The Korean government is also raising the voices of criticism as it is putting measures to increase the jobs in the shipping industry. It is pointed out that the Korean shipbuilding industry is not competitive even if the market improves in the near future by repeating short-term support measures rather than market autonomous restructuring. Some are accusing the government of having put forward a policy of envy again ahead of local elections in June.

The government hired 3,000 young people annually on April 5, based on support from the 15th Ministerial Meeting on Strengthening Industrial Competitiveness, held by Kim Dong-yeon, Deputy Prime Minister of Economy Kim Dong-yeon, revealed the development strategy of shipbuilding industry.

Meanwhile, the government said that it will consider the sale of Daewoo Shipbuilding & Marine Engineering, which is the largest shareholder of the Korea Development Bank, mid to long term. He added that he will push forward the regeneration process of Sungdong Shipbuilding and the restructuring of STX Offshore & Shipbuilding, and foster a mid-sized shipbuilder with competitiveness in line with the autonomy of the industry. In addition, the Ministry of Defense, the Ministry of Maritime Affairs and Fisheries and the Korea Customs Service have decided to order public vessels at least 40 ships and 5.5 trillion won by next year. According to the five-year reconstruction plan for shipping reconstruction, by 2020, about 8 trillion won will be secured for shipbuilding industry by supporting more than 200 domestic private ship orders. The company also plans to place orders for one or two liquefied natural gas (LNG) fuels annually.

The Korean government plans to hire 3000 new recruits annually in the shipbuilding industry by 2022 based on the development of design and production technologies specialized in small and medium-sized shipbuilding companies, self-development and eco-friendly ship development, operation of shipbuilding, I will. A government official said, "While the global shipbuilding market is recovering gradually, oversupply continues until 2022. Therefore, it is a policy to bridge the gap with appropriate restructuring and improved order competitiveness."

However, the industry is responding that it cannot understand how to increase employment through restructuring of the shipbuilding industry. In particular, criticism is also emerging that the government is already taking a lukewarm attitude toward the sale of Daewoo Shipbuilding, which has already injected 20 trillion won. An official of the shipbuilding industry said, "We understand that Daewoo Shipbuilding is difficult to find right now, but we will see if we can keep our promise to make it small and solid instead." The plan to create quality jobs is a contradiction. "

Another source in the shipbuilding industry stated, "I understand the policy goal, but I doubt it will work. I am afraid that I will give my conscientious pledge to the local people and try to hire the company."

Job growth is not easy given the slow recovery of the shipbuilding market. According to the Ministry of Commerce, Industry and Energy, domestic shipbuilders` orders amounted to 6.4 million CGT (standard cargo ships converted tonnage) last year, which is less than half of the average installed capacity of 13.5 million CGT from 2011 to 2015. The Ministry of Industry also predicted that it would recover to its previous level only in 2022, but suggested an ambiguous policy direction that "we need to do our best to prepare for a market recovery with additional restructuring."

It is pointed out that the public order for KRW 5.5 trillion of public shipbuilding for the next two years is `peeing in the wind` to save the shipbuilding industry. As of end-2016, domestic shipbuilders accounted for KRW 48.83 trillion in sales. As of the end of last year, domestic shipbuilders accounted for only 19.1% of global shipbuilders.

By Park Jung Il comja77@


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