Following Hanwha Ocean’s 2025 wage agreement in early August, Samsung Heavy Industries recently concluded its annual negotiations. Of South Korea’s three largest shipbuilders, only HD Hyundai Heavy Industries remains to conclude negotiations, and labor-capital conflict continues to escalate.
Recently, over 3,700 employees affiliated with the Samsung Heavy Industries Workers’ Council voted on a tentative agreement for the 2025 wage negotiations, approving it with a 50.5% approval rate.
The agreement includes: an average base wage increase of 133,196 won (approximately $96.54); a labor-management harmony bonus of 5 million won (approximately $3,624.00); and an increase in welfare points of 1 million won (approximately $724.80, a 100,000 won increase from last year).
With the passing of the provisional agreement, Samsung Heavy Industries has become the second major South Korean shipbuilder to complete wage negotiations, following Hanwha Ocean.
The core terms of the agreement previously reached between Hanwha Ocean’s labor and management include: a base wage increase of 123,262 won (approximately $89.34, including 23,262 won for seniority-based promotions), and the distribution of a one-time bonus of 5.2 million won (approximately $3,768.96).
Notably, Hanwha Ocean’s wage agreement is seen as the beginning of a structural transformation in the overall compensation system of South Korea’s shipbuilding industry, characterized by the introduction of a job-difficulty-based pay system and a substantial increase in wages driven by base salary.
Currently, among South Korea’s three major shipbuilders, only HD Hyundai Heavy Industries has yet to complete this year’s wage negotiations.