1. Research Goals and Methods

❚ Research Background and Goals

￮ With the increasing welfare gaps between large and small businesses, the dual structure of the labor market has emerged as a pressing social issue as well as a policy concern that needs to be urgently addressed to reduce such gaps.

￮ The dual structure of the labor market is evident in Jeonbuk’s commercial vehicle industry, potentially posing a fundamental problem to the region. Thus, Jeonbuk State must formulate policies focused on creating high-quality jobs and promoting a collaborative labor-management culture

￮ This study aims to examine the current welfare gaps between large and small businesses in the region’s commercial vehicle industry and derive policy roadmaps to alleviate these disparities. 

❚ Research Methods 

￮ To collect the data needed to improve corporate welfare systems and formulate worker welfare support policies, we conducted a survey using a structured questionnaire from December 20, 2024, to March 10, 2025, targeting businesses and workers in Jeonbuk’s commercial vehicle industry.

￮ The survey covered the general characteristics of respondents and businesses and current labor welfare systems (11 items in four categories). 

­General characteristics: Gender, age, job description, job type, average weekly working hours, presence of labor union, average monthly wages, business size, length of employment, workplace location, worker’s residence, and company profile. 

­Current labor welfare systems and their effectiveness: 1) Scope of corporate welfare services at the workplace, 2) job selection criteria and the impact of corporate welfare on career choice, 3) entities responsible for labor welfare expenditures and justification of such expenditures, and 4) ideas for enhanced welfare systems. 

2. Conclusions and Policy Recommendations

❚ Policy Roadmaps to Improve Welfare of Jeonbuk’s Commercial Vehicle Industry Workers

￮ Jeonbuk’s commercial vehicle industry has witnessed significant gaps between large and small businesses (prime and subcontractors) in wage systems, working hours, and duty assignment.

￮ Therefore, Jeonbuk must support the region’s labor welfare systems from a policy perspective to minimize the existing gaps and allow commercial vehicle industry workers to remain a sustainable local production workforce. To this end, relevant policy roadmaps should be pursued in the context of sustainability, tangibility, and solidarity.

￮ Based on the above policy direction, we propose three key strategic tasks and six major projects to improve the dual structure between prime contractors and subcontractors of Jeonbuk’s commercial vehicle industry and subsequently enhance the labor welfare of the region’s small- and medium-sized companies.

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