Ulsan, Busan and Gyeongnam Merge Labor Markets in 12.5 Billion Won Plan

Three Regions Respond to Labor Shortages as a Single Mega-Region Transport and Relocation Subsidies Aim to Stem Youth Outflow Goals Include Job Creation and Local Talent Development

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By Jang Ji-seungjjs@sedaily.com
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Job seekers line up to enter the Busan-Ulsan-Gyeongnam Regional Job Fair held at BEXCO Exhibition Center 2 in Busan's Haeundae district. Yonhap News - Seoul Economic Daily Society News from South Korea
Job seekers line up to enter the Busan-Ulsan-Gyeongnam Regional Job Fair held at BEXCO Exhibition Center 2 in Busan's Haeundae district. Yonhap News

ULSAN — Ulsan, Busan and Gyeongsangnam Province are moving to build a single labor market across their administrative borders. The three regions plan to jointly support everything from commuting costs for workers traveling between them to relocation for young people who move from elsewhere to take jobs in the area, addressing corporate labor shortages and youth outflow on a mega-regional scale.

According to the Ulsan Metropolitan Government on the 17th, Ulsan, Busan and Gyeongsangnam Province will carry out the "Mega-Region Link Project" together with the Ministry of Employment and Labor. Selected through a ministry competition, the project will receive a total of 12.5 billion won ($9 million), including 10 billion won in central government funding and 2.5 billion won from local budgets. Ulsan's share is 4.16 billion won, while Busan and Gyeongsangnam Province each account for 4.17 billion won. The project targets 536 new jobs, relocation support for 400 people, residential support for 1,350 people and training for 165 workers.

The project consists of three main programs — Talent Link, Settlement Link and Future Link — comprising seven detailed tasks. Talent Link aims to draw skilled workers from the Seoul metropolitan area and the Chungcheong region to the three southeastern regions. Through a "Welcome Youth Integrated Support Package," young people who relocate will receive up to 20 million won in settlement costs, including monthly rent, along with matched savings of up to 40 million won over 24 months. The program is expected to create 100 jobs.

Settlement Link focuses on living conditions so that workers who find jobs in the region can stay. The Ulsan Chamber of Commerce and Industry will provide 1,350 workers who commute across city and provincial borders with up to 1.8 million won in transport subsidies over six months, plus 500,000 won in local currency vouchers. Gyeongsangnam Province will support matched savings of up to 20 million won over 24 months for young workers, while Busan will operate mega-regional employment services such as mobile job-placement buses.

Future Link supports industrial cooperation among the three regions and the training of manufacturing talent. Under a "3T Cooperation Partnership" that backs joint corporate research and market development, companies will receive 15 million won per new hire, up to 45 million won per company. The program will also train 165 core workers through manufacturing AI transformation (AX) education and on-site training. The Busan Human Resources Development Council will build integrated governance linking the three regions' programs.

The significance of the project lies in expanding the scope of job policy, previously divided by administrative district, across all three regions. Workers will receive support for relocation and settlement so they can take jobs in neighboring areas regardless of where they live, while companies will be able to draw on talent from all three regions. Over the longer term, the plan envisions a single labor and living zone in which employment, commuting and settlement take place across city and provincial borders.

"The Mega-Region Link Project is a new cooperation model that connects the industries and talent of Busan, Ulsan and Gyeongnam into a single zone to strengthen job competitiveness," an Ulsan city official said. "We will create a mega-regional ecosystem in which jobs and settlement reinforce each other, providing companies with skilled talent and job seekers with wider employment opportunities."

Original reporting by Jang Ji-seung for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

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