No Labor forces, Sorry for Orders

Koh Hyung-rae(41), the president of a small sized company ESE (Gajua-dong, Se-gu, Inchon) manufacturing semiconductor equipments has gone to China to the matters concerned taxation for Shanghai manufactory that will begin from the end of this year.

The company has suffered from the shortage of 10 persons labor force for last two years, so it couldn’t meet the order.

Mr. Koh used all sources to employ labor force but failed such as advertising on living information papers, registration to employment center of the Ministry of Labor, etc.

▽ Facts= the secondary industry that has supported Korea economy suffers from the shortage of labor forces seriously, so many of them tries to transfer the facilities to China.

Kyungjin Blower manufacturing ventilators is operating at 60% of its capacity because after 10 Sri Lankan apprentices have gone back home it could not recruit skilled persons for press. The company applied quota for additional labor forces, but hasn’t received any response from the Ministry of Labor for two months time. So in the early of June this year, it only exported 15,000 dollars of products to Indonesia, even if received order of 35,00 dollars with advanced payments. Now the company opened an office in Beijing of China that has already launched market research for transferring manufacturing facilities to Qingdao Economic Special Zone.

According to a reliable source, many manufacturers in Namdong Industrial Site employ senior citizens and married women.

Some companies pay rebates to the persons who bring labor forces with thme from other companies.

Recently, Kyungin branch of the Korea Industrial Complex Corp. surveyed for 316 companies that employ more than 10 persons, and reported that all companies suffer from the shortage of 10% of key labor forces.

Xaonin near Qindao a costal industrial site induced 30 Korean manufacturers. Xaonin opens its office in front of Inchon City Hall two month ago to induce Korean manufacturers suffering from the shortage of labor forces.

▽ Prospect and solution= Yun Hyung Sup (49, manufacturing manager of Dong –a Pharmacy), the Chairman of Korean Business Association in Shandong says, “Two advantages; the save cost and the solution of labor forces, attract Korean small and medium sized manufacturers to Shandong.”

According to the Inchon Commerce and Industry Chamber, 70 of 3,600 manufacturers (including less ten employees manufacturers) operate manufacturing facilities in the form of joint venture or sole investor. 30 of the 70 manufacturers began the operation since May of the last year. The chamber estimates that more than 200 manufacturers in Inchon area will secure manufacturing base in China within 3 years. Panwol and Shiwha Industrial Sites are under the same situation. About 2,000 manufacturers from the whole of the country have secured manufacturing base in China since 2000. So many persons are anxious for industrial evacuation like Taiwan in near future. According to a recent research performed by Korea Commerce & Industry Chamber on 220 manufacturers in Seoul Metropolitan area, 80% of them replied that they have already transferred the facilities or will do soon. It reflects serious situation of Korean manufacturing industry.

For the matter some persons say that the government should establish a policy to improve working conditions for manufacturers.

Min Tae-hoon(42) International Relation of Inchon Commerce and Industry Chamber says “ unemployment policy a policy for transferring company is important, but the more important is a policy to employee’s welfare and the improvement of working condition.”

run-juno@donga.com