On September 28, South Korean mid-sized shipbuilder HJ Shipbuilding & Construction (HJSC) announced that its management and labor union had reached an agreement on wages and collective bargaining for 2026 on September 16; the agreement was subsequently approved with 69.4% of the vote in a union ballot held the following day (September 17). The official signing ceremony for the 2026 wage and collective bargaining agreement took place on September 28.
HJ Shipbuilding & Constructions’ management and labor union began negotiations in May and, after more than four months of talks, ultimately became the first company in South Korea’s shipbuilding industry to complete its 2026 wage negotiations. Samsung Heavy Industries followed closely behind, announcing on September 23 that it had finalized its wage agreement, which was subsequently approved by union members.
Under the agreement, HJ Shipbuilding & Construction agreed to raise employees’ monthly base salaries by 80,000 won (approximately US$59.53) and to provide a performance bonus of 6 million won (approximately US$4,464.60) for 2026, as well as a settlement bonus of 2 million won (approximately US$1,488.20).
It is particularly noteworthy that HJ Shipbuilding & Construction has reached an agreement ahead of other major South Korean shipbuilders, who are still grappling with their own wage negotiations. The company stated that the agreement reflects a consensus between labor and management to lay the groundwork for sustainable growth by leveraging the industry’s recovery and improved corporate profitability.
As a key player among South Korea’s mid-sized shipbuilders, HJ Shipbuilding & Construction’s “smooth” conclusion of the 2026 wage agreement is closely linked to the improvement in its operating profit. In the first half of 2026, the company posted an operating profit of 89.4 billion won (approximately US$66.5 million)—an increase of more than eightfold compared to the KRW 10.8 billion recorded in the same period last year—and achieved a turnaround to profitability with a net profit of 88.1 billion won (approximately US$65.6 million), contrasting with a net loss of 1.1 billion won a year earlier.
HJ Shipbuilding & Construction saw improved earnings in the first half of this year, driven primarily by strong growth in its shipbuilding division; this segment posted an operating profit of 81.7 billion won, accounting for the vast majority of the company’s total operating profit.
The company plans to leverage this agreement as a springboard to enhance production efficiency and technical capabilities, focusing on strengthening its competitiveness in core areas such as eco-friendly and high-value-added vessels, specialized ships, and naval vessel maintenance, repair, and overhaul (MRO) services.