Korea’s Big Three to Lose State Aid if Restructurings Fail?

South Korea’s three major shipbuilders could be exempt from the government’s plan to inject KRW 750 billion (USD 653.7 million) into the shipbuilding sector in an effort to prevent major layoffs at over 7,800 companies related to the industry, according to Korea Times.

The three cash-strapped shipbuilders, Hyundai Heavy Industries (HHI), Samsung Heavy Industries (SHI) and Daewoo Shipbuilding & Marine Engineering (DSME), could be left out of the government’s support program as their labor unions are opposing the companies’ restructuring schemes.

The unionized workers of the shipbuilders earlier said that they would launch a strike against the government’s request to submit self-restructuring measures, which may include pay cuts and layoffs.

The management and the unions now have to devise detailed self-restructuring plans, and once the plans are submitted, the government would decide whether to include the three ailing shipbuilders in the support program.

The country announced the financial support program, saying that it would be provided to the companies from the shipbuilding sector, which suspend operations instead of firing workers, for one year.

World Maritime News Staff

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