Addressing aging construction workforce with field-training-focused programs

Specialized loans for construction workers to expand as more banks join in October

Trainees preparing for careers in the semiconductor industry learn about manufacturing processes at the semiconductor fab of the Korea Institute of Nanotechnology in Yuseong-gu, Daejeon, on Aug. 30. [Yonhap]
Trainees preparing for careers in the semiconductor industry learn about manufacturing processes at the semiconductor fab of the Korea Institute of Nanotechnology in Yuseong-gu, Daejeon, on Aug. 30. [Yonhap]

The government is moving to secure skilled workers needed to build semiconductor factories and data centers in mega special economic zones. As fewer young people enter the construction industry and the workforce ages, authorities plan to overhaul field-training-centered programs for technical workers while expanding financial access and welfare support for construction laborers.

Minister of Employment and Labor Kim Young-hoon held a field briefing Wednesday at the headquarters of the Construction Workers Mutual Aid Association in Jung-gu, Seoul, to review the progress of major policy tasks related to construction workers. The visit was arranged ahead of the association's 30th anniversary next year to discuss ways to improve employment and welfare conditions for construction workers.

Kim said the deepening aging of the construction workforce — driven by a decline in new entrants, particularly young people — risks creating a structural imbalance in labor supply and a shortage of skilled workers. He said the industry must proactively prepare for the demand for skilled labor that will come with the construction of semiconductor fabs and data centers in the mega special zones.

To that end, Kim called for improving working conditions in the construction sector and systematizing field-training-based programs to develop skilled technical workers. Jang Geon, chairman of the association, said the organization would review its existing training systems and establish a comprehensive workforce development framework to meet regional demand for skilled workers, including for large-scale construction projects in the mega special zones.

Expanding financial support for construction workers was also on the agenda. Kim referred to the inclusive finance MOU signed in July among BNK Financial Group, the association and the two major umbrella labor unions, urging them to pick up speed on bringing more banks into the program.

Busan Bank and Kyongnam Bank launched a specialized loan product exclusively for construction workers on July 31 under the agreement. The product assesses a borrower's work history and continuity through the number of days accumulated in the retirement mutual-aid fund, and uses income and credit information to determine loan limits and interest rates. The loan ceiling is 35 million won ($25,800), with a maximum interest rate in the 5 percent range.

The Ministry of Employment and Labor, the Financial Supervisory Service and the association plan to sign an MOU in October to bring additional banks into the inclusive finance program. A specialized loan product for construction workers operated by Hana Bank is also set to see its loan ceiling raised from 20 million won to 35 million won by year-end, with a lower interest rate as well.

Wednesday's briefing also reviewed welfare programs funded by additional revenue collected following an increase in the daily retirement mutual-aid contribution rate in April. Topics included improvements to rest facilities at construction sites, vacation support for workers, field-training support for vulnerable groups in residential settings, and childbirth allowances.

"Please focus all your efforts on laying the foundation for young people to see construction sites as a place of opportunity and growth — a place where they can develop into skilled professionals," Kim said.


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