Hanwha Ocean said on 12 December that it has decided to pay performance bonuses to partner-company employees at the same rate as its directly employed staff.

The company said the partner company’s bonus level, which had been set at roughly half of the main contractor’s rate, will be raised to match the rate applied to direct employees. The change will apply to about 15,000 partner-company workers.

For 2024, Hanwha Ocean said its direct employees received performance bonuses equal to 150% of base salary, while partner-company employees received about 75%. Under the decision announced on 12 December, partner-company employees will receive performance bonuses at the same rate as direct employees, narrowing the compensation gap between the main contractor and subcontractors.

A company representative said business results will be shared equally between the main contractor and subcontractors “without discrimination,” and described the move as a new model for mutual growth in shipbuilding. Internally, Hanwha Ocean said it expects that a structure in which direct and partner-company employees share results will support more stable process management and improved productivity.

The company also pointed to industry concerns that lower performance bonuses at partner companies have made it difficult to secure skilled domestic workers. Because performance bonuses are calculated based on base salary, longer-tenured employees benefit more, which the company said helps retain skilled personnel. A company representative added that compensation issues have led skilled domestic workers to leave the industry, with positions being filled by foreign workers, and said higher performance bonuses could increase domestic preference for jobs at partner companies.

Foreign workers at partner companies of major shipyards were reported to account for 20–30% of the workforce, exceeding 10,000 people. Against ongoing labor shortages, Hanwha Ocean has introduced measures aimed at reducing gaps between the main contractor and subcontractors. In October, the company withdrew a 47 billion won damages lawsuit against a subcontractor union that staged a dock occupation strike in 2022. In June, it also negotiated with partner-company representatives after demands to resolve the bonus gap were raised during a high-altitude protest.

Earlier this year, Hanwha Ocean said it would share business results with partner companies. In an April company newsletter, it said it would expand resources to support partner companies, make tangible improvements in working conditions, and share business results for mutual growth between the main contractor and subcontractors.