Agreement Signed to Expand Sustainable Win-Win Cooperation
Government, Local Authorities, Primary Contractors, and Partners Join Forces
On September 24, North Gyeongsang Province signed an agreement at the Commodore Hotel Gyeongju to promote the sustainable expansion of win-win cooperation in the region's automotive parts industry.
This agreement aims to bridge the gaps in wages and welfare between primary (main) contractors and partner companies in the automotive parts sector, while also fostering employment stability and building a cooperative ecosystem within the region.
The signing ceremony was attended by Lee Cheolwoo, Governor of North Gyeongsang Province; Kim Yujin, Director of Labor Policy at the Ministry of Employment and Labor; Joo Nakyoung, Mayor of Gyeongju; Choi Kimoon, Mayor of Yeongcheon; Cho Hyunil, Mayor of Gyeongsan; as well as representatives from primary partner companies and subcontractors of Hyundai and Kia Motors.
Centered around Gyeongju, Yeongcheon, and Gyeongsan, North Gyeongsang Province is home to 1,813 of the nation’s 12,808 automotive parts-related businesses, accounting for 14% of the total and ranking third nationwide.
In particular, these companies employ more than 36,000 workers and generate annual sales of 18 trillion won. However, due to the impact of tariffs and other factors, uncertainty for local businesses is growing, making a paradigm shift necessary to overcome these challenges and achieve a new leap forward.
In response, North Gyeongsang Province secured national funding in March by being selected for the Ministry of Employment and Labor’s region-led dual structure improvement support project. In April, the province established and began operating a win-win consultative body, laying the groundwork for addressing labor market disparities in the automotive parts industry.
Under this agreement, long-term service incentives will be provided to 160 employees of local automotive parts partner companies. In addition, partner companies will receive support for autonomous welfare proposals, improvements to safety and welfare environments, provision of safety supplies, and enhancements to profitability, production, and quality.
This agreement is significant in that primary contractors, partner companies, the government, and local governments will jointly pursue effective initiatives in four key areas: win-win governance, welfare cooperation, technology cooperation, and talent development.
Lee Cheolwoo, Governor of North Gyeongsang Province, stated, "Through this agreement, by fulfilling the roles and responsibilities of each organization, we hope to provide workers with a safe workplace and support partner companies in improving their technological capabilities and productivity, thereby narrowing labor market disparities and achieving shared growth. We will do our utmost to ensure that the North Gyeongsang model becomes a leading example for future growth."
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