Rates cut to record low as Seoul braces for another 80,000 yard redundancies

Rates cut to record low as Seoul braces for another 80,000 yard redundancies

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.

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.

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