Korea’s shipbuilding hubs divided over surge in migrant workers

A group of residents in Ulsan's Dong District hold a press conference at Ulsan City Hall, Nov. 24, to protest the city government's plan to bring in more migrant shipyard workers. Courtesy of residents' group

Cities home to Korea’s largest shipyards are seeing rising internal conflicts over the rising number of migrant workers.

Although shipbuilders continue to cite severe labor shortages amid a surge in orders, local residents and labor unions say companies should pay more to attract Koreans and criticize the limited local spending by foreign workers.

Geoje Mayor Byun Gwang-yong of South Gyeongsang Province asked Labor Minister Kim Young-hoon on Nov. 24 to reduce the visa quota for migrant workers, as the number of foreign residents on the island surpassed 15,000 as of October — more than triple the figure five years ago. Geoje is home to Hanwha Ocean and Samsung Heavy Industries.

“The increase in foreign workers has not led to their integration or spending in the local economy,” Byun said. “By gradually reducing the visa quota, we aim to establish a stable labor structure centered on skilled Korean workers.”

Elected in April as a candidate of the ruling Democratic Party of Korea, Byun has prioritized reducing the city’s reliance on migrant labor, while backing unionized Korean shipyard workers. He emphasized that adjusting visa quotas is essential to achieving mutually beneficial growth for both shipbuilders and the regional economy.

Geoje Mayor Byun Gwang-yong, left, poses with Labor Minister Kim Young-hoon in Seoul, Nov. 24, after asking the central government to reduce the visa quota for migrant shipyard workers. Courtesy of Geoje city government

A similar debate is unfolding in Ulsan, home to HD Hyundai Heavy Industries.

On Nov. 24, residents and Korean workers held a press conference to oppose Ulsan Mayor Kim Doo-gyeom’s plan to expand the special visa quota to secure migrant workers for the city’s shipyards.

Under the main opposition People Power Party mayor’s initiative, up to 440 workers from Uzbekistan, Thailand, Vietnam and Indonesia are expected to be dispatched to Ulsan’s shipyards by the end of next year. The city government said these skilled workers will help stabilize the labor supply and boost the industry's competitiveness.

“Relying too heavily on migrant labor will eventually erode our shipbuilding skills and competitiveness,” a group of Ulsan residents said. “The influx of short-term foreign workers is leaving buildings vacant and weakening the local economy.”

Ulsan's Dong District Mayor Kim Jong-hoon, a member of the minor progressive Jinbo Party, also expressed concerns.

“Residents tell me our neighborhood now feels like Southeast Asia,” Kim said. “Can we just dismiss their anxiety as baseless?”

After facing criticism that his remarks were xenophobic, Kim and his party issued an apology but maintained their opposition to increasing the number of migrant workers.

Amid these disputes, the Ulsan city government announced that the number of Korean residents began to rise in October for the first time in 96 months. Citing the rebound, city officials dismissed concerns over declining local consumption.