.


16. (SBU) To try to prevent problems with job discrimination
or poor working conditions, the MOL requires employers who
hire refugees to renew their government assistance agreement
every three months, according to Chang. Chang said that MOL
also tries to help North Koreans obtain jobs with companies
that are members of the ROK's general insurance program. She
reported that employment officers also follow-up with
refugees once they obtain jobs to ensure that they are being
treated properly. Chang said that, because the MOL provides
subsidies to companies who employ North Korean refugees for
their salaries, employment officers also check periodically
with the companies and refugees to ensure that the refugees
are still employed at the companies receiving those benefits.



17. (SBU) While experience with refugees who quit suddenly
makes some employers hesitant to hire refugees, Chang
believed positive signs are starting to show, with more
employers now willing to hire North Korean refugees. Still,
MOU statistics indicate that more North Koreans are looking
for jobs than the number of companies willing to hire them.
As of June 2006, only 400 North Koreans had obtained regular
jobs for which the ROKG paid employment subsidies, while the
majority were employed in blue-collar jobs.
VERSHBOW