The labour costs in ship and boat building in South Korea have seen a significant decline since 2013. Starting at 7.0081 trillion KRW, the costs fluctuated slightly until 2016 with notable dips in 2017 and 2018, dropping to 4.8318 and 4.5192 trillion KRW respectively. From 2019 onwards, the costs consistently decreased, reaching 3.8708 trillion KRW in 2023. The period between 2021 and 2023 shows a year-on-year variation between -4.21% and -4.31%, with a 5-year compound annual growth rate (CAGR) of -3.05% by 2023. The future forecast indicates a continued decline, predicting the labour costs to drop to 2.9602 trillion KRW by 2028, with a forecasted 5-year CAGR of -4.26%.
Future trends to watch for include:
- The impact of technological advancements and automation on labour costs.
- Global economic factors and how they influence demand for shipbuilding.
- Changes in labor laws and wage policies in South Korea.
- Investment in employee skills and training programs to enhance productivity.