SHORTAGE OF WORKERS IN SHIPBUILDING

[Anchor Lead]

South Korea has reclaimed the top spot in the global shipbuilding market after four years. Despite the business boom, domestic shipbuilders are plagued by a shortage of workers. Some of them are even forced to give up on orders they won.

[Pkg]

This is an LNG carrier. It's a ship designed for transporting liquefied natural gas at the ultra low temperature of minus 163 degrees Celsius. It is a high value-added vessel that requires advanced manufacturing technologies. In the first half of this year, local shipbuilders won over 70 percent of international orders for LNG carriers. This boosted South Korea back to the top spot in the global shipbuilding market for the first time in four years. However, shipbuilders' contractors cannot welcome the business boom. It is due to a shortage of labor. Some of them have to give up and return part of their orders to shipbuilders.

[Soundbite] Yoo In-sook(Shipbuilder's contractor) : "We can only produce half the shares we promised. We have to return the rest of the orders due to labor shortage."

The number of manufacturing workers in the domestic shipbuilding industry has declined over 60 percent compared to seven years ago. That's because many workers left the industry during the 2016 slump and didn't come back. Another reason is stagnant wages.

[Soundbite] Oh Se-il(Shipbuilding worker) : "Minimum wages are continuing to rise. But our pay remains nearly unchanged. Unhappy with the low salaries, many workers have left for better jobs."

There are calls for creating an environment that can attract competent workers to the industry.

[Soundbite] Lee Eun-chang(Korea Institute for Industrial Economics & Trade) : "It seems necessary to improve public sentiment toward the shipbuilding industry. It will be helpful if regular positions are expanded and job stability is boosted."

As part of efforts to help shipbuilders bring in workers, the government eased the limit on hiring foreign painters and welders in April. It is also reviewing opening more courses on naval architecture and engineering at colleges.