Hanwha Ocean (formerly Daewoo Shipbuilding & Marine Engineering, DSME) has decided to withdraw its previous lawsuit seeking 47 billion won (approximately $33 million) in damages against five executives of the Geoje Tongyeong Goseong Shipyard Subcontracting Branch of the Korean Metal Workers’ Union (hereinafter referred to as the union). The lawsuit stemmed from a 51-day strike involving a dock occupation.
On October 28, Hanwha Ocean and other relevant parties disclosed that Hanwha Ocean and the labor union submitted a settlement agreement around 1:00 PM and held a joint press conference. The core provision of the settlement agreement stipulates that Hanwha Ocean will unconditionally withdraw the damages lawsuit filed against union activities including the 2022 strike.
On June 2, 2022, 22 union members launched a strike at the then DSME Geoje Yupu Shipyard, demanding a 30% wage increase and recognition of full-time union staff, among other requests.
Following fruitless negotiations with management during the strike, union executives and others climbed onto a structure approximately 25 meters high within the shipyard. Starting June 18, they occupied a Very Large Crude Carrier (VLCC) under construction at Yupu Shipyard for 31 consecutive days to stage a protest. The occupation concluded on July 22 after a negotiation agreement was reached. This marked the first suspension of shipbuilding operations in the yard’s history.
Subsequently, the management filed a lawsuit against five senior union executives, citing massive losses incurred due to the strike. They demanded compensation amounting to 5.8% of the total strike-related damages—800 billion won—equivalent to 47 billion won. The management claimed the strike disrupted the launch operations of the world’s largest single dry dock, which can simultaneously construct four ships.
Following its acquisition by Hanwha Group, DSME has been renamed Hanwha Ocean. The related litigation, which had been suspended after the third hearing concluded in June 2024, has recently resumed.
Hanwha Ocean’s decision to give up the huge claim is closely related to the easing of labor-management relations at Hanwha Ocean’s subcontracting companies. The two sides reached a labor-management agreement in June this year, but this agreement was not easy to come by and was obtained through 97 days of high-altitude protests.