Severe Labor Shortage in Chungcheongbuk-do Semiconductor Companies... Wages 22% Lower Than Seoul Metropolitan Area, Leading to 'Talent Outflow'

Behind the growing semiconductor industry lies a severe labor shortage facing regional manufacturing. Despite the semiconductor industry, a core of national exports, enjoying a boom, a paradoxical situation is occurring on the ground where companies are struggling to find people to work.

This video, presented by Korea Employment Information Service (feat. Work24), analyzes the reality and structural limitations of regional manufacturing jobs through the case of the semiconductor industry in Chungcheongbuk-do. As of 2020, manufacturing accounted for 27% of South Korea's Gross Domestic Product (GDP), showing a high dependence on manufacturing, nearly double the OECD average. However, the crisis in regional manufacturing is progressing quietly, overshadowed by the flashy performance news of large corporations.

Concentration in Large Corporations and Wage Gaps... Regional Companies Becoming 'Stepping Stones'

Chungcheongbuk-do is a key hub, ranking in the top three nationwide in both the number of semiconductor businesses and employees. However, the imbalance in the labor structure is severe. About 70% of employees are concentrated in large corporations with 300 or more employees, showing a very high dependence on large companies. On the other hand, small and medium-sized enterprises (SMEs) are experiencing severe labor shortages. As of 2023, approximately 60% of the 116 missing personnel were technical workers at a high school graduate level.

One of the biggest causes is the wage gap with the Seoul metropolitan area. The average per capita salary in Chungcheongbuk-do is approximately 64 million won, which is about 22% lower than in Gyeonggi Province. Because of this, a "stepping stone phenomenon" is repeating, where personnel who have gained 2 to 3 years of experience in the region leave for companies in the metropolitan area in search of better treatment. In fact, Company A, a specialist in semiconductor back-end processes met on the field, was struggling to secure manpower to the extent that they had to post operator recruitment notices almost all year round, and the average length of service was only 4.3 years.

Lack of infrastructure also encourages the departure of young people. In the case of Company B, located far from downtown Cheongju, despite the company providing a dormitory, young people are reluctant to move in due to the lack of surrounding amenities. The case of Company C, which has to operate a separate office in Gangnam, Seoul because it is difficult to find design personnel, clearly shows the limits of regional manpower supply and demand.

Limitations of Subsidy-Centered Support... 'Step-by-Step Package' Proposed

To solve these problems, the Chungcheongbuk-do Provincial Government is operating the 'North Chungcheong Semiconductor Industry Power-Up Jobs Project' by investing more than 4 billion won in national funds in 2025. The project's achievements are reflected in numbers. In 2023, it created 957 jobs, far exceeding the target of 500, and in 2024, it also showed a high achievement rate compared to the target. It is also positive that 85.6% of the beneficiaries of the Job Leap Subsidy are still employed.

However, structural limitations remain. It is pointed out that since 56.7% of the total budget is concentrated on short-term recruitment subsidies, it is insufficient to solve fundamental causes such as the low-wage problem or poor working environments. Young people on the ground unanimously agreed that while government subsidies help alleviate the wage gap, they are insufficient to solve structural problems such as the concentration in the metropolitan area or the lack of quality jobs within the region.

Experts propose a paradigm shift in the method of support. They suggest that instead of simply giving money at the time of recruitment, a 'step-by-step long-term service package' that provides differentiated benefits according to the period of service is needed. This would be a method where education expenses are supported in the first year of employment, skill-up certification in the second year, and regional settlement incentives in the third year.

Ultimately, the sustainability of regional manufacturing depends on 'people.' If industrial policy is the engine of a car, job projects must play the role of the transmission that delivers that power. The key task is for regional universities, companies, and local governments to cooperate to nurture talent and build an ecosystem where they can take root in the region.

Source: original video (YouTube)