Slump-hit shipbuilders, related firms cut 35,000 workers in first half

SEOUL, Oct. 10 (Yonhap) -- South Korean shipbuilders and subcontracted firms sharply reduced the size of their workforces in the first half of the year in the face of a drawn-out slump, industry data showed Tuesday. According to the data compiled by the Korea Offshore & Shipbuilding Association, the shipbuilding sector and related businesses slashed workforces by 35,400 in the January-June period, or by 21.3 percent compared to the end of last year. The total number of workers reached 130,800 as of the end of June. South Korea's major shipyards were engaged in painful restructuring efforts last year due to snowballing losses stemming from a tumble in orders. The three major shipbuilders alone -- Hyundai Heavy Industries Co., Samsung Heavy Industries Co. and Daewoo Shipbuilding & Marine Engineering Co. -- implemented self-rescue plans, including asset sales and workforce reductions, to stay afloat. The shipbuilding industry, once regarded as the backbone of the country's economic growth and job creation, has been reeling from mounting losses caused by a fall in new orders, order cancellations and increased costs. Last year, Hyundai Heavy swung into the black, while Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering continued to suffer losses. In 2016 alone, 37,000 workers, or 18.3 percent of the total, left the shipbuilding and related sectors. sam@yna.co.kr (END)