Promotion of Foreign Worker Employment in Shipbuilding and Deregulation of Marine Industry

Joint Public-Private On-Site Discussion on Regulatory Innovation at Jeonnam Daebul Industrial Complex

[Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] On the 12th, the Ministry of the Interior and Safety and Jeollanam-do held the "Jeonnam Regional Regulatory Innovation On-site Discussion" in Yeongam, Jeonnam, attended by about 180 people including companies facing regulatory difficulties, related experts, local residents, and public officials.

At the event, related companies and residents directly participated to propose regulatory difficulties they experience on-site, and experts provided opinions while relevant ministries responded on the spot to seek reasonable regulatory relief measures.

In particular, discussions focused on improving employment regulations for foreign workers in the shipbuilding industry to address the shortage of shipbuilding workers and easing regulations in marine industries such as new material fishing vessel manufacturing in Jeonnam.

Specifically, the discussion classified two main topics?improvement of foreign worker employment regulations and easing of marine industry regulations?into five detailed tasks for in-depth discussion.

First, shipbuilding companies requested a significant expansion of the employment ratio of foreign workers (E9, non-professional employment workers) compared to domestic workers. The Ministry of Employment and Labor explained recent regulatory improvements such as allowing 1 to 5 additional hires depending on workplace size and abolishing the dual regulation on new employment limits, and stated that they will monitor future labor supply and demand trends to consider further improvements.

Additionally, it was raised that the visa validity period for non-professional employment workers (E9) (maximum 4 years and 10 months) is shorter than the career requirement for skilled worker visas (E-7-4) (5 years of domestic work), making it difficult to transition to skilled worker status without career interruption. In response, the Ministry of Justice announced plans to relax the skilled worker visa career requirement from 5 to 4 years, and additionally to establish a separate quota (400 people) for skilled workers in shipbuilding and expand the overall quota (from 2,000 per year in 2022 to 5,000 per year in 2023) to support stable supply of skilled workers in the shipbuilding industry.

The shipbuilding-related association raised concerns that the requirements for hiring professional foreign workers in the shipbuilding sector (E-7-3, general skilled workers) are strict, and experts emphasized the difficulty for small or newly established companies to meet these requirements. The Ministry of Justice introduced recent institutional improvements such as easing visa issuance requirements reflecting the shipbuilding industry's requests, though not fully to the extent demanded by the association, and stated that they will consider further improvements based on today's discussions.

Shipbuilding companies proposed revising the notification to allow the use of environmentally friendly and fuel-efficient new materials (HDPE) for fishing vessel construction. The Ministry of Oceans and Fisheries agreed with the intent but emphasized the need for safety verification. In response, Han Chang-seop, Vice Minister of the Ministry of the Interior and Safety, requested positive consideration from the perspective of ripple effects, noting similar proposals from other regions (Tongyeong, Jeonbuk, etc.).

Regarding opinions that, considering recent technological advances, the long-maintained visibility requirement for departure (1 km → 500 m) should be relaxed, experts suggested that scientific analysis on the appropriateness of visibility restriction standards should precede. The Ministry of Oceans and Fisheries stated that since departure control standards are directly related to public safety, a cautious approach is necessary.

Meanwhile, prior to the discussion, Vice Minister Han Chang-seop visited companies facing regulatory difficulties in the Daebul National Industrial Complex to listen to their opinions. At this meeting, Yoon In-sook, CEO of Yuil Co., Ltd., proposed that "due to the chronic labor shortage in the shipbuilding industry, expanding employment of foreign workers is necessary, but there are many difficulties due to various restrictions," to which Vice Minister Han responded, "I hope we can find good solutions through today's discussions."

The Ministry of the Interior and Safety plans to actively cooperate with relevant ministries on the issues discussed today and collect opinions from other local governments, ensuring thorough follow-up measures after the discussion to actively contribute to revitalizing the Jeonnam regional economy.

Vice Minister Han Chang-seop of the Ministry of the Interior and Safety said, "If regulations discovered directly by local governments, who understand the hardships and difficulties of local companies and residents well, are improved, the sense of regulatory innovation on the ground will be greater," and added, "We will continue to actively improve regulations related to difficulties in local business activities and residents' lives."