Securing 5.8 Billion KRW in National Funding to Address Workforce Shortages in Key Industries
Changwon Special City in Gyeongnam has been selected for an employment support project by the Ministry of Employment and Labor, securing 5.8 billion KRW in national funding.
According to Changwon City on the 10th, as a 'win-win cooperation' atmosphere is spreading to voluntarily address the dual structure issues such as wages and welfare within industries, the city formed a consortium with Gyeongnam Province and neighboring cities and counties. They applied for and were finally selected in the following areas: ▲Region-led Dual Structure Improvement Support Project (Aerospace Industry), ▲Regional Plus Job Project (Shipbuilding Industry), and ▲Industry-specific Win-Win Agreement Expansion Support Project (Automotive Parts Industry).
The aerospace industry has a significant ripple effect both upstream and downstream. Changwon is home to more than 100 companies, including the anchor company Hanwha Aerospace and other aerospace parts manufacturers (C313), ranking first in the province for number of businesses and second for number of employees. This year, the goal is to support '240 workers and 8 companies.'
Support includes incentives for training prospective hires, incentives for skilled workers, work-family balance incentives, job retention subsidies, welfare benefits for employees, as well as leap incentives, and support for improving employment and working conditions for companies.
The shipbuilding industry is expected to see the largest increase in jobs among the nation's top 10 industries in the first half of this year, due to a surge in global ship orders. In Changwon, K Shipbuilding, which is strengthening its competitiveness in the eco-friendly ship market, and about 130 related companies are expected to thrive. However, the industry continues to face recruitment difficulties due to low wages and a reluctance to work in shipbuilding, and the ongoing influx of foreign workers has not resolved the labor shortage.
In response, Changwon City, together with Gyeongnam Province, plans to invest a total project budget of 3.1 billion KRW this year to provide employment incentives, job fairs, and special lectures to strengthen job-seeking capabilities. In particular, campaigns to encourage job retention and improve perceptions of the shipbuilding industry will also be promoted.
The automotive-related industry accounts for the largest share (32%) of Changwon's manufacturing sales, with about 390 small and medium-sized automotive parts companies in the city, making it a highly influential sector in the real economy. However, the automotive industry is also facing a deepening labor shortage due to avoidance of production jobs and a dual structure between finished car manufacturers and partner companies.
Changwon Special City Mayor Hong Nam-pyo said, "I am pleased that we can now support Changwon’s key industries such as aerospace, shipbuilding, and automotive parts through this project selection," and added, "We plan to actively promote this so that many companies in Changwon can benefit."
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