Cities hosting major South Korean shipyards are experiencing increasingly intense internal conflicts due to a surge in foreign workers.
South Korean media reports indicate that as the global shipbuilding industry enters a new boom period, major South Korean shipyards have seen a surge in orders. This has exacerbated an already severe labor shortage within the country’s shipbuilding sector. Consequently, the South Korean government and shipbuilders are relying on foreign workers to alleviate the staffing pressure.
However, the practice of South Korea’s shipbuilding industry relying on foreign workers to fill labor shortages has drawn criticism from local residents and unions in shipyard communities. They argue that shipbuilders should attract Korean workers by raising wages and express dissatisfaction with the limited local spending by foreign laborers.
Geoje City, located in South Gyeongsang Province, South Korea, is home to the shipyards of South Korea’s two major shipbuilding giants — Hanwha Ocean and Samsung Heavy Industries. On November 24th, Byun Kwang-yong (transliterated), Mayor of Geoje City, submitted a request to South Korea’s Ministry of Employment and Labor, seeking a reduction in the visa quota for foreign workers. Statistics show that as of October, the number of foreign permanent residents in Geoje City has exceeded 15,000, a more than threefold increase compared to five years ago.
Byun Kwang-yong emphasized that adjusting visa quotas is crucial for achieving mutually beneficial growth between the shipbuilding industry and the regional economy. He noted: “The increase in foreign workers has not promoted their integration into local life nor stimulated their local consumption. By gradually reducing visa quotas, we aim to establish a stable labor structure centered on Korean skilled workers.”
Similar situations have also emerged in Ulsan, South Korea, home to the Ulsan shipyard of HD Hyundai Heavy Industries, another major South Korean shipbuilder.
On November 24th, residents of Ulsan City and local South Korean shipyard workers held a press conference to oppose the plan of Ulsan Mayor Kim Du-cheon (transliterated) to expand the special visa quota for foreign workers.
The plan is reportedly aimed at securing a labor supply for shipyards in the Ulsan region, with 440 foreign workers from Uzbekistan, Thailand, Vietnam, and Indonesia expected to be dispatched to shipyards in the area by the end of next year. The Ulsan City government stated that this initiative will help stabilize the local labor supply and enhance industrial competitiveness.
However, local residents stated: “Overreliance on foreign labor will ultimately weaken the technological capabilities and competitiveness of South Korea’s shipbuilding industry. The influx of short-term foreign workers has led to rising housing vacancy rates and will further undermine the local economy.”
As the primary shipbuilding bases for South Korea’s three major shipbuilding giants, Geoje and Ulsan face severe labor shortages that could significantly impact shipbuilding progress, particularly amid the current global boom in new ship orders.
So far this year, Hanwha Ocean has secured orders for 41 new ships worth approximately $7.7 billion. Samsung Heavy Industries has already secured orders for 39 new merchant ships worth about $6.1 billion, exceeding its annual target. HD Hyundai Heavy Industries has also secured multiple new ship orders this year.