A. Employment Status of Migrant Workers in Shipbuilding

In 2025, the percentage of foreign workers on South Korean shipyard floors continues to grow. Foreign workers, who were brought in to address the labor shortage in the shipbuilding industry, numbered about 20,000 in 2024, accounting for about 16% of all shipbuilding workers.

Migrant workers employed in Korea’s shipbuilding industry hold a range of residency statuses, including D-3 (Industrial Training), E-9 (Non-Professional), E-7 (Special Ability), H-2 (Work and Visit), F-4 (Overseas Koreans), and F-5 (Permanent Resident). Among these, the vast majority—approximately 23,000 workers—hold E-9 (Non-Professional) or E-7-3 (General Workers) visas. When accounting for other visa types and undocumented workers, the total number is considerably higher.

Current Status of Migrant Workers in Korea's Shipbuilding Industry (as of April 2025)

Source: 'Status of E-9 Migrant Workers in Shipbuilding Industry', Data submitted by Ministry of Employment and Labor (Provided by Rep. Lee Yong-woo's Office), 'Status of E-7-3 Migrant Workers in Shipbuilding Industry', Data submitted by Ministry of Justice (Provided by Rep. Han Chang-min's Office)

Proportion of Migrant Workers in Korea's Shipbuilding Industry (2007–2023) 

Korea Shipbuilding & Offshore Engineering Association (2024), “Shipbuilding Data Collection 2024,” Kim Woo-sik et al. (2024), 

“Current Status and Challenges of Labor Unions’ Responses to Migrant Labor,”

Korean Metal Workers’ Union Labor Research Institute, p. 71, reprinted from

Shipbuilders are using foreign workers as a cost-saving measure, and in the process, labor exploitation and discrimination have become a serious issue. Low wages, poor working conditions, and lack of safety leave foreign workers in a more vulnerable position, and improvements are urgently needed.

B. Problems with Foreign Labor Policy in Shipbuilding

International organizations have repeatedly urged Korea to address problems such as overly complex visa systems, discrimination by nationality, and restrictions on workplace mobility. Nonetheless, the Korean government continues to impose legal and institutional constraints that severely limit migrant workers’ labor and human rights. These have resulted in widespread workplace violations including discrimination, exploitation, and harassment.

The Employment Permit System (E-9) remains the principal scheme for recruiting migrant labor. It restricts workplace transfers and regional mobility while imposing strict residency limits. Workers under the system earn low wages and face discriminatory treatment, even as they acquire valuable skills and experience. Because of their dependent and precarious status, they are often unable to assert their rights or resist exploitation.

Since 2024, the number of E-7 workers has surged in shipbuilding hubs such as Geoje (Hanwha Ocean, Samsung Heavy Industries) and Ulsan (HD Hyundai Heavy Industries, HD Hyundai Mipo). Despite the government’s stated aim of promoting long-term employment of skilled workers, most E-7-3 visa holders typically enter Korea under short-term contracts— often as brief as six months to one year. 

Legally, workers whose contracts are not renewed may apply for a D-10 (job-seeking) visa and change employers. In practice, however, transferring workplaces is extremely difficult.  As a result, many workers are forced to return home burdened with debt or fall into undocumented status. Moreover, because the E-7-3 visa limits employment to designated occupations (e.g., welding in shipbuilding), workers must secure their employer’s written consent and government approval to transfer. This structure effectively denies freedom of employment mobility and fosters dependency reminiscent of bonded labor.

In 2024, the government launched the “Regional Wide-area Visa” pilot project, claiming it would align immigration policy with local labor demands. Such immigration policies—expanding under various names—ultimately serve as instruments of labor flexibilization, enabling capital to secure a cheap and disposable labor force. These short-term migration schemes deepen the multi-tiered, low-wage subcontracting system that defines the Korean shipbuilding industry.

C. Human Rights Violations

(1) Exploitation by Private Recruitment Agency Brokers

Migrant workers often suffer serious harm during the recruitment process, including fraud and exploitation by private labor brokers. Prior to arrival, they are coerced into paying exorbitant recruitment fees—covering documentation, visa processing, travel expenses, and airfare—to private dispatch agencies. In addition, these agencies frequently require workers to sign anti-defection pledges and high-penalty liability agreements (including joint surety obligations and bans on taking photos). Such debt bondage amounts to a form of coercion and leads to conditions akin to forced labor.

(2) Poor Working Conditions

Wage exploitation is widespread. Migrant workers sign pre-entry contracts specifying 80% of GNI wages, but are compelled to sign new minimum-wage contracts upon arrival. Companies use deceptive tactics including deducting "living expenses" and enforcing dual contracts under threats of deportation. Workers are often unable to freely change workplaces, forcing them to endure abusive conditions—raising complaints risks contract non-renewal and deportation. High-intensity labor is routinely imposed, with unrealistic productivity targets and dangerous tasks in hazardous environments. Wage arrears and unfair dismissals are frequent, with employers disguising terminations as "voluntary resignations."

(3) Industrial Accidents and Health Risks

Shipbuilding is widely recognized as a high-risk and hazardous industry. Particularly, the multi-tier subcontracting system contributes directly to recurring fatalities and injuries. According to Korea Workers’ Compensation & Welfare Service (2024) data, there were 161 work-related accidents and 17 occupational illnesses among migrant shipyard workers across 160 companies, resulting in a total of 178 industrial accident cases, including 3 fatalities. These figures only reflect cases officially recognized as industrial accidents by KCOMWEL. Considering the reality that many migrant workers are unable to even request compensation for work-related injuries, these numbers likely represent only the tip of the iceberg.

Statistics show that the occupational disease compensation approval rate for migrant workers is significantly lower than that of the general workforce in Korea. Claims are often denied on procedural or technical grounds—most commonly on the assertion that the worker’s “exposure period to risk was too short.”  Many workers simply abandon their claims because of the language barrier, financial strain, or fear of employer retaliation.

2024 Shipyard Migrant Worker Industrial Accident Status

Source: 2024 Shipyard Migrant Worker Industrial Accident Status (Data submitted by the Korea 

Workers' Compensation & Welfare Service *Provided by Representative Lee Yong-woo's Office) 

Communication difficulties increase danger—at HD Hyundai Heavy Industries, over 4,000 workers from 40 countries have only about ten interpreters, forcing reliance on gestures and translation apps in hazardous situations.

(4) Discrimination and Unfair Treatment

Discrimination against migrant workers is pervasive in shipyards. Even after obtaining certifications and accumulating experience, wages remain at minimum wage levels, and workers are excluded from pay increases and performance bonuses. Discriminatory practices also occur where meal costs, which are provided free to Korean workers, are deducted only from migrant workers' wages. Furthermore, workers suffer serious distress from verbal abuse and harassment. Migrant workers have also sustained severe injuries, including spinal fractures, during frequent raids by immigration authorities.