When 'Hallyu' Becomes 'Nihon Hyō': Why Korean Youth Are Rushing to Work in Japan Despite Higher Salaries at Home

According to recently released economic data and forecasts from major institutions, South Korea's 'growth momentum' and 'per capita income' clearly outperform Japan's. However, Reuters reported on the 3rd that many young South Koreans are heading to Japan in search of employment due to difficulties finding jobs domestically—revealing that the reality for Korea's younger generation is less rosy than it appears.

In July, the South Korean government revised its full-year real GDP growth forecast upward by one percentage point from 2% to 3% as part of its second-half economic strategy. Nominal GDP growth reached 12.3%, the highest in nearly 30 years. The International Monetary Fund (IMF) also raised its annual growth forecast for South Korea by 0.7 percentage points to 2.6% in July, reflecting external recognition of Korea's economic recovery.

In contrast to South Korea, which has benefited from the AI boom, Japan is experiencing 'moderate growth with insufficient momentum.' Japan's Cabinet Office revised the first-quarter real GDP annualized growth rate to 1.8% in June, exceeding market expectations. However, due to Middle East conflicts and rising oil prices in the second quarter, the Japanese government has downgraded its GDP growth forecast for fiscal year 2026 (starting April 2026) from 1.3% to 0.9%.

Although there is a clear difference in economic growth between Japan and South Korea, Reuters highlighted a surprising statistic: according to June's latest figures, South Korea's youth unemployment rate stands at 7.0%, while Japan's overall unemployment rate is only 2.5%.

Entrepreneur Mogi Moe says South Korean youth have long faced tough job markets. While studying at Yonsei University, one of South Korea's top schools, she noticed that even the most talented Korean graduates struggled repeatedly to find jobs domestically. To break this deadlock, the 35-year-old Mogi founded the matchmaking platform KOREC in 2019, specifically linking South Korean job seekers with Japanese employers.

At a job fair in Seoul last month, Mogi said: 'I was surprised that such intelligent people couldn't find jobs. Many of them speak Japanese, and I felt they would have better opportunities in Japan, so I wanted to help.'

Structural Gap: Korean Firms Want Ready-to-Work Talent, Japanese Firms Lack Fresh Graduates

Reuters points out that this cross-border job-seeking trend reflects deep structural economic differences between Japan and South Korea. Young South Koreans face a chronic shortage of entry-level positions, as major firms like Samsung prefer hiring experienced professionals. Meanwhile, older employees are retiring later, naturally limiting job openings. In contrast, Japan, facing severe population aging, is struggling with a manpower shortage in its 'shinsotsu saigō' (new graduate hiring and training programs).

Although South Korea's average wages are currently slightly higher than Japan's, the complementary demands between the two countries are rapidly intensifying. South Korea's tech talent platform Wanted Lab and Japan's LAPRAS have both launched cross-border matching services similar to KOREC this year, joining recruitment firm Mynavi. At least three job fairs focused on Japanese companies have already been held in Seoul this year, with exhibitors including Canon's imaging systems division and industrial automation giant Azbil.

The Korea Labor Institute notes that while most foreign workers in Japan hold blue-collar jobs, over 80,000 South Koreans working in Japan typically hold white-collar professional roles in retail, information technology (IT), and game development.

Data from the Human Resources Development Service of Korea shows that 2,257 South Korean youth went to work in Japan through government-funded programs last year—a 47% increase from the previous year (2024). Japan has become the top overseas destination for South Korean youth; in contrast, the number going to the U.S. dropped by 29%.

Language and Cultural Advantage: Korean Talent as a Lifeline for Japanese Companies

Despite occasional friction between Korea and Japan over historical colonial issues, Reuters notes that grassroots ties are deepening comprehensively.

According to Statistics Korea, the number of marriages between South Korean men and Japanese women surged 26% in 2025 compared to the previous year, reaching double the level of 2020. Marriages between South Korean women and Japanese men also rose 29%, far outpacing the stagnant overall international marriage market. Additionally, the number of South Korean tourists visiting Japan has repeatedly hit record highs over the past two years. Today, South Korea—not China or Taiwan—is Japan's largest source of foreign tourists.

'Most people around me who want to work in Japan were already interested in living there,' said Kim Si-hyeon (Kim Si-hyeon, transliteration), a university student attending the KOREC job fair. Many job seekers are attracted by Japanese companies' comprehensive 'on-the-job training' programs—something rarely offered to new graduates in South Korea. A fourth-year Japanese literature major at Dongguk University, Kim said: 'South Korean companies tend to hire experienced people, while Japanese companies are still willing to train newcomers.' She is currently targeting job openings in information technology and artificial intelligence (AI).

Lee Chang-min (Lee Chang-min, transliteration), a professor at Hankuk University of Foreign Studies, analyzed that South Korean talent is highly attractive to Japanese firms: 'Whether in language or culture, the quality of South Korean applicants is astonishingly high. Few foreign applicants can use Japanese with the precision required for actual business operations.'

Tomoya Hattori, head of Japanese consulting firm Energize, said he doesn’t particularly care about an applicant’s nationality, but is impressed by the competitiveness, speed, and diligence of South Korean applicants: 'As long as we have excellent talent, we want to hire them.'

When Lifetime Employment Meets Job-Hopping Culture

As Korean youth flood into Japanese workplaces, hiring foreign talent presents challenges for Japanese companies. KOREC founder Mogi Moe admitted that many young Koreans are accustomed to frequent job-hopping to pursue promotions and higher pay—a challenge for Japanese firms used to the 'lifetime employment system.' 'This is indeed a test for Japanese companies, but the rate of job-hopping among Japanese youth is also increasing. I believe Japanese companies’ mindsets will gradually adjust,' she said.

Professor Lee Chang-min warned that if corporate training periods are too long, lack opportunities for cross-domain skill application, and offer slow promotion paths, the risk of foreign employee turnover will significantly increase. Mogi, who once considered becoming a diplomat and speaks fluent Korean, believes this talent-matching initiative has deeper significance: 'When young South Koreans work in Japan, they interact with Japanese colleagues who may never have had a Korean friend or understood Korean culture. This is the value that private enterprises can create.'