Daewoo Shipbuilding and Marine Engineering, Samsung Heavy Industries and Hyundai Heavy Industries are reported to be getting ready to cut an additional 80,000 workers as they look to further reduce costs in the wake of huge losses.
The news comes as the Bank of Korea, South Korea’s central bank cut interest rates to 1.5%, an all time low, in order to help the restructure of the country’s shipping lines and shipbuilders. The rate cut follows the creation yesterday of a $9.5bn fund to support the industry.
South Korea’s big three yards are all undergoing restructuring having clocked over KRW8trn ($6.9bn) in losses last year. South Korea’s top nine shipbuilders’ debts now top $84.7bn.