[Exclusive] Yoon to Ease 'Shipbuilding Labor Shortage'... Begins Formulating Comprehensive Measures to Retain Key Personnel

Presidential Office and Related Ministries Prepare Comprehensive Measures to Retain Key Personnel in the Joseon Industry
Verify Adequate Staffing for Ship Quality Maintenance and Monitor Key Personnel Outflow
President Yoon Meets Joseon Industry Entrepreneurs, Urges 'Talent Retention and Acquisition Plans'

The government is preparing a comprehensive response plan to retain key personnel in the shipbuilding industry. The Presidential Office and related ministries are mobilizing all resources to examine the supply and demand situation of shipbuilding manpower and establish measures to retain key personnel, including reviewing cases of workforce outflow. Since President Yoon Seok-yeol has met with shipbuilding industry stakeholders to discuss the labor shortage, the plan is to present an immediate support-focused remedy by the end of the year at the latest.

According to the Presidential Office on the 3rd, the Ministry of Trade, Industry and Energy and other related ministries and agencies have begun formulating countermeasures to retain key personnel in the shipbuilding industry. A senior government official explained, "Since the shipbuilding order cliff in 2016, the industry has suffered a prolonged slump, leading to a significant decrease in production personnel, and now disruptions are feared not only in production but also in exports. We plan to work together with the Presidential Office to address everything from specific criteria for key personnel mentioned by the industry to institutional incentives."

[Image source=Yonhap News]

This reflects the fact that the domestic shipbuilding industry has entered a boom period again. In the first quarter of this year, domestic shipbuilding accounted for 40% of the global ship market (based on order value, $9.4 billion), achieving the world's number one order performance. It secured 17 out of 19 globally ordered large LNG carriers, representing 90%, showcasing a competitive edge over rival countries in the high value-added and eco-friendly ship market. The order backlog has already reached 38.68 million CGT, the highest level since 2011, securing more than three years of work. The problem is the labor shortage. The shipbuilding industry estimates that by the end of this year, about 14,000 workers will be lacking.

As a priority, the government decided to first verify the specific level of adequate personnel required to maintain ship quality even during downturns. Given the nature of the shipbuilding industry, where manpower supply and demand fluctuate significantly depending on market conditions, the goal is to find the minimum standard necessary to maintain 'technical capability' and establish support measures accordingly. A Presidential Office official said, "Considering that the market has improved since 2021 and manpower demand has surged, we plan to focus on manpower deployment. Once the related ministries complete their investigation, we will jointly review and present a comprehensive plan."

Checks on workforce outflow are also underway. In strategic national assets like semiconductors, not only technology leakage but also workforce outflow has become a serious issue, and it is judged that the outflow of key personnel in areas such as design in the shipbuilding industry has already begun in earnest. It is known that the Ministry of Industry and the Ministry of Justice are currently preparing countermeasures by sharing cases of both workforce and technology outflow in the shipbuilding sector.

The 'Shipbuilding Industry Super-Gap Securing Strategy' jointly announced by related ministries last year is also undergoing a mid-term review. At that time, to alleviate the labor shortage, measures such as ▲expanding the annual allowable hours for special extended work ▲extending the period for production workforce hiring subsidies ▲enacting laws for the commercialization of autonomous ships ▲issuing additional advance payment refund guarantees through consultations with financial institutions were proposed, but these were adjusted to reflect industry opinions that there were limitations in their practical effectiveness on the ground.

It has been confirmed that President Yoon had already been briefed on the labor shortage in the shipbuilding industry, apart from semiconductors, and had instructed preparations for countermeasures. Concerned about labor shortages in key industries such as semiconductors, he repeatedly urged the establishment of mid- to long-term talent development plans. Recently, to address the shipbuilding labor issue, he even sent Minister of Justice Han Dong-hoon to a shipyard in Yeongam, Jeollanam-do, to promote the expansion of foreign skilled manpower as a proposed solution.

The day before, he held a dinner with businesspeople from the Jeonbuk region, emphasizing the necessity of nurturing talent. At the dinner, Han Young-seok, Vice Chairman of HD Hyundai Heavy Industries, appealed, "Considering the current state, shipbuilding could experience a second boom, but the problem is the shortage of manpower," adding, "If the manpower issue is not resolved, it could become a disaster." President Yoon responded, "If companies need manpower but cannot find it domestically, they should seek it overseas. When I meet with foreign leaders, I often request that they send more of their workers to Korea."

The 'overseas manpower acquisition' mentioned by President Yoon has already been laid the groundwork. The government has dramatically expanded the quota for skilled foreign workers (E-7) from 2,000 last year to 35,000, about 17 times more. In the second half of this year, a tailored visa policy to supply necessary manpower in a timely manner is also being prepared. A government official said, "Although the government and industry are jointly proposing various support measures, there are limits to achieving immediate effects. We will accelerate the preparation of supplementary measures so that the domestic shipbuilding industry can actively operate during this order boom that has come after several years."

This content was produced with the assistance of AI translation services.