In July 2026, subcontracted workers were killed in successive crushing accidents at HD Hyundai Heavy Industries’ Ulsan and Gunsan shipyards. Saying that two fatal accidents had occurred within the previous week, the Ministry of Employment and Labor began a high-intensity inspection equivalent to a special inspection on August 18.
Key Developments
The Ministry of Employment and Labor’s inspection team was formed to cover the Ulsan and Gunsan shipyards, headquarters, and high-risk workplaces in 2026. A total of 62 people, including inspectors and employees of the Korea Occupational Safety and Health Agency, are participating.
The accidents occurred at separate worksites.
- On July 18, a Uzbek subcontracted worker in his 20s was caught between a gondola and an overhead structure at the Ulsan shipyard and died.
- On July 24, at the Gunsan shipyard, a subcontracted worker in his 30s died after his head became trapped between a steel structure and a vehicle while working with a lug-fitting machine.
The final causes of both accidents and the parties legally responsible have not yet been determined.
Current Status
Following the Ulsan accident, the Ministry of Employment and Labor ordered a partial suspension of gondola operations on certain shipbuilding lines. HD Hyundai Heavy Industries said it would inspect approximately 300 gondolas across the company.
The company disclosed that it would halt production at all its plants from July 29 to August 1 and conduct special safety training and safety inspections across all workplaces. A Korea Exchange KIND disclosure recorded that the partial work stoppage related to the Ulsan gondolas and the partial stoppage of the entire assembly line at the Gunsan shipyard’s panel plant were excluded from the scheduled production resumption.
Regarding the Gunsan accident, the Jeonbuk Provincial Police Agency said it was investigating whether the parties involved—including HD Hyundai Heavy Industries as well as the relevant subcontractor—bore responsibility for the accident.
Impact
This matter involves several concurrent industrial-safety developments: the confirmed accidents, work stoppages and safety inspections, a government inspection, and a police investigation. However, the available information does not support conclusively identifying the direct cause of the accidents or the legal responsibility of any specific party.
A separate variable has also emerged in labor-management relations. On August 27, the HD Hyundai Heavy Industries labor union secured the right to strike after 66.19% of eligible members voted in favor in a wage and collective-agreement strike referendum. This does not mean that a strike has begun; reports said that whether and when to strike would be discussed separately.
HD Hyundai Heavy Industries’ cumulative order value from January through July 2026 was reported at $15.973 billion, while revenue during the same period was reported at KRW 14.2887 trillion. These figures provide background on the shipbuilding industry and the company’s performance, but they cannot be treated as evidence of the causes of the accidents or the state of safety management.
What to Watch Next
Three points will be important to monitor:
- The results of the Ministry of Employment and Labor’s high-intensity inspection and any follow-up measures
- The progress of the police investigation into the Gunsan accident and any determination of responsibility
- Whether the union actually goes on strike and, if so, the schedule
The currently available information does not say that the inspection results or the final causes and legal responsibility for the accidents have been determined. Accordingly, this issue should be assessed by distinguishing confirmed accidents and measures from ongoing investigations and labor-management discussions.
Sources and verification date: Materials from the Ministry of Employment and Labor, Korea Exchange KIND, Yonhap News Agency, and Newsis reviewed on August 31, 2026.
- https://www.moel.go.kr/news/enews/report/enewsView.do?news_seq=19792
- https://www.yna.co.kr/view/AKR20260721057400057
- https://www.yna.co.kr/amp/view/AKR20260804082100055
- https://kind.krx.co.kr/external/2026/07/27/000373/20260727000333/61241.htm
- https://www.yna.co.kr/view/AKR20260827190800057
- https://mobile.newsis.com/view/NISX20260828_0003766819