Euljirowi: "Will Meet Chairman Kang Seok-hoon to Get Responsible Answers"
Korea Development Bank Must Address Overall Shipbuilding Industry Issues as the Leading Policy Financial Institution
[Asia Economy Reporter Koo Chae-eun] Amid the prolonged strike by the subcontractor union at Daewoo Shipbuilding & Marine Engineering (DSME), the Democratic Party's Euljiro Committee has decided to meet with Kang Seok-hoon, Chairman of the Korea Development Bank (KDB), to urge a resolution to the situation.
Regarding the main issue of the strike?the subcontractor union's demand for a 30% wage increase?the Democratic Party recognizes that KDB, as the creditor group and largest shareholder of DSME (holding a 55.7% stake), must resolve the issue of progress payments (construction payments from the primary contractor to the subcontractor). The meeting with Chairman Kang is intended to directly urge a solution to this problem.
According to the Democratic Party on the 20th, the Euljiro Committee plans to hold a meeting with Chairman Kang Seok-hoon of KDB by the end of this month at the latest. The party intends to form a DSME task force (TF), and there is a possibility that the meeting with Chairman Kang will be pursued within the expanded TF framework. Many lawmakers from the Euljiro Committee who visited the sit-in protest site in Geoje on the 12th are expected to be included in the DSME TF.
Woo Won-sik, a member of the Democratic Party of Korea, is giving a lecture titled "Back to the Field" at the "Euljiro Committee Morning Special Lecture - The Euljiro Committee Rising Again" forum held at the National Assembly on the 22nd. Photo by Yoon Dong-ju doso7@
A lawmaker from the Democratic Party's Euljiro Committee explained, “The visit to KDB on the 18th was scheduled over the weekend, so Chairman Kang could not attend due to other commitments, and we only heard from the vice presidents that they would consult with the chairman. We feel the need to hear a responsible response directly from the chairman, so the committee plans to meet with him separately.”
Previously, after visiting the hunger strike site of DSME subcontractor workers in front of KDB headquarters, the Euljiro Committee emphasized KDB's responsibility during a meeting with KDB executives, stating, “A proactive attitude is needed to open the way for resolving the situation.”
On the 19th, President Yoon Suk-yeol hinted at the possibility of deploying public authority amid the prolonged strike by the subcontractor union at Daewoo Shipbuilding & Marine Engineering (DSME), as seen at the DSME Seoul office. The government and ruling party have raised calls for strict measures, citing a 660 billion won operating loss due to the extended strike and the decision of seven partner companies to close, causing significant damage to the local economy. Photo by Moon Ho-nam munonam@
The Democratic Party views the DSME subcontractor union strike as a complex issue involving ▲the relationship between primary and subcontractors, ▲the shipbuilding industry's business conditions, ▲the creditor group’s management system, and ▲local community interests, and believes it cannot be resolved simply through dialogue between subcontractor labor and management. They also hold the position that the use of public authority, as suggested by President Yoon Suk-yeol, would only worsen the situation.
In a phone interview with this outlet, Kang Min-jung, a member of the Euljiro Committee, said, “As a policy bank rather than a profit-driven bank, KDB has the responsibility to oversee the overall issues in the shipbuilding industry.” Woo Won-shik, the inaugural chairman of the Euljiro Committee, also stated in a phone interview, “KDB has the responsibility to examine and resolve the structural problems across the shipbuilding industry.”
Meanwhile, DSME management currently holds the position that they cannot accept the subcontractor union’s demand for a 30% wage increase. Although order conditions are improving, due to the nature of the shipbuilding industry, it takes time for this to be reflected in performance. In fact, DSME recorded a loss of approximately 1.7 trillion KRW last year and posted an operating loss of 470 billion KRW in the first quarter of this year. Since KDB remains the largest shareholder within the creditor group management system, their room for maneuver is also limited.
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