Busan is good

Busan Metropolitan City Launches Nation’s First Collaborative Model with Seven Regional Anchor Companies to Bridge Shipbuilding Industry Gaps and Build a Shared Growth Ecosystem

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Busan Metropolitan City (Mayor Park Heong-joon) announced that it will launch the “2026 Busan Shipbuilding Industry Regional Coexistence Gap Reduction Support Project (Shipbuilding Industry Busan-eXchange Coexistence Support)” in full scale to alleviate chronic wage and welfare disparities between prime contractors and subcontractors in the shipbuilding industry and to establish a sustainable industrial ecosystem.

This project was selected under the Ministry of Employment and Labor’s “Regional Coexistence Workplace Creation Project” and will be implemented with a total budget of KRW 2.78 billion, including KRW 1.9 billion in national funding, along with city funds and corporate matching contributions.

Unlike other local governments centered on large shipyards, Busan reflects its industrial structure, where mid-sized shipyards and equipment manufacturers are concentrated, by promoting a differentiated coexistence model that strengthens the industry’s mid-tier.

The initiative aims to reduce practical disparities between prime contractors and subcontractors and strengthen cooperation through a “public-private collaborative coexistence model” in which seven anchor companies directly contribute funds for the first time nationwide.

All seven regional anchor companies—HJ Shipbuilding & Construction, SB Sunbo Co., Ltd., Oriental Precision & Engineering Co., Ltd., Daeyang Electric Co., Ltd., KTE Co., Ltd., Panasia Co., Ltd., and DongHwa Entec Co., Ltd.—will participate by contributing a total of KRW 400 million in matching funds to improve the welfare and safety of workers at subcontracting companies.

Through this approach, the project moves beyond the conventional government-centered financial support model by enabling prime contractors to directly invest in the welfare and safety of subcontractor workers, thereby realizing a truly “regional coexistence workplace.”

The project consists of five detailed programs tailored to on-site needs.

The programs include: initial settlement “3+3” support (providing up to KRW 2 million in settlement incentives to new employees at the 3- and 6-month marks), skilled workforce retention and technology transfer incentives (up to KRW 2 million for long-term employees with over seven years of service), safety upgrades (up to KRW 3.5 million for safety, health, and high-risk equipment support), improvements to “Clean Work & Healing Centers” (up to KRW 25 million for essential items to improve shared facility environments), and all-in-one welfare support (including vacation allowances, comprehensive health checkups, and workwear laundry services).

In addition, to ensure the sustainability of the project, a coexistence consultative body will be formed and operated with participation from the city, the Ministry of Employment and Labor, prime contractors and subcontractors, and experts.

The consultative body will serve as a central axis of public-private governance by overseeing the conclusion and implementation of coexistence agreements, setting project directions, and managing performance, while continuously identifying and implementing tasks to reduce disparities in wages, working conditions, and welfare through ongoing discussions and on-site communication linked with working-level consultative groups.

Through this, the city plans to establish a sustainable Busan-style coexistence agreement model that integrates support across employment, environment, and welfare sectors.

Applications for participating companies and individuals will open today (the 1st).

Detailed information, including eligibility and application periods, can be found in the recruitment announcement posted on the Busan Chamber of Commerce and Industry website (www.bcci.or.kr), or by contacting the Busan Chamber of Commerce and Industry at 051-990-7132.

Mayor Park Heong-joon stated, “As the shipbuilding industry enters a supercycle, resolving the gap between prime contractors and subcontractors is an essential task to strengthen industrial competitiveness,” adding, “We will build a shared growth ecosystem where prime contractors and partner companies grow together and firmly establish the foundation for the shipbuilding industry’s leap forward.”