Emergency Economic Ministers' Meeting
Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is speaking at the Emergency Economic Ministers' Meeting held at the Government Seoul Office in Jongno-gu, Seoul on the morning of the 19th. 2022.10.19 Photo by Yonhap News
[Asia Economy Sejong=Reporter Son Seon-hee] Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho announced on the 19th that "the special extended working period for the shipbuilding industry will be temporarily extended from 90 days to 180 days per year." He also emphasized, "We will invest more than 140 billion won in 2023 in the development of core technologies such as eco-friendly ships and autonomous ships, whose demand is expected to increase in the future."
Deputy Prime Minister Choo held an emergency economic ministers' meeting at the Government Complex Seoul in the morning and stated, "We will actively promote the strategy to secure a super-gap in the shipbuilding industry." The super-gap securing strategy for the shipbuilding industry announced that day is a follow-up measure to the "International Balance of Payments Response Direction" discussed on the 7th under President Yoon Seok-yeol's chairmanship.
Regarding the manpower issue, which is considered the biggest difficulty in the shipbuilding industry, Deputy Prime Minister Choo said, "We will actively utilize foreign workers by improving the visa system and additionally train more than 3,000 domestic production workers annually." To secure foreign manpower, the government will establish a separate quota for shipbuilding within the 'Skilled Worker Conversion System' starting next year. On the other hand, the quota for skilled workers such as welders and painters was abolished from April. Also, the issuance of non-specialized worker visas has been expanded since August.
Deputy Prime Minister Choo also said, "We will focus investment on technology development to secure the future ship market and promote productivity improvement through digital transformation," announcing an investment of 140 billion won in related technology development next year. He added, "We will also support technology development related to future ships, such as core equipment for offshore wind power installation vessels and hydrogen production facilities," and "Starting with AI-utilized design in 2023, we will gradually promote the digitalization of all ship manufacturing processes."
Along with this, timely issuance of refund guarantees (RG) for advance payments by small and medium shipbuilders and overseas marketing support will also be carried out.
The government also plans to improve the dual employment structure of 'primary and subcontractors,' which has been a chronic problem in the shipbuilding industry. Deputy Prime Minister Choo pointed out, "This long-standing issue has been raised as a structural problem that lowers industrial productivity and deepens unfairness," adding, "In particular, this problem has intensified the treatment and wage gap between primary and subcontracted workers, causing a vicious cycle of manpower outflow and weakened competitiveness."
He continued, "We will actively promote the improvement of the dual structure based on voluntary coexistence and cooperation between primary and subcontractor labor and management," and said, "We will mediate the signing of coexistence and development agreements between primary and subcontractor labor and management, and support necessary institutional improvements and financial assistance." He added, "Along with establishing fair order by improving unreasonable subcontracting practices, we will also expand wage systems based on job and skill levels," and "We will promote the inflow of new workers such as youth and further expand incentives for retention, including improved working conditions and welfare."
Meanwhile, Deputy Prime Minister Choo expressed concern about the recent economic situation, saying, "Global downside risks to the economy are expanding due to high-level inflation persistence and high-intensity financial tightening by major countries," and "Our economy's difficulties will continue for a considerable period." He emphasized, "We will prioritize price stability and livelihood stabilization in policy, while accelerating bold regulatory innovation to enhance economic vitality of the private sector and companies, and structural improvement of the current account balance."
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