Then-Justice Minister Han Dong-hoon, right, talks with migrant shipyard workers at HD Hyundai Heavy Industries' headquarters in Ulsan in this November 2023 photo. Newsis

Conflict is intensifying in the Korean shipbuilding industry following the government's recent decision to maintain an expanded quota for migrant laborers at shipyards.

As the government considers extending the temporary two-year policy that allows migrant laborers to make up 30 percent of the full-time domestic workforce at shipyards, Korean workers are demanding a rollback of the quota to the previous 20 percent.

However, the demand is drawing backlash from labor activists supporting migrant workers, as well as from shipbuilders who are likely to face an increasing need to hire more workers, particularly with the expectation of cooperation with the incoming U.S. government on the maintenance, repair, and overhaul (MRO) of naval vessels.

Earlier this week, the unions representing Korea's eight shipyards announced plans to hold a press conference on Wednesday to urge the government and shipbuilders to stop relying on migrant laborers. Criticizing the government's visa quota expansion, the unions called on management to prioritize improving labor conditions.

Their plan follows the 2025 economic policy directions announced last Thursday, in which the government said it will maintain the expanded visa quota as part of efforts to address a labor shortage in the shipbuilding industry.

The decision came after Prime Minister Han Duck-soo, who is currently suspended from his duties, told reporters last November that he will discuss with the justice ministry the issue of expanding the E-7 visa quota for shipyard workers, in response to a question about how the government intends to address U.S. President-elect Donald Trump's proposal for cooperation in the MRO of naval vessels.

Trump indicated his incoming administration's intent to strengthen partnerships with Korean shipbuilders during a phone call last November with President Yoon Suk Yeol, who is also currently suspended from his duties.

A member of the Korean Metal Workers' Union (KMWU), left, distributes newsletters about the union to migrant workers at HD Hyundai Samho's shipyard in Mokpo, South Jeolla Province, in this May 2023 photo. Courtesy of KMWU

In response, the unions of the eight shipyards collected signatures from over 5,000 workers throughout last month, urging the government to abandon the visa quota expansion plan.

"The government is trying to fill dangerous, low-paid and unstable job positions with migrant workers," the unions said in a statement.

They also expressed solidarity with migrant workers, urging the government to prioritize improving living conditions for foreign laborers.

However, the unions' move has been met with resistance.

Lim Jun-hyung, an activist at Workers' Solidarity, who has defended migrant laborers, described the unions' action as "short-sighted," arguing that restricting the visa quota could force foreign nationals to seek more dangerous and lower-paid jobs as undocumented immigrants.

According to the activist, one of the leaders of the HD Hyundai Heavy Industries' union opposed the campaign to collect signatures, claiming that it undermines solidarity between Korean and foreign workers.

"The campaign will make migrant workers feel excluded," Lim said.

Shipbuilders have supported the government's policy, anticipating that potential cooperation with the U.S. government in the MRO of naval vessels will increase demand for workers.

"In terms of efficiency, we can consider tasking migrant laborers with simple and repetitive work during the MRO of U.S. naval vessels," a shipbuilding industry insider said on condition of anonymity.

Another shipbuilding industry official stated that the expanded visa quota will allow subcontractors to be more flexible in hiring workers, given the soaring orders for ship construction.