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South Korea's top shipbuilders let 3,000 employees go in H1

Staff Writer |
At least 3,000 employees who worked for South Korea's three largest shipbuilders quit their jobs in the first half.

The industry as a whole underwent extensive restructuring to cope with global oversupply and low demand amid a general economic slowdowny.

The country's three biggest shipyards - Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering - have been engaged in drastic restructuring programs led by their creditor banks in recent years after being hit hard by the 2008 financial crisis.

On top of the official data collected from the three shipbuilders, there are 2,000 more employees who left Hyundai Heavy during the first half under the so-called voluntary retirement program. Under this program, companies usually offer a higher-than-usual severance pay, as well as compensation equaling years of their annual salary.

If the job cuts at Hyundai Heavy are taken into account, about 5,000 regular and nonregular workers retired or were forced to quit their jobs in the Big 3 shipyards in the first six months, according to industry sources.

Under their separate self-rescue plans submitted to their creditors, the three shipbuilders said they will reduce their combined workforce by 6,000 this year.

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