Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Hanwha Ocean mired in conflict with subcontracted workers over bonus payment
Ships are under construction at Hanwha Ocean's shipyard on Geoje Island, South Gyeongsang Province, Nov. 27, 2025. Yonhap
By Park Jae-hyuk
Unionized subcontracted workers at Hanwha Ocean’s Geoje shipyard in South Gyeongsang Province have denounced the company, accusing it of breaking a promise to align the ratio of in-house subcontracted workers’ performance-based bonuses to their base salaries with that of the company’s direct employees — a pledge praised by President Lee Jae Myung in December.
After Hanwha Ocean distributed performance-based bonuses ahead of the Lunar New Year holiday, the workers claimed the company had continued to discriminate against them.
“Unlike direct employees, whose length of service did not affect the ratio of their performance-based bonuses to base pay, the ratio for subcontracted workers varied depending on how many years they had worked at the shipyard,” the workers said in a statement Thursday.
“Each of the 4,000 migrant subcontracted workers received a performance-based bonus equal to 46.8 percent of what Korean subcontracted workers with the same tenure received.”
The union also said that employees of Welliv, the unit managing cafeterias and other amenities at the shipyard, did not receive any performance-based bonuses because the company is not classified as an “in-house” subcontractor.
On Dec. 11, President Lee publicly praised Hanwha Ocean’s decision to provide some 15,000 partner company workers with incentives at the same rate as direct employees, calling the move a “desirable” corporate culture.
Last year, Hanwha Ocean employees received incentives equivalent to 150 percent of their base salary, while partner company workers were paid about half that level, around 75 percent.
Hanwha Ocean said it allocated funds to in-house partner companies based on the same incentive rate applied to Hanwha Ocean employees, but does not have the authority to interfere with each subcontractor’s decision on how to pay these bonuses.
"In the case of partner company employees, the incentive rate is determined based on rules within each company, such as years of service, meaning there may be differences from individual to individual," Hanwha Ocean said in a statement.
"Under current law, incentive payments to employees of in-house partner companies are decided according to each partner company’s internal standards, and Hanwha Ocean cannot verify specific compensation details."
In the case of migrant subcontracted workers, the company said those employed by Hanwha Ocean and those working for in-house partner companies were "paid incentives based on the same standard wages and rates."