Shipbuilding workforce in South Korea increases for first time in 9 years

South Korea’s shipbuilding industry experienced its first workforce increase in nearly a decade in 2023, driven by an influx of foreign workers, government data shows. After enduring a prolonged downturn in the 2010s, the sector has rebounded since 2020 but continues to grapple with severe labor shortages, as many skilled workers have not returned. While government efforts to attract foreign labor have provided some relief, the industry still faces a significant shortfall of skilled personnel.

A survey by the Ministry of Trade, Industry and Energy revealed that the number of technical workers in the shipbuilding industry—including roles in research and development, skilled trades, and management—rose to 58,528 by the end of 2023, a 0.8% increase from 58,042 in 2022. This marked a reversal after years of decline, during which the workforce shrank from 69,766 in 2014 to its lowest point in nearly a decade.

The modest recovery is largely attributed to a surge in foreign workers. The number of foreign technical staff in the shipbuilding sector nearly tripled, rising from 877 in 2022 to 2,563 in 2023. Their share of the total workforce increased from 1.5% to 4.4% during the same period.

To address the labor shortage, the government expanded its Skilled Worker Points System Visa (E-7-4) program in 2023, allocating 400 additional visas specifically for the shipbuilding industry. Visa processing times were reduced from five weeks to 10 days, and the cap on foreign workers per company was temporarily raised from 20% to 30% of the domestic workforce for two years. Additionally, the requirement for foreign welders to submit work experience certificates was waived during this period.

“While we’ve seen an increase in foreign welders and other skilled laborers, the numbers are still insufficient given the workload,” said a representative from a shipbuilding firm.

Nationally, South Korea’s technical workforce across all industries reached 1.71 million at the end of 2023, a 1% increase from the previous year. However, labor shortages also grew, with the gap rising by 1.9% year-on-year to 39,190 unfilled positions.
Source: The Chosun Daily