Addressing the labor shortage in South Korea through Skilled Indian Labor :
An Econometric Analysis

Aarav Chhawchharia

doi:10.46609/IJSSER.2025.v10i08.023

Title: Addressing the labor shortage in South Korea through Skilled Indian Labor : An Econometric Analysis
Authors: Aarav Chhawchharia
Journal: International Journal of Social Science and Economic Research (IJSSER) ISSN: 2455-8834 Volume: 10 Issue: 8 Publication Date: August 2025 DOI: 10.46609/IJSSER.2025.v10i08.023
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Aarav Chhawchharia Hong Kong International School, Hong Kong SAR
MLA 8 Chhawchharia, Aarav. "Addressing the labor shortage in South Korea through Skilled Indian Labor : An Econometric Analysis." Int. j. of Social Science and Economic Research, vol. 10, no. 8, Aug. 2025, pp. 3386-3420, doi.org/10.46609/IJSSER.2025.v10i08.023. Accessed Aug. 2025. APA 6 Chhawchharia, A. (2025, August). Addressing the labor shortage in South Korea through Skilled Indian Labor : An Econometric Analysis. Int. j. of Social Science and Economic Research, 10(8), 3386-3420. Retrieved from https://doi.org/10.46609/IJSSER.2025.v10i08.023 Chicago Chhawchharia, Aarav. "Addressing the labor shortage in South Korea through Skilled Indian Labor : An Econometric Analysis." Int. j. of Social Science and Economic Research 10, no. 8 (August 2025), 3386-3420. Accessed August, 2025. https://doi.org/10.46609/IJSSER.2025.v10i08.023.
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ABSTRACT: This paper investigates the potential of structured skilled migration from India to South Korea as, firstly, a strategic response to Korea’s demographic decline and labour shortages and, secondly, a broader economic collaboration to enhance capital exchange. While South Korea faces a rapidly aging workforce and projected deficits in high-skill sectors, India continues to generate a surplus of highly skilled graduates. Using quantitative benchmarking and econometric analysis, the paper shows that India’s labour supply in engineering, ICT, and research fields is more than sufficient to meet Korea’s projected shortages over the coming decades. The analysis extends beyond supply metrics to assess the relative economic impact of Indian migrants specifically. The analysis finds that they contribute disproportionately through higher per capita productivity, greater fiscal participation, and elevated rates of entrepreneurship. A difference-in-differences approach, drawing on U.S. immigration reforms, further validates the causal link between Indian migration and host-country economic benefit. Lastly, comparative policy case studies from Singapore, the United States, and the United Kingdom were used to highlight current immigration and economic frameworks, underscoring gaps and opportunities. Ultimately, this paper presents key policy suggestions directed at stakeholders such as the Indian Embassy in Seoul and the Indian Chamber of Commerce in Korea, arguing that a systematic India-Korea migration framework represents not only a labour market adjustment, but a strategic economic lever to enhance growth, innovation, and bilateral competitiveness.

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