Comparative Analysis of Sustainable Seafarers’ Employment and Welfare Systems in South Korea and China: Contemporary Issues and Improvements

Abstract

Seafarers are recognized as essential workers responsible for maintaining the national logistics supply chain. This study analyzes the sustainable seafarers’ employment and welfare systems in South Korea and China using the comparative case study approach and presents relevant implications. In the era of the “New Normal” after the coronavirus disease 2019 pandemic, which is marked by hyper-personalization, seafarers have become increasingly resistant to acquiring maritime education and performing onboard duties. Even though South Korea has recognized seafarers as key agents of national economic growth, the participation of the new generation in the shipping industry has recently been declining. Meanwhile, China has been developing its shipping industry since the Deng Xiaoping reforms and fosters skilled seafarers by providing rigorous maritime education. However, both countries have been experiencing difficulties in ensuring the legal and social protection of seafarers; hence, the challenge of providing sustainable employment and welfare to seafarers remains. In conclusion, this study proposes the establishment of the “Asia Maritime Education, Employment, and Welfare Support Center” to support seafarers’ employment and welfare with the cooperation of other countries in the Asian region.

1. Introduction

The shipping industry consists of three elements: capital, vessels, and seafarers. Among these, seafarers are the human element, and they fulfill important roles that cannot be easily replaced or supplied by others [1]. Seafarers spend long periods aboard vessels and labor under harsh working conditions. Their occupation requires them to live in an enclosed and isolated environment and spend most of their time on vessels away from land and their homes. To solve these issues, some shipping companies consider the nature of seafarers’ profession and ensure that skilled seafarers can continue to work on board vessels by providing employment stability and offering systematic welfare systems. However, worldwide, seafarers have not received adequate recognition and respect for the value their profession brings to society and have not been assured of sufficient welfare benefits at the national level [1].

According to the Baltic International Maritime Council’s (BIMCO) Seafarer Workforce Report: The Global Supply and Demand for Seafarers in 2021, there was a shortage of approximately 26,240 seafarers in 2021. As countries’ shipping markets and vessel fleets continue to expand, it is projected that the supply of seafarers must increase by approximately 2% each year until 2026 [2]. To address the seafarer shortage issue, global shipping companies are making efforts to secure high-quality, skilled seafarers while promoting the development of their countries’ shipping industries. In addition, the International Maritime Organization (IMO) and the International Transport Workers’ Federation (ITF) have established the legal and institutional framework to promote the sustainable employment of seafarers and create welfare systems through the Standards of Training, Certification, and Watchkeeping for Seafarers (STCW) Convention and the Maritime Labour Convention (MLC) 2006, as well as amendments to International Labour Organization guidelines (ILO) [3]. In particular, both South Korea and China have faced difficulties in providing sustainable employment and welfare to seafarers in the era of the “New Normal”, which is characterized by hyper-personalization, following the coronavirus disease 2019 (COVID-19) pandemic.

South Korea has designated seafarers with roles and responsibilities as important human resources playing a role in the nation’s mid- to long-term industrial development. For example, during the economic growth period from the 1960s to the 1980s, the remittances sent by seafarers working abroad played a significant role in foreign currency acquisition at the national level. However, since 2020, MZ-generation (a term encompassing both the Millennial generation and Generation Z) seafarers have increasingly been avoiding maritime education or been unwilling to take on onboard duties [4]. A country’s failure to provide sustainable employment and sufficient welfare for seafarers can lead to the collapse of its maritime industry due to a shortage of skilled professionals in shipbuilding, shipping, and ports and have a negative impact on national strategies. The Ministry of Oceans and Fisheries of South Korea formulates and implements a master plan for seafarer policies every five years in accordance with Article 107 of the Seafarers Act. Moreover, the Korea Seafarer’s Welfare and Employment Center (KSWEC) was established to promote the sustainable and stable employment of seafarers and enhance their welfare [5]. However, in reality, seafarers are not sufficiently aware of the different employment and welfare benefits provided at the national level.

China developed its shipping industry based on the high economic growth rates that were achieved following Deng Xiaoping’s reform in 1978 to open up China’s economy. In addition, major ports in China, including Shanghai Port, have become top container ports in the world. Moreover, institutions such as Dalian Maritime University (DMU) and Shanghai Maritime University (SMU) supply skilled seafarers needed by domestic shipping companies by providing education and training similar to that of the military for students majoring in maritime studies [6]. Moreover, China has enhanced the competitiveness of its shipping companies and strengthened its support for the seafaring profession at the national level through its “One Belt, One Road” policy. However, the country’s separate legal frameworks ensuring the legal and social status of seafarers remain inadequate, which limits the provision of sustainable employment and welfare to seafarers [7].

Against this backdrop, this study analyzes the similarities and differences in seafarers’ employment and welfare systems between South Korea and China using the comparative case methodology. Further, it identifies the problems in building sustainable seafarers’ employment and welfare systems that enable countries in Asia to grow together and explores ways to address these problems. In this manner, this study analyzes the legal and institutional basis and cases centered on South Korea and China required to change the social perception of the seafaring profession. Furthermore, it proposes an initiative to establish the Asia Maritime Education, Employment, and Welfare Support Center that can help secure the sustained fostering of seafarers with the cooperation of other countries in the Asian region, thereby providing key implications. Ultimately, this study aims to lay the foundation to achieve job satisfaction and employment stability in the seafaring profession by enhancing practical and sustainable employment and welfare systems for seafarers, considering the distinct characteristics of maritime labor. This can be achieved by establishing an initiative led by South Korea and China in cooperation with other countries in the Asian region.

2. Literature Review

This study utilized Web of Science and Google Scholar to search Science Citation Index-level papers to analyze various earlier studies supporting strategies promoting the success and welfare of seafarers in the future. It also contains Korea Citation Index-level journals in South Korea. The search focused on the keywords “sustainable employment” and “welfare of seafarers” in South Korea and China over the 11-year period 2014–2024, as outlined in the literature review section.

First, we examined research papers related to the employment and welfare of seafarers in South Korea. Kim et al. (2018) opined that shipping companies and the government should operate mental and physical health coordinator systems and health promotion programs to address the disharmony among organizational culture, work, and health for South Korean seafarers [8]. Youn et al. (2020) underscored the need for comprehensive efforts to improve watchkeeping duty hours, meals, sleeping conditions, and working conditions to enhance the welfare of seafarers aboard South Korean vessels [9]. They emphasized the importance of such improvements in creating a sustainable onboard environment [9]. According to Lee et al. (2021), apprentice seafarers in South Korea are often subjected to poor working conditions, unlike their regular seafaring counterparts [10]. They emphasized that the government and shipping industry should make institutional efforts to establish specific standards and improve the onboard working environment. Further, according to Lee et al. (2020), although the continuous supply of skilled seafarers is important for the development of the shipping industry, the number of seafarers is declining due to issues related to onboard work-life balance, contractual employment, high workload, stress, insufficient vacation days, and inadequate career development [11]. Their study proposed the use of public programs to alleviate seafarers’ anxiety while onboard and prepare them for a stable life after disembarkation. Lee et al. (2022) proposed that any discrimination in employment and welfare environments between foreign and domestic seafarers must be eliminated to ensure the sustainability of South Korea’s shipping industry [12]. They suggested the reinforcement of human rights education to foster a positive onboard work culture.

Second, we examined research papers on the employment and welfare of seafarers in China. Li, Kevin et al. (2014) investigated the key contributors of job satisfaction among Chinese seafarers and factors affecting job retention [13]. Their study revealed promotion to be the most significant factor affecting job satisfaction and concluded that salary, welfare benefits, and working conditions have significant effects as well. Further, Mellbye et al. (2017) analyzed the frequency of occurrence and trends of depression and suicide among Chinese seafarers and focused on changes in mental health by position and gender to identify optimal policies to reduce these issues [14]. Their study emphasized the importance of considering these factors to ensure that seafarers continue to board vessels for seafaring purposes. Similarly, Zhang, Pengfei, and Minghua Zhao (2017) identified some of the issues faced by Chinese seafarers, such as difficult working hours, nutritional deficiencies, the lack of recreational activities, and poor mental health conditions, using onsite surveys and interviews [15]. Their study indicated considerable gaps between Chinese standards and IMO and ILO standards. Additionally, it pointed out that power struggles between health and transportation authorities present obstacles to promoting and enhancing the health of seafarers. Therefore, these researchers proposed that improvements should be made at the governmental level. This study by Exarchopoulos et al. (2018) critically examined the employment and welfare issues faced by Chinese seafarers as per the regulatory framework established by the Maritime Labour Convention, 2006 [16]. They proposed legal and institutional amendments to reduce the unfair treatment and exploitation of Chinese seafarers. Further, Zhang, Pengfei et al. (2019) emphasized the importance of upholding Chinese seafarers’ human rights and right to life, stating that international organizations must clarify the legal basis for seafarers’ right to life [17]. Their study emphasized the obligations of port states and flag states and proposed the establishment of cooperative network governance between shipping companies and nations. In their study, Zhao, Minghua, Pengfei Zhang, and Gaochao He (2021) stated the necessity of establishing and operating Port-Based Welfare Services in China [18]. They asserted that such facilities should not be entrusted solely to the private sector but be supported by public and government funding. Further, Shan, Desai, and Pengfei Zhang (2021) examined compensation rights to ensure the sustainable employment of Chinese seafarers and clarify whether multinational shipping and vessel management companies were appropriately complying with their compensation obligations [19]. Their findings revealed that most companies did not meet even the legal standards of compensation obligations. Cadge et al. (2022) investigated qualitative data to determine whether seafarer welfare centers and port-based welfare services satisfied seafarers’ expectations according to the seafarer welfare regulations under MLC 2006 [20]. Their study found that the port authorities, shipping companies, and government of China were excessively relying on free welfare services for seafarers and suggested corrective measures and regulatory enhancements to address this issue.

In summary, these studies analyzed the necessity of ensuring sustainable employment and welfare for South Korean and Chinese seafarers aboard ships. However, most of these studies addressed issues related to the characteristics of seafaring labor or confirmed result-oriented facts alone. In addition, these studies analyzed issues arising from the unique institutional and cultural contexts of South Korea and China independently and, hence, lacked improvement suggestions from comparative and integrated perspectives. Moreover, they did not suggest adequate practical policy proposals and implementation models. The current study overcomes these limitations, identifies major problems, and proposes improvement measures by comparing sustainable seafarers’ employment and welfare systems and support cases among South Korea and China. In this manner, we establish a regional initiative based on the maritime education and training shared by South Korea and China. Furthermore, we present cooperative seafarer policy measures that utilize the Asia Maritime Education, Employment, and Welfare Support Center in cooperation with other Asian countries to recognize the roles and value of seafarers as essential workers. Using this initiative and policy measures, we develop systematic solutions with other countries in the Asian region to address issues related to sustainable employment and welfare commonly faced by seafarers in South Korea and China and, thereby, contribute to the competitiveness of the global shipping industry.

3. Materials and Methods

3.1. Theory

3.1.1. Application of the Virtuous Circle of Sustainable Growth Theory for Enhancing Sustainable Employment and Welfare

The virtuous circle of sustainable growth theory for enhancing sustainable employment and welfare based on state-led social policies in partnership with private companies involves supporting the improvement of workers’ knowledge and skills to increase their employability and enhance labor utilization. According to the virtuous circle of sustainable growth theory for enhancing sustainable employment and welfare, state-led social policies increase investment in human capital, enhance employment stability, and, ultimately, have a positive impact on the growth of the national economy [21]. Such policies macroscopically increase the employment rate by improving the employability of citizens and efficiency of resources. Furthermore, they improve the quality of employment, which encourages workers to invest in self-development and employers to expand vocational training and increase investment in facilities. This enhances employment stability and leads to the expansion of new welfare, which secures sustainable work capabilities [22]. Applying the virtuous circle of sustainable growth theory for enhancing sustainable employment and welfare implemented through state-led social policies to the relationship between seafarers as workers and shipowners as employers and reinterpreting the theory can provide suggestions to enhance the sustainability and competitiveness of the shipping industry.

Further, the state and shipping companies must implement the following measures to enhance sustainable employment and welfare: The state should develop and support legal frameworks to promote standardized maritime education and training on par with global standards, as well as facilitating competency enhancements for seafarers based on the STCW Convention to increase seafarers’ employability and onboard adaptability. In addition, individual shipping companies should utilize artificial intelligence (AI)-based digital platforms and encourage seafarers to participate in the Seafarer Success Support Program, focusing on the continuous self-development and career development of seafarers in the step-by-step seafarer growth process. Moreover, the state must establish a stable economic foundation by providing diverse financial support measures, such as national pension, health insurance, employment insurance, and retirement pension, to ensure the post-disembarkation livelihood of seafarers. Shipping companies should promote efficient resource utilization by allowing retirees aged 60 years or older to board vessels on a contract basis for a certain period whenever the need arises. Further, they should use seafarer insurance to enhance employability and national economic growth.

In summary, the virtuous circle of sustainable growth between shipowners, representing private shipping companies, and the nation, representing the public, with seafarers in the center, is completed at three levels. First, at the private enterprise level, shipping companies must improve the onboard working environment to enhance the quality of employment for seafarers. Second, at the national level, legal frameworks must be established to promote policies that bolster seafarers’ safety and rights. Finally, cooperative network governance must be implemented between private entities and the state and be continuously improved and developed. Due to the global nature of the seafaring profession, global shipping competitiveness must be enhanced by formulating an international initiative that establishes common seafarer policies among various stakeholders and cooperating nations and enables seafarers to enjoy the benefits of sustainable employment and welfare improvements.

3.1.2. Sustainable Seafarer Employment and Welfare Systems

In present-day industrial society, welfare systems, along with wages, are recognized as an important factor that influences the employment of workers. Welfare systems play an important role in securing a sustainable workforce, strengthening employees’ commitment to their organization, and maintaining employment by complementing wages [23]. In particular, seafarers must work and live aboard various vessels in isolation from their families and society and obey different orders and commands. Furthermore, their working environment is relatively harsher than the environments of most land-based occupations [24]. Due to these reasons, both shipping companies and nations should formulate and provide policies in a virtuous circle in a multilayered manner to ensure that seafarers receive sustainable employment and welfare [25]. Traditionally, seafaring has been perceived as a relatively difficult occupation in social terms since it involves experiencing isolation and facing inherent challenges. Even though the difference in the level of isolation between land and sea has been somewhat alleviated by the automation of vessels and development of V-SAT digital communications using low-orbit satellites, there remain limitations to solving the fundamental problems associated with improving seafarers’ employment and welfare. Therefore, nations must compensate for the constraints of maritime labor and provide systematic measures that are different from those implemented on land to stabilize sustainable employment and welfare [26,27].

South Korea and China hold the reputation of being major shipping nations and are Category (a) council member states of IMO. They have similar environmental conditions in terms of stimulating the shipping industry and maritime education [28]. First, in South Korea, institutions such as Korea Maritime and Ocean University (KMOU), Mokpo National Maritime University (MMU), Incheon Maritime High School (IMHS), Busan Maritime High School (BMHS), and Korea Institute of Maritime and Fisheries Technology (KIMFT) ocean polytechnic program offer maritime education and training, fostering approximately 1403 seafarers annually. However, as depicted in

Table 1. Trend of changes in the number of seafarers employed in South Korea from 2018 to 2023.

Job Category/Year	2018	2019	2020	2021	2022	2023
Total (rate of decrease; %)	34,751	34,123 (−1.81)	33,565 (−1.63)	32,510 (−3.14)	31,867 (−1.98)	30,587 (−4.01)
South Korea–flagged vessel seafarers	31,795	31,214	31,035	30,337	29,919	28,864
Merchant vessel seafarers	16,416	16,179	16,060	15,652	15,501	16,152
Fishing vessel seafarers	15,379	15,035	14,975	14,685	14,418	12,712
Overseas employed seafarers	2956	2909	2530	2173	1948	1723

Unit: person. Source: Ministry of Oceans and Fisheries, Korea Seafarers Statistics 2024. https://www.mof.go.kr/statPortal/cate/statView.do, accessed on 23 August 2024.

, the employment rate of South Korean seafarers declined annually from 2018 to 2023, ranging between −1.63% and −4.01%, due to the disparity in wages between occupations on land and sea; seafarers’ dissatisfaction with welfare systems; and isolation from their families, along with the social trend of valuing work-life balance. This trend is supported by a 2021 BIMCO report that confirms that South Korea is facing issues associated with the decline in the number of seafarers, an increase in the number of foreign seafarers, and the aging of the seafaring workforce [2]. To address this seafarer shortage, the South Korean government amended the “Enforcement Decree of the Act on Maintaining the Functioning of Shipping and Ports” and adopted a system that requires the mandatory crew size per vessel to be 11 individuals, including the captain and chief engineer, for nationally essential vessels and allows foreign seafarers to work onboard as crew members in other cases [29].

Second, as presented in

Table 2. Changes in the number of students enrolling in maritime education institutions in China from 2016 to 2020.

Job Category/Year	2016	2017	2018	2019	2020
Navigation	8229	6844	9248	10,536	10,451
Engine	6065	4962	6365	6767	7047
Electrical/electronics	1041	997	1385	1561	1686
Total	15,335	12,803	16,998	18,864	19,184
Rate of change		−16.51%	32.78%	11.01%	1.69%

Unit: person. Source: 2020 China Seafarers Development Report. https://www.msa.gov.cn/html/xxgk/tzgg/cygl/20210625/74782131-A023-4AEB-BD36-629355A80040.html, accessed on 23 August 2024.

, China is the second largest supplier of seafarers in the world, after the Philippines. In China, seafarers are fostered by institutions such as SMU, DMU, and nonmarine maritime education institutions, which focus on navigation, engine design, and electrical and electronics. However, the supply rate drastically declined from a peak value of 32.78% in 2018 to 1.69% in 2020. An examination of the causes of this decline revealed that China’s adoption of the “one-child policy”, a birth restriction policy allowing only one child per family, in 1980 resulted in the creation of numerous nuclear families. This phenomenon, along with the development of the Chinese economy and a relative decline in the attractiveness of working aboard vessels, resulted in an unstable supply of seafarers [30].

The main cause of this phenomenon in South Korea and China was found to be a combination of low social perception of seafarers, the inadequacy of welfare systems, the expansion of unstable jobs in the form of short-term contracts, and the absence of sustainable legal frameworks at the national level. Furthermore, seafaring’s attractiveness as a profession has gradually declined due to the major drawbacks concerning the isolation of seafarers from society and their families and the provision of relatively poor working conditions compared to other professions. Ultimately, the vessel owners of shipping companies from the private sector and the state from the public sector must jointly improve the social status and perception of seafarers, enhance welfare systems, and improve the employment environment and working conditions within the shipping industry to secure its competitiveness, which plays an essential role in stabilizing the global logistics supply chain. Therefore, South Korea and China, both of which supply seafarers—essential workers who perform important roles in the international shipping industry—must solve the issues associated with the sustainable employment and welfare systems of seafarers using a comprehensive multilayered framework by establishing cooperative network governance with other countries in the Asian region [31]. While establishing cooperative network governance with other Asian nations, numerous alternatives must be considered, and plans should be made to solve social problems through interactions among horizontal, self-organizing characteristics to secure an institutional mechanism that enables stakeholders within the governance to share information among themselves [32], thereby contributing to the stable development of the global shipping market through “sustainable employment security and welfare enhancements for seafarers”.

3.2. Methodology

The comparative case study approach explains design logic based on samples, similar to the statistical analysis research method. This approach is frequently used by qualitative studies in the field of social science because, instead of investigating and analyzing quantitative results, it makes it easier to select representative cases with specific criteria, expand the applied theory, and examine commonalities and differences to derive results [33]. Therefore, this study intended to derive convincing improvement strategies by comparing and analyzing cases from South Korea and China according to certain relevance and criteria [34]. Specifically, this study expanded the applied theory by comparing two cases from South Korea and China regarding the provision of sustainable employment and welfare systems for seafarers. This approach is based on the institutional environment and social context of the two countries and effectively identifies important differences and suggests improvement strategies [35]. In addition, this study derived the basis for establishing cooperative network governance—the governance that supports “sustainable employment security and welfare enhancements for seafarers”—among countries in the Asian region; this is proposed in Section 7.

The structural characteristics of the comparative case study approach selected in this study are summarized as follows: First, the comparative case study analysis is used to qualitatively compare the employment and welfare systems of seafarers in South Korea and China based on statistical data and a literature review. Subsequently, this analysis establishes the concepts of national social policies within legal frameworks and identifies differences to improve them. Further, common legal and institutional areas are identified through representative cases, and the differences in other areas are explained to promote upward standardization from the national to international level. This methodology highlights practical and specific improvement measures for the development of seafarers’ employment and welfare systems.

Second, the comparative case study on South Korea and China as comparative groups must consider various social, legal, and economic factors when analyzing the seafarers’ employment and welfare systems in the shipping industry. Therefore, the comparative case study method is suited to this study. This approach analyzes the cases of two countries that are facing common challenges in terms of employment stability and welfare systems for seafarers to provide a basis for effective policy proposals. Figure 1 depicts the methodological structure of this study and illustrates the logical flow of the comparative case study approach for analyzing seafarers’ sustainable employment and welfare systems within the scope of national social policy systems.

Third, the comparative case study is utilized as a tool for identifying common areas and logically explaining the differences in other areas. This tool can analyze national-level social policies and provide an important basis for improvements. In particular, it analyzes sustainable employment and welfare systems in a multilayered and systematic manner to derive the policy differences among and common issues faced by countries. As a result, an institutional mechanism that enables the stakeholders of network governance to share information with each other can be secured to contribute to sustainable employment security and welfare enhancements for seafarers, which has significant public value [32].

Fourth, the comparative case study approach has the limitation that it may reflect researchers’ subjectivity. To overcome this drawback, this study adopted a method of presenting evidence based on various literature reviews to qualitatively analyze cases from South Korea and China pertaining to the seafaring profession. This study contextually classified types, encompassing the complexity and unique attributes of the cases as well. Moreover, this study’s objectivity and reliability were maximized, and a logical basis was established by using limited official seafarer statistics.

Therefore, the comparative case study method utilized in this study is suitable for explaining the background of research that discusses issues related to seafarers’ sustainable employment and welfare. Further, it can suggest practical and specific solutions for various issues, particularly solutions that will be needed to establish cooperative network governance with other countries in the Asian region in the future. This methodological approach can be utilized as an essential tool for improving sustainable employment and welfare systems for seafarers in South Korea and China, as well as promoting the future development of the shipping industry.

4. Comparison of Seafarer Supply Status between South Korea and China

4.1. South Korea

South Korea’s shipping industry developed a unique economic growth path in the 1970s and 1980s by acquiring vessels and shipping management expertise through the overseas employment of South Korean seafarers and, thereby, contributed to the development of the nation [36]. According to the Review of Maritime Transport 2023 compiled by UN Trade and Development (UNCTAD), South Korea has 1615 vessels, which account for 3.93% of the entire global fleet. As the seventh largest ship-owning country in the world, South Korea has an influential role in the global shipping industry [37]. South Korean shipping companies transport 99.7% of their imported and exported goods by sea and handle significant amounts of strategic materials. Furthermore, they play a key role in the economy and national security of South Korea due to its geopolitical location. In 2022, 170 South Korean shipping companies owned 1665 ocean-going vessels with a total transport capacity of 9,922,000 DWT and generated 38.3 billion dollars as freight revenue and, thereby, contributed to the service balance of the international balance of payments [37]. In addition, the Ministry of Oceans and Fisheries recently adopted measures, such as policy finance and tonnage tax benefits, to support the growth of the shipping industry; further, the ministry is continuing its efforts to become one of the “Top 5 Shipping Nations.” Moreover, the shipping industry plays an important role in national security and emergency response formulation. During wartime, the onboard ship reserve service system assigns to seafarers, who are essential workers for the country, the duty and responsibility of transporting war supplies and materials. Furthermore, merchant vessels engaged in international trade enhance the nation’s image by functioning as maritime ambassadors. Additionally, they generate employment in related industries, such as shipbuilding, ship equipment development, ports, and leisure, and generate economic ripple effects that drive the overall growth of the national economy [38]. Therefore, to ensure the sustainability of the shipping industry, the nation should enhance its seafarers’ employment and welfare systems to maintain a stable supply of seafarers as essential workers and enhance the social perception of the seafaring profession.

According to BIMCO’s Seafarer Workforce Report: The Global Supply and Demand for Seafarers in 2021, it is expected that 89,510 additional seafarers will be needed to operate global merchant fleets by 2026. Furthermore, major shipping nations will experience a severe shortage of seafarers in the next five years. Therefore, it is necessary to enhance the sustainable education and training, employment, and welfare of seafarers [2].

To address the global seafarer shortage problem, the Ministry of Oceans and Fisheries of South Korea prepares and publishes seafarer statistics annually to monitor the status of South Korean seafarers and use the statistics as foundational data to formulate comprehensive national seafarer policies. As depicted in Table 1, the number of employed South Korean seafarers was 34,751 in 2018 but decreased to 30,587 in 2023. On the other hand, the number of foreign seafarers employed by South Korean shipping companies has steadily increased over the years, as indicated by

Table 3. Numbers of foreign seafarers employed by South Korean shipping companies from 2018 to 2023.

Year			Nationality
	Total	Yearly Growth Rate (%)	China	Indonesia	Vietnam	Myanmar	Philippines	India	Other Countries
2018	26,321	-	1501	9084	5355	4346	5779	0	256
2019	26,331	0.04%	1304	9498	5452	4306	5557	0	214
2020	26,775	1.69%	978	10,699	5025	4376	5464	0	233
2021	27,333	2.08%	625	11,166	4405	4653	5880	0	604
2022	28,281	3.47%	337	11,985	4115	4719	6357	657	111
2023	30,436	7.62%	218	13,107	4322	5025	6878	735	151

Unit: person. Source: Ministry of Oceans and Fisheries, Korea Seafarers Statistics 2024. https://www.mof.go.kr/statPortal/cate/statView.do, accessed on 23 August 2024.

. In 2023, 30,436 foreign seafarers (an increase of 7.62% compared to 2022 data) were employed in place of South Korean seafarers. Specifically, South Korean shipping companies most commonly employ Indonesian seafarers, followed by seafarers from the Philippines, Myanmar, Vietnam, India, and China in that order.

On analyzing these statistics and relevant changes in domestic and international environments in a comprehensive and multilayered manner, it is inferred that the increasing influx of foreign seafarers has a negative impact on the domestic seafarer fostering and supply system and may ultimately lead to a consistent decline in the supply of skilled seafarers. In particular, based on 2024 data, designated maritime education institutions in South Korea generate approximately 1403 seafarers annually. This number is insufficient to meet the seafarer demands of domestic and global shipping companies. Hence, difficulties may arise in maintaining a virtuous cycle that secures the competitiveness of the shipping industry by fostering skilled seafarers, ensuring sustainable employment, and providing welfare. To address these issues, comprehensive measures such as improving the quality of sustainable seafarer education and training, ensuring employment stability, and enhancing welfare levels should be implemented.

4.2. China

The shipping industry of China is a key element of the nation’s logistics and accounts for approximately 93% of the country’s trade volume. Moreover, Chinese seafarers are considered essential workers of the shipping industry. They are not only involved in the operation of vessels but also support the sustainable development of shipping and port logistics and the resilience of the global supply chain, even amid unforeseen risks such as the COVID-19 pandemic. Nevertheless, China’s shipping industry faces the risk of undermining its long-term competitiveness due to the shortage of seafarers [39].

To solve this issue, China prioritizes the education and training of seafarers and manages more than 130 maritime education and training institutions that foster the largest number of seafarers in the world. According to the 2020 China Seafarers Development Report (published in June 2021), the number of registered seafarers in China at the end of 2020 was 1,716,866, which indicates an increase of 3.5% over the previous year’s data. Among the registered seafarers, 258,896 were women and 592,998 were engaged in international voyages; these values indicate an increase of 3.0% over the same period [40]. As depicted in

Table 4. Number of registered international seafarers on ocean-going ships from 2016 to 2020.

Year	2016	2017	2018	2019	2020
International seafarers	497,197	524,498	545,877	575,823	592,998
Yearly growth rate (%)		5.49	4.08	5.49	2.98

Unit: person. Source: 2020 China Seafarers Development Report. https://www.msa.gov.cn/html/xxgk/tzgg/cygl/20210625/74782131-A023-4AEB-BD36-629355A80040.html, accessed on 23 August 2024.

, the number of Chinese seafarers engaged in international voyages was approximately 593,000 in 2020, that is, an increase of 2.98% compared to 2019 [41]. However, the number of Chinese seafarers and registered licenses for serving aboard vessels flagged by foreign countries decreased by 16.52% in 2020 compared to 2019, as depicted in

Table 5. Numbers of dispatched seafarers for the period 2016–2020.

Position	2016	2017	2018	2019	2020
Captain	6497	6678	6094	6312	5519
First officer	6075	6623	6179	6589	5736
Second officer	6767	7124	6640	7014	6045
Third officer	7805	8061	7117	6991	5403
Chief engineer	6474	6695	6131	6419	5544
First engineer	5482	6079	5738	6226	5494
Second engineer	6640	7103	6649	6770	5820
Third engineer	7525	7455	6622	6343	4584
(Total, including others)	142,738	138,854	128,382	137,569	114,843
Yearly growth rate (%)		−0.272	−7.54	+7.16	−16.52

Unit: person. Source: 2020 China Seafarers Development Report. https://www.msa.gov.cn/html/xxgk/tzgg/cygl/20210625/74782131-A023-4AEB-BD36-629355A80040.html, accessed on 23 August 2024.

. This decline was due to the increased demand for seafarers from Chinese shipping companies and the imposition of strict control measures on Chinese seafarers during the COVID-19 pandemic [40].

The Ministry of Transport of the People’s Republic of China developed plans to improve seafarers’ career development, educational services, and onboard working conditions with the goal of enhancing the seafarer fostering system, stabilizing the seafarer supply chain, and creating a sustainable virtuous cycle for maritime professionals both on land and at sea. The ministry established these plans through the Notice of the Ministry of Transport on Issuing the “Development Plan for Chinese Seafarers (2016–2020)”, which was based on China’s Third Five-Year Plan. On this legal and institutional basis, China has recognized the roles and value of seafarers as essential workers and strengthened its comprehensive support for seafarers’ sustainable employment and welfare to ensure their contribution to the national strategy and shipping and port industries [42]. Further, based on its notice regarding the issue of the Development Plan for Chinese Seafarers (2016–2020), the Ministry of Transport has expanded its efforts to foster seafarer training through designated maritime education institutions. By doing so, the ministry first satisfied the domestic demand for seafarers by taking into consideration the global seafarer supply and demand. Further, the ministry solved the issue of oversupply of seafarers by dispatching excess seafarers to advanced shipping markets, such as Europe and Japan [40]. However, the 2008 global economic crisis and COVID-19 pandemic imposed limitations on the overseas dispatch of Chinese seafarers. Despite these circumstances, China strengthened its seafarer education and training systems from an institutional perspective and enhanced relevant legal frameworks to achieve the goal of “sustainable employment security and welfare enhancements for seafarers”, thereby indirectly enhancing the competitiveness of its shipping companies.

4.3. Summary and Implications

South Korea and China operate designated maritime education and training institutions at the national level to foster and support seafarers’ role as essential workers in the maritime industry. Accordingly, both countries have established state-led policies for seafarers and implemented legal frameworks and policies focusing on job creation, national defense, industrial competitiveness, and seafarer education and training [43,44]. Nevertheless, both South Korea and China are experiencing high seafarer turnover rates and shortages. From a public perspective, the countries lack state-led seafarer employment and welfare systems and require the implementation of relevant legal frameworks [45]. To address these issues, this study suggested that authoritative national seafarer statistics should provide quantitative evidence. However, there are limitations to this method because the seafarer statistics from South Korea and China cover different periods, and the scope of disclosure regarding the statistics’ purpose and subjects is inconsistent between the countries’ statistics. This study revealed the inconsistency in the periods covered by the seafarer statistics of the two countries and focused on providing a basis for interpretation centered on the seafarer supply and demand trends.

South Korea and China should abandon their outdated education and training method, which simply focuses on supplying seafarers through standardized curricula at designated maritime education institutions. Instead, they should consider a win-win approach of establishing cooperative network governance with other countries in the Asian region to comprehensively support the employment and welfare of seafarers. Currently, the shortage of seafarers is more than just a management issue faced by shipping companies owned by certain individuals. Rather, it is a challenge that should be addressed by all countries in the Asian region by forming a joint network. Since the provision of sustainable employment and welfare systems by individual shipping companies has limitations, this issue must be solved by establishing cooperative network governance.

5. Comparative Analysis of the Seafarer Employment and Welfare Systems in South Korea and China

5.1. South Korea

5.1.1. Legal Basis and Details

South Korea’s Seafarers’ Act, which was enacted in 1962, has been amended numerous times to focus on the employment and welfare of seafarers. Historically, South Korea’s Seafarers’ Act was influenced by Japan’s Seafarers’ Act and was enacted as Act No. 963 on 10 January 1962, after the liberation of Korea. Subsequently, until 2024, South Korea’s Seafarers’ Act has undergone a total of 54 full and partial amendments [46]. The Seafarers’ Act regulates matters related to labor conditions, services, employment security, welfare, education, and training to enhance seafarers’ basic living standards and advance their capabilities. Importantly, South Korea revised the Seafarers’ Act in 2012 to implement global labor standards adopted by MLC 2006 in domestic law. South Korea first incorporated MLC 2006 into the Seafarers Act, a domestic legislation, before depositing the instrument of ratification with the ILO Secretary-General on 9 January 2014.

The Act consists of 17 chapters. Chapter 8 clarifies aspects such as onboard meals, safety, and health, whereas Chapter 9 addresses the protection of juvenile seafarers and female seafarers. Further, Chapter 10 covers compensations for accidents, and Chapter 11 elaborates on welfare, employment stability, and education and training. Whereas Chapter 12 addresses seafarers’ working conditions and welfare by prescribing employment rules, Chapters 11 and 15 include institutional provisions pertaining to seafarers’ job security, capability development, welfare, and job search assistance. However, these regulations primarily focus on the functions of institutions such as KSWEC rather than directly on seafarers. Nevertheless, some of the regulations address seafarers’ employment stability and welfare [47].

According to Article 2, Item 9 of the Seafarers’ Act, seafarers’ employment agreements refer to contracts in which a seafarer provides labor to a shipowner while onboard a vessel and the shipowner pays the seafarer wages in return [48]. Article 34 of the Act prescribes the duration of seafarers’ employment agreements and states that parties to a contract can terminate the contract by providing written notice with a notice period of 30 days or more [46]. Regarding seafarers’ employment agreements that specify a particular vessel, the shipowner can set the duration or voyage with the seafarer’s consent before entering into the contract, and the contract ends when the agreed-on period expires.

5.1.2. Policy Support

Article 107 of the Seafarers’ Act states that the Ministry of Oceans and Fisheries must formulate and implement a master plan for support policies focusing on the employment and welfare of seafarers (Seafarer Policy Master Plan) every five years, following deliberation by the Seafarer Policy Committee [49]. In 2019, the Ministry published the first Seafarer Policy Master Plan, detailing key objectives for sustainable seafarer employment and welfare from 2019 to 2023. The objectives include ensuring seafarers’ claims for wages, improving retirement benefits systems, bolstering human rights conformance, enhancing welfare systems, and expanding healthcare facilities. Regarding the provision of sustainable employment and welfare to seafarers, the South Korean government established KSWEC to provide welfare services at the national level, such as a maritime telemedicine system, scholarships for seafarers’ families (children), the operation of port welfare facilities, and support for wedding and funeral expenses. However, the South Korean government faces limitations in expanding welfare programs due to budgetary insufficiency every year [50]. The welfare services provided by the private sector are relatively passive, with shipowners or seafarers’ unions leading the efforts to enhance the employment and welfare of unionized seafarers by providing welfare services such as support for weddings and funerals and the operation of recreational facilities. However, in reality, shipping companies tend to hire seafarers based on fixed-term employment contracts. As a result, the companies consider seafarers’ education, training, and welfare—which require long-term investments—additional expenditures and, hence, tend to avoid such them. There is definitely a considerable gap in the scope and quality of the services provided by different shipping companies, depending on their size, to enhance seafarers’ sustainable employment and welfare [51]. Even though South Korea has established legal frameworks to enhance sustainable employment and welfare based on the Seafarers’ Act and relevant seafarer policy master plan, the welfare benefits experienced by seafarers remain limited. These limitations result from a lack of long-term budgetary investment, an increase in the hiring of foreign seafarers by private shipping companies, and the adoption of a passive approach to investing in the well-being of South Korean seafarers.

5.2. China

5.2.1. Legal Basis and Details

China operates various social insurance programs for seafarers, the same as those for land-based workers, including pension, medical, unemployment, industrial accident, and maternity insurance programs [52]. However, seafarers are unable to sufficiently utilize these social insurance programs since they are only permitted three to four vacation days annually and have irregular vacation periods, as well as an insufficient understanding of how to utilize these benefits. Therefore, taking into consideration the unique characteristics of seafarers, China is making efforts to provide special employment and welfare benefits that are more favorable to seafarers than those offered to land-based workers [41]. For example, Chinese seafarers are recognized with a maritime lien on their vessel if they experience delays in the payment of wages. In the event wages or social insurance premiums remain unpaid, seafarers can apply for ship arrest, as well as receiving a minimum of 2.5 paid vacation days for each month served onboard. Moreover, under the income tax reduction policy for deep-sea seafarers announced in November 2019, Chinese seafarers whose service on board deep-sea fishing vessels exceeds 183 days a year from 1 January 2019, to the end of 2023 can receive a 50% reduction in their taxable income from working aboard the deep-sea fishing vessels [53]. In support of this policy, China enacted Chapter 4: Regulations on the Job Security of Seafarers of the People’s Republic of China under the Measures for the Management of Onboard Working and Living Conditions of Seafarers of the People’s Republic of China as a representative legal basis for seafarers’ employment and welfare. Nevertheless, the Treaty Conclusion Procedure Law of the People’s Republic of China, which was enacted and implemented in 1990, stipulates that if the content of a treaty or an agreement differs from the domestic laws of the signatory nations, the treaty or agreement will enter into effect only after both nations have completed domestic legal procedures and notified the other nation through a diplomatic memorandum. While China adopted the MLC 2006 on 12 November 2015, Chinese domestic laws on Seafarers’ working conditions and welfare face challenges in effective implementation. Unlike South Korea, China has not yet enacted separate laws such as the Seafarers’ Act.

Instead, China considers seafarer-related aspects a part of its maritime law and thereby lacks sufficient legal basis [54]. From a historical perspective, the legislative framework governing the welfare and employment of seafarers in Japan has a long history, with the first Seafarers’ Act being enacted in 1899. The roots of this legislation can be traced back to 1875. However, the 1899 Seafarers’ Law placed greater emphasis on the administration of seafarers’ duties than on the protection of their labor rights and welfare benefits. Matters not covered by the Seafarers’ Law were subject to the application of commercial law. In 1937, Japan’s Seafarers’ Act established a distinction between the protection of seafarers’ labor and the application of commercial law. The Seafarers’ Act of 1947 was subsequently adapted to reflect economic developments, incorporating provisions pertaining to labor contracts, welfare, salary, working hours, and paid leave. Further legislation, including the Seafarers’ Health Insurance Law and the Seafarers’ Occupational Safety Law, has established a comprehensive legal framework for the protection of seafarers’ labor rights. As a regional leader, Japan has effectively standardized regulations to enhance seafarers’ welfare and sustainable employment. This approach provides valuable benchmarks for China to consider in improving its own seafarer protection framework.

To compensate for these legal deficiencies, the Ministry of Transport of the People’s Republic of China established a plan on 8 December 2020, to enact a separate seafarers’ act and stipulate the seafarers’ employment and welfare rights by 2035 under the Notice of the Ministry of Transport on Improving the Comprehensive Transportation Law System [55]. In this manner, China is bolstering its efforts at the national level to unify the legal basis for sustainable seafarers’ employment and welfare, reduce unnecessary disputes, and contribute to the stable development of the shipping industry.

5.2.2. Policy Support

In China, the roles and value of seafarers as essential workers are perceived to be relatively lower than those of land-based workers. Even though the Chinese government emphasized building a maritime powerhouse in its Outline of the National Maritime Enterprise Development Plan (published in 2003) and 2008 Outline of the National Maritime Business Development Plan, the social perception of seafarers as an essential workforce remains low primarily due to the formulation of land-centric national policies according to historical contexts centered on the continental state [56,57]. Furthermore, China has historically focused more on land-based agricultural activities for food production than maritime activities because of the influence of Confucianism, which was founded by Confucius and Mencius for thousands of years. This historical context combined with an unwillingness to be away from one’s family resulted in a low social perception and valuation of the seafaring profession. In China, a profession’s social status and perception depend on the level of monetary compensation and welfare benefits. Since the 2000s, the wages and welfare benefits of land-based workers have been improving with the acceleration of economic growth. As a result, in China, the social status and perception of seafarers remain low even though their roles and value as essential workers are recognized [58].

To address these issues, the Maritime Safety Administration of the People’s Republic of China has been conducting the Chinese Seafarers’ Conference on an annual basis since 2011 to recognize the social and economic contributions of seafarers and implement policies to strongly protect labor rights in the shipping sector. In addition, the Ministry of Transport of the People’s Republic of China established the Chinese Seafarers Development Plan (2016–2020) to comprehensively enhance the sustainable employment of and welfare policies for seafarers. To foster well-rounded and skilled seafarers at the national level, the ministry formulated policies to build an application-oriented seafarer development model that innovates seafarer education, training, qualification, and licensing to harmonize the issuance of various certificates related to education and training and establish an open and transparent seafarer supply market to promote the healthy development of the shipping industry [40]. Moreover, the Ministry of Transport of the People’s Republic of China is currently building a service-oriented seafarer management model and promoting the transition to smart management. The ministry is building a public seafarer service system that innovates service methods by enhancing the level of public service and developing a digital platform. Moreover, the ministry is improving the working conditions of seafarers to promote their sustainable advancement [59]. By adopting this comprehensive policy approach, the Ministry of Transport of the People’s Republic of China enhances the sustainable employment and welfare benefits of seafarers and emphasizes and supports the seafarers’ public roles in the shipping industry by upholding their legal rights [60]. Furthermore, the Ministry of Transport of the People’s Republic of China is establishing a minimum legal basis for seafarer employment and welfare policies based on Chapter 4: Regulations on the Job Security of Seafarers of the People’s Republic of China under the Measures for the Management of Onboard Working and Living Conditions of Seafarers of the People’s Republic of China.

5.3. Summary and Implications

The International Seafarers’ Welfare and Assistance Network clarifies that the establishment of sound mental health measures by ensuring seafarers’ employment, health and safety, living and working conditions, welfare, medical care, and social security, as stipulated by MLC, can fundamentally reduce maritime accidents. Nevertheless, seafarers, due to the nature of their profession, work aboard vessels and are exposed to higher risks than land-based workers [60]. According to Zhang et al. (2019), the fatality rate of maritime accidents in the United Kingdom during 2002–2013 was 14.5% per 100,000 people, which is 21, 4.7, and 13 times higher than the rates for general, construction, and manufacturing industries, respectively [17]. The risks include mental stress, depression, frustration, and loneliness that arise from the environmental factors affecting seafarers, such as separation from home and family, as well as from land, for extended periods and working independently aboard vessels in an environment that does not distinguish between rest and work.

The cases from South Korea and China that overcome these challenging risk factors are summarized as follows: First, South Korea aims to provide stable employment for seafarers and improve the quality of their onboard living conditions by establishing a master plan for enhancing seafarers’ employment security and welfare benefits using the Seafarers Act. In addition, South Korea has implemented various seafarer employment security and welfare programs through KSWEC, a public institution under the Ministry of Oceans and Fisheries [11]. However, KSWEC faces difficulties in providing and expanding sustainable employment and welfare programs for seafarers since it has financial issues, which are fully funded by the government, and problems with the hiring of dedicated staff. Furthermore, the level of direct welfare services provided to seafarers is relatively lower compared to that provided in land-based workplaces. Therefore, in South Korea, effective and practical improvements in welfare services must be made for seafarers to maintain stable employment—essential workers who are the driving force of development of a sustainable shipping industry [11].

Second, China is one of the world’s leading suppliers of seafarers, with 592,998 seafarers having registered as of 2020. Further, China is an influential player in international coastal trade and shipping. Moreover, in China, seafarers play an essential role in facilitating maritime transportation, which involves more than 50% of domestic coastal trade and more than 93% of international trade. Despite expending efforts to protect seafarers’ human rights, including the establishment of the Chinese Seafarers Development Plan by the Ministry of Transport of the People’s Republic of China and the organization of the Seafarers’ Conference by the Maritime Safety Administration of the People’s Republic of China, China faces difficulties in providing sustainable employment and welfare to seafarers [61]. These difficulties arise from a combination of factors, such as the insufficient availability of employment and welfare services to seafarers compared to land-based workers and the supply imbalance, particularly that due to increased domestic demand for high-quality seafarers, which has led to an increase in the demand for long-term service onboard vessels and short vacations [62].

Despite ongoing operations by the coalition naval forces of the United States and European Union in the Red Sea region, the Houthi rebels’ attacks on merchant vessels are becoming increasingly destructive and frequent. In addition, the impact of maritime risks has increased due to the climate crisis; accordingly, there has been an increase in the cases of South Korean and Chinese seafarers refusing to re-board vessels after disembarking. Moreover, there exists an imbalance in the supply and demand of seafarers worldwide [63]. Therefore, if sustainable employment and welfare policies, as perceived by seafarers, are not implemented, the South Korean and Chinese shipping industries may face a shortage of seafarers—essential workers in the shipping industry—in the future, which can lead to problems in the logistics supply chain at the national level.

6. Discussion

The competitiveness of a shipping industry is secured by stably procuring cargo, increasing the number of low-cost, high-efficiency vessels, and strengthening global cooperation among shipping companies. From a macroscopic perspective, shipping companies are establishing a virtuous cycle system to retain their competitiveness. The virtuous cycle system consists of the procurement of cargo, enhancement of competitiveness through the eco-friendly operation of vessels, and placement of orders for building new vessels according to stable cash flow. Moreover, shipping companies are evolving into digital platform-based Environmental, Social, and Governance companies through vertical and horizontal integration and development across related industries such as shipping, seafarers, shipbuilding, and logistics [64]. However, from a microscopic perspective, it is important for shipping companies to provide employment security and welfare programs that can enhance the engagement of seafarers while working on board vessels. Further, welfare programs must be designed in a multilayered manner that ensures the well-being of seafarers by satisfying their needs. According to Alderfer’s Existence, Relatedness, and Growth Theory, individuals have various needs, and satisfying these needs promotes well-being, which is the final growth need level of self-actualization [65]. Accordingly, shipping companies in South Korea and China must contribute to the safe operation of vessels and secure their competitiveness by designing sustainable employment and welfare benefits with the goal of promoting seafarers’ well-being [66]. However, the benefits provided by shipping companies often do not match the needs of seafarers, which causes a decrease in the level of satisfaction perceived by seafarers [67]. To comprehensively solve these issues, South Korea, with the Ministry of Oceans and Fisheries spearheading related efforts, aims to enhance the level of satisfaction perceived by seafarers regarding their sustainable employment and welfare benefits using the 2020 Seafarer Policy Implementation Plan. The Ministry of Transport of the People’s Republic of China has implemented some minimum sustainable employment and welfare policies for seafarers based on Chapter 4: Regulations on the Job Security of Seafarers of the People’s Republic of China under the Measures for the Management of Onboard Working and Living Conditions of Seafarers of the People’s Republic of China. Nevertheless, effective responses to the ministry’s efforts are lacking. Therefore, the governments of South Korea and China, along with the countries’ education and research institutions, shipowners, and labor organizations, should actively participate and cooperate in expanding joint research with other countries in the Asian region. Such cooperative efforts, utilizing a win-win approach, are necessary to reduce the gap between the levels of welfare satisfaction perceived by seafarers and by governments and shipping companies [68].

In particular, as IMO Category (a) council member states and countries possessing the world’s top 10 largest vessel fleets, South Korea and China have a common goal of enhancing seafarers’ sustainable employment and welfare. Therefore, in South Korea, the Ministry of Oceans and Fisheries is spearheading efforts to formulate and implement a mid- to long-term development plan for seafarer policies, based on advice provided by maritime education institutions fostering skilled seafarers, national research institutes, shipping associations, and labor organizations. Similar to South Korea, China ensures the competitiveness of its shipping industry by fostering seafarers through domestic maritime education institutions and supplying them to domestic shipping companies, according to the Chinese Seafarers Development Plan established by the Ministry of Transport of the People’s Republic of China [69]. However, both South Korea and China continue to face the risk of failing to ensure the shipping industries’ sustainability due to an imbalance between the supply and demand of seafarers. This imbalance arises from a comprehensive and cumulative effect of factors such as an increase in maritime risks caused by war and climate change, a decrease in the wage gap between shore- and sea-based jobs, the occurrence of job insecurity as a result of seafarers’ unstable agreements with fixed periods, and the seafarers’ dissatisfaction with welfare systems.

Therefore, South Korea and China must organize effective regional initiatives in cooperation with other countries in the Asian region to enhance the long-term attractiveness of the seafaring profession from the perspective of mutual prosperity and growth [70]. It is important for these initiatives to contribute to the provision of sustainable employment and expanded welfare benefits to seafarers by leading the development and proposition of seafarer (human)-centered maritime education, research, and legal frameworks to facilitate the adoption of AI-based autonomous vessels [71]. Furthermore, these initiatives should provide benchmarking examples and guidelines for seafarer-supplying countries in the Asian region, such as the Philippines, Indonesia, Myanmar, and Sri Lanka [71]. Specifically, South Korea and China should lead the effort to form a network with other Asian countries to jointly establish the “Asia Maritime Education, Employment, and Welfare Support Center” (tentative name) and define its roles, structure, and operational systems. This center is needed to create sustainable seafarer employment and welfare systems and develop standardized maritime education and onboard training programs that meet global standards.

The “Asia Maritime Education and Onboard Training Support Center” (AMETSC) proposed in this study (Figure 2) will contribute to the global shipping industry in the following manner:

• AMETSC supports the establishment of demand-responsive maritime education institutions in Asian countries that are part of the cooperative network governance system to build advanced maritime education infrastructure. AMETSC provides the latest technologies and equipment through an AI-based digital platform, both online and offline, for maritime education and training as well. In addition, AMETSC operates cooperation programs, such as licensing, qualification examinations, and graduate school programs, with maritime education institutions in South Korea and China.
• Regarding the development of a standardized maritime educational program, AMETSC supports the development of a standardized maritime education curriculum that conforms to the IMO Model Course standards of the IMO STCW Convention. Further, AMETSC supports country-specific education and cultural adaptation programs by dispatching maritime education experts from South Korea and China and through student exchange programs.
• AMETSC provides onboard training opportunities on cutting-edge training ships from South Korea and China. In addition, it offers various training programs for maritime education instructors from specific regions, thereby providing both academic and practical experience to its students. AMETSC supports the standardization of the compatibility of qualification certification through the mutual recognition of maritime licenses among member countries.
• AMETSC builds a comprehensive employment and welfare system for seafarers by utilizing an AI-based digital platform. Through this system, AMETSC supports the development of agendas for sustainable seafarer employment and welfare policies for Asian countries. In addition, the center promotes active maritime communities and provides various face-to-face or remote support programs for onboard living at any time a seafarer is aboard a vessel or the vessel is entering a port. These support programs encompass health insurance; assistance with boarding, disembarkation, or landing; and onboard family visitation. AMETSC introduces the Seafarer Success Support Program through an AI-based digital platform to support the construction of digital infrastructure, which enables seafarers to receive customized employment and welfare support throughout their hyper-personalized life cycle. In addition, AMETSC develops policies to improve the stability of seafarers’ employment and alleviate their job insecurity, while also supporting a survey and feedback system to enhance seafarers’ job satisfaction. Furthermore, the center supports the development of seafarer welfare policies in Asian countries, promotes active maritime communities, and provides various face-to-face or remote support programs for onboard living at any time while on board a vessel or entering a port. These support programs encompass health insurance; assistance with boarding, disembarkation, or landing; and onboard family visitation.

Second, AMETSC, which is proposed in this study and illustrated in Figure 2, will have a cooperative network governance structure, as follows:

• AMETSC is led by South Korea and China and consists of a board of directors, who are recommended by the Asian countries and Asia Maritime and Fisheries Universities Forum (AMFUF) members involved in cooperative network governance; a steering committee; a technical advisory committee; and an audit and evaluation committee. Further, the board of directors includes the representatives of the Ministry of Oceans and Fisheries of South Korea and the Ministry of Transport of the People’s Republic of China, along with the representatives of the governmental maritime agencies of participating Asian countries. Policies on seafarers’ sustainable employment and welfare, as decided by the board of directors in their meeting, are formulated into key implementation strategies. Further, these policies are announced and, subsequently, implemented.
• The steering committee under the board of directors comprises the representatives of maritime education institutions in South Korea and China, as well as those of designated maritime education institutions, shipping companies, and labor organizations in Asian countries. The steering committee manages and oversees maritime education, seafarer employment, and welfare programs.
• The technical advisory committee comprises IMO and international experts in the fields of maritime education, seafarer employment, and welfare. This committee provides advice regarding the latest maritime technologies and educational methods and directions.
• The audit and evaluation committee under the board of directors performs the role of an independent evaluation body. The committee assesses the performance and sustainability of the developed maritime education programs and provides appropriate feedback. The committee conducts regular audits and suggests improvements, as well.

Third, AMETSC, which is proposed in this study and illustrated in Figure 2, will have the following operational structure:

• The operation of the Asia Maritime Education, Employment, and Welfare Support Center is based on a system that utilizes IMO’s Technical Cooperation (TC) Fund to fund its operations. The IMO TC Fund is a fund that is provided to developing countries to strengthen their maritime capabilities. This fund can be used to cover initial establishment costs and secure operational funds.
• Multi-Donor Trust Funds will be established to encourage the participation of the private sector and secure ongoing funding. These funds will target donations from the participating countries’ shipbuilding and equipment companies, shipping companies, labor unions, and maritime education institutions. This financial foundation will ensure the stable operation of AMETSC and enable the establishment of long-term sustainable employment and welfare systems for seafarers.

The expected effects of establishing the Asia Maritime Education, Employment, and Welfare Support Center are as follows: It improves the quality and extent of maritime education in Asian countries, fosters the perception of seafaring personnel as essential workers and enhances their roles, strengthens the status of South Korea and China as global maritime centers, enhances the value and competitiveness of the shipping industries of seafarer-supplying Asian countries, supports economic integration within the Asian region, and provides a leading model for the global shipping industry by advancing international maritime education and enhancing the standard of seafarers’ employment and welfare.

7. Conclusions

This study utilized the comparative case study method to analyze seafarers’ sustainable employment and welfare systems in South Korea and China and highlighted various implications of the analysis. Further, it comprehensively examined the development of the shipping industry, the current status of maritime supply and demand, and relevant legal frameworks. This study emphasized the role and value of seafarers as essential workers in the maritime industry who responsibly maintain the national logistics supply chain, despite leading difficult lives on board vessels as well. Finally, this study comparatively analyzed the commonalities and differences in seafarers’ employment and welfare systems between South Korea and China to identify the problems in establishing sustainable maritime education and employment and welfare systems. Several future-oriented improvement measures to facilitate the mutual development of the two countries with other Asian countries were suggested as well. In this manner, this study provided foundational data to maintain the balance between supply and demand for seafarers. The balance can be achieved by making the seafaring profession attractive, promoting seafarers’ human rights, and enhancing seafarer education and training in cooperation with other Asian countries. These efforts facilitate the global shipping industry’s continuous development centered on South Korea and China. The fundamental data were provided as follows:

First, South Korea and China must establish sustainable seafarer employment and supply systems through mutual cooperation to address seafarers’ employment and welfare issues. This collaboration can help enhance the appeal of the seafaring profession, promote seafarers’ human rights, and improve seafarers’ education and training. Both countries must continue their efforts to improve legal frameworks to stabilize employment and enhance the welfare of seafarers, thereby protecting the seafarers’ rights and supporting them to ensure they work in stable onboard environments.

Second, South Korea and China must collaborate with other Asian countries to establish the Asia Maritime Education, Employment, and Welfare Support Center. They can use this center to advance regional initiatives and boost the shipping industry, as well as enhance seafarer education and welfare standards across Asia.

This study has some limitations in comparatively analyzing the sustainable seafarers’ employment and welfare systems in South Korea and China. First, the seafarer statistics from South Korea and China cover different periods, which makes it difficult to accurately compare and analyze the subjects, scopes, and periods. Second, the comparative case study analysis might not have completely reflected the cultural and environmental differences between the two countries’ shipping industries. Further, the statistical analysis did not sufficiently reflect the experiences and opinions of South Korean and Chinese seafarers. These limitations will be addressed in future research. Nevertheless, this study represents a pioneering attempt to compare and analyze the sustainable seafarer employment and welfare systems of South Korea and China. It thoroughly examined the legal and institutional differences between the two countries and made highly original proposals focusing on the identification of common issues affecting the two countries as well as suggesting practical improvement measures. In particular, by proposing the establishment of the Asia Maritime Education, Employment, and Welfare Support Center, this study contributed to the promotion of a win-win collaboration among the Asian countries and AMPUF members to improve the education, employment, and welfare of seafarers on par with global standards and lay the foundation to lead the global shipping industry with the cooperation of other Asian countries. AMFUF can be an important example in establishing and operating Asia Maritime Education, Employment, and Welfare Support Center. This center may be conducive to promoting and supplementing AMFUF. Thus, the Asia Regional Council on Seafarers will play a crucial role in enhancing the global seafarers’ employment and welfare system, as Asian countries are major suppliers of seafarers worldwide. Furthermore, AMETSC can protect seafarers’ rights and interests.

We are confident that the contributions of this study will serve as a global anchor model and establish a significant milestone for South Korea and China, as well as Asia and beyond.