SEOUL, July 29 (Bernama) -- President Lee Myung-bak instructed his policymakers Thursday to lift restrictions on the number of foreign workers allowed into South Korea, saying it is urgent to resolve the chronic workforce shortages at small-and medium-sized firms, South Korea's Yonhap news agency reported.

Lee also reiterated his calls for the social responsibility of larger companies to prosper together with smaller ones.

"An urgent task is to resolve the chronic labour shortage at small- and medium-sized companies," Lee said in a weekly economic policy meeting, ordering a foremost increase of the quota of foreign workers to the level of previous years.

The government cut the number of new foreign workers allowed here by about one-third last year as part of efforts to boost employment among locals hit by a global economic crisis.

The foreign labour quota has been slashed to 34,000 people this year from about 100,000 in 2008.

At the same time, troubles of small-and medium-sized firms deepened, in contrast to conglomerates who chalked up huge profits with the recovery of the world's economy.

The president said conglomerates should pursue co-prosperity with smaller ones, calling it a matter of corporate ethics.

The government, however, will not intervene, the president said.

"Voluntary co-prosperity is important, and coercive one is meaningless," Lee was quoted as saying.

-- BERNAMA