Hanwha Ocean Brings 'Primary-Subcontractor Bonuses' in Shipbuilding Industry to the Forefront

Metalworkers’ Union Demands “Equal Bonus Payments at All Three Major Shipbuilders”
Samsung Heavy: “Ratios Already Equal”... HD Hyundai Heavy: “Highest in the Industry”

At the end of last year, Hanwha Ocean announced that it would apply the same bonus payment ratio to both primary contractors and subcontractors, bringing the long-standing issue of 'primary and subcontractor bonuses' in the shipbuilding industry to the forefront. As the shipbuilding sector enters a phase of recovery, questions have intensified over how performance is distributed, to whom, and based on what criteria.

On January 23, as labor groups continued to demand that all three major shipbuilders align the bonus payment ratios for both primary and subcontractor employees, the discussion expanded beyond Hanwha Ocean to include HD Hyundai Heavy Industries and Samsung Heavy Industries. The previous day, Assemblyman Yoon Jongoh of the Progressive Party, together with four branches of the Korean Metal Workers' Union representing shipbuilding subcontractors (Geoje-Tongyeong-Goseong Shipbuilding Subcontractors Branch, Jeonnam Shipbuilding Subcontractors Branch, Hyundai Heavy Industries In-house Subcontractors Branch, and Welliv Branch), held a press conference at the National Assembly's communication center, pointing out that the bonus amounts for subcontractor employees are lower than the average for regular employees.

Kim Yucheol, Chairman of Hanwha Ocean Branch (from left), Kim Kyungsoo, Chairman of the Local Era Committee, Kim Sunggu, Chairman of Hanwha Ocean In-house Partner Company Council, Kim Minseok, Prime Minister, Kim Heechul, CEO of Hanwha Ocean, Kang Inseok, Chairman of Geoje-Tongyeong-Goseong Shipbuilding Subcontractors Branch, and Kwon Changjun, Vice Minister of Employment and Labor, are taking a commemorative photo at the 'Hanwha Ocean Primary and Subcontractor Win-Win Cooperation Declaration Ceremony' held on the 5th at Hanwha Ocean Seoul Office in Jung-gu, Seoul. Hanwha Ocean

Starting last year, Hanwha Ocean eliminated the gap in bonus payment ratios, which previously stood at 150% of base salary for regular employees and 75% for partner company employees as of 2024. Hanwha Ocean's announcement emphasized the message of 'expanding performance sharing with partner companies.' Given that a significant portion of production processes in shipbuilding is carried out by partner company workers, this was seen as a symbolic declaration to reduce the compensation gap between primary and subcontractor employees. Labor groups also viewed this as a signal that all shipbuilding companies enjoying a boom should move in this direction.

It is known that Samsung Heavy Industries has already been applying the same bonus payment ratio to both primary and subcontractor employees. Regardless of whether the market is strong or weak, the company has used the same wage-based ratio for both groups when calculating bonuses. While there may be differences in the actual bonus amounts due to wage disparities, there has reportedly been little difference in the payment method itself. However, industry observers have pointed out that Samsung Heavy Industries sets a cap of 100% of the monthly base salary, making the overall bonus amounts smaller compared to other shipbuilders.

HD Hyundai Heavy Industries Yard Panorama. HD Hyundai

HD Hyundai Heavy Industries maintains some differences in ratios depending on job category and employment type but is understood to offer the highest overall bonus amounts among the three companies. For the 2025 bonuses to be paid in February, HD Hyundai Heavy Industries has set amounts ranging from 559% to 638% of the standard wage for special positions, junior office workers, office support staff, contract and dispatched workers, and reservist commanders. For production workers, bonuses are differentiated based on evaluation results, but those with a B grade receive the same ratio. In 2024, when Hanwha Ocean paid partner company workers an average bonus of about 1.9 million won per person, HD Hyundai Heavy Industries paid approximately 3.4 million won to its partner company employees.