The Busan Metropolitan Government is launching a win-win support program to address structural disparities between prime contractors and subcontractors in the shipbuilding industry. The strategy aims to build a sustainable ecosystem by improving working conditions and welfare.
Busan announced on July 1 that it will pursue the "Shipbuilding Industry Regional Win-Win Gap Reduction Support Project." The program was selected through the Ministry of Employment and Labor's "Regional Win-Win Workplace Creation Project" public competition, with a total investment of 2.78 billion won including 1.9 billion won in central government funds.
Unlike regions dominated by large shipyards, Busan designed its win-win model to strengthen the "industrial mid-tier" — reflecting the city's industrial characteristics, where mid-sized shipyards and equipment manufacturers are concentrated.
Notably, this marks the first time nationwide that seven anchor companies are directly contributing funds in a public-private partnership structure. The participating companies — HJ Heavy Industries, SB Sunbo, Oriental Precision, Daeyang Electric, KTE, Panasia and Donghwa Entec — are investing a combined 400 million won in matching funds to improve welfare and safety for subcontractor workers. The model draws attention as it goes beyond conventional government-funded support by having prime contractors directly share responsibility.
The city structured the program around five initiatives reflecting on-site demand. Key components include settlement bonuses to help new hires during their initial adjustment period, retention incentives for skilled workers, safety equipment support, joint workplace environment improvements, and welfare benefits including vacation allowances and health checkups.
Busan also plans to establish a win-win consultative body involving the Ministry of Employment and Labor, companies and experts. The body will monitor program implementation and identify additional tasks. Through this structure, the city aims to operate a standing cooperative framework to bridge gaps in wages, working conditions and overall welfare.
The city plans to use the program to build a regional win-win model linking employment, welfare and workplace improvements, laying the groundwork for restoring competitiveness in the shipbuilding industry.
"Bridging the gap between prime contractors and subcontractors is an essential task for strengthening industrial competitiveness amid the shipbuilding recovery," a city official said. "We will build a win-win ecosystem where prime contractors and subcontractors grow together, establishing the foundation for the shipbuilding industry's renewed leap forward."