On March 13, Thailand’s labor minister, Phipat Ratchakitprakarn, discreetly visited Seoul to address the collaboration between Thailand and South Korea in tackling labor shortages in the shipbuilding industry. During his visit, significant discussions culminated in the signing of a memorandum of understanding (MOU) between the minister and representatives from three major South Korean shipbuilding companies — HD Korea Shipbuilding & Offshore Engineering, Hanwha Ocean, and Samsung Heavy Industries. The MOU aimed to formalize plans for sending an additional 3,000 Thai workers to South Korea, reflecting efforts to address chronic shortages of skilled labor in the South Korean shipbuilding industry.
This collaboration responds to the pressing need within the South Korean shipbuilding sector, which has faced a shortage of skilled technical workers, leading to a surge in the employment of foreign workers, particularly from Thailand. Thai workers are highly esteemed for their exceptional work ethic, making them valuable assets within South Korean shipyards. The industry’s growth, following a prolonged downturn, has intensified the demand for skilled labor, prompting major shipbuilders to expand their hiring of foreign workers.
According to the South Korean Ministry of Trade, Industry, and Energy, the shipbuilding industry saw a substantial increase in foreign hires, with skilled workers holding E-7 and E-9 visas comprising a significant portion. During the first three quarters of last year, new hires in the shipbuilding industry numbered 14,359, with foreign workers holding E-7 (6,966) and E-9 visas (5,373) accounting for 86%, while domestic hires stood at a mere 2,020.
Currently, out of approximately 93,000 workers in the South Korean shipbuilding industry, around 15,500 (16%) are foreign workers. As the proportion of foreign workers continues to rise, the importance of effective management strategies has become increasingly apparent. Companies like HD Hyundai Heavy Industries have implemented regular skills assessments, supplementary education programs, and qualification management examinations to ensure the effective integration and management of foreign workers. Hanwha Ocean has taken proactive steps by creating pictograms illustrating compliance measures in multiple languages to enhance workplace safety and communication.
Despite these efforts, concerns remain regarding attrition among foreign workers, who may seek higher-paying opportunities elsewhere, such as in the semiconductor industry. A recent survey by the Korean Metal Workers’ Union revealed that a significant percentage of foreign workers expressed a desire to transition to other workplaces due to perceived low wages relative to the intensity of labor. Last year, among 410 foreign workers employed in South Korean shipyards, 63.7% expressed a desire to transition to other workplaces if given the opportunity, citing ‘low wages compared to the intensity of labor’ as the primary reason (67.2%).
