Potential conflicts with subcontracted workers have emerged as a major risk for Korean shipbuilders, even as the companies are expected to continue posting solid earnings this year. The sense of crisis stems from growing political pressure on shipbuilders to treat subcontracted workers on equal footing with their directly hired employees. The forthcoming enforcement of the revised Trade Union and Labor Relations Adjustment Act, commonly known as the “yellow envelope law,” is also weighing on the industry, as it allows subcontracted workers to negotiate directly with the principal employer. After President Lee Jae Myung commended Hanwha Ocean last month for its decision to eliminate discrimination against subcontracted workers in bonus payments, other shipbuilders have faced increasing calls to follow suit. Hanwha Ocean said the ratio of subcontracted workers’ performance-based bonuses to their base pay will now match that of the company’s regular employees. In 2024, subcontracted workers received bonuses equal to 75 percent of their annual base salary, while directly employed st