The South Korean shipbuilding sector could see upwards of 27,000 jobs disappear in the first half of the year, reports Korean media, citing new data from Korea Employment Information Service.
The job loss represents a nearly 15 percent drop from last year’s first half.
The shipbuilding industry continues to be weak, and shipbuilders are expected to trim the number of employees this year as well, Kim Soo-hyun, a director at the Korea Employment Information Service quoted as saying.
The top three shipbuilders -Daewoo Shipbuilding & Marine Engineering (DSME), Samsung Heavy Industries (SHI) and Hyundai Heavy Industries (HHI) – will continue intensive downsizing programs this year, cutting payrolls further.
It is estimated that the big-three shipyards which cut their payrolls by 6,000 jobs last year, would reduce more than 4,000 additional jobs this year.
DSME, which cut about 2,000 jobs last year, plans to slash some 2,000 jobs this year, according to the sources. SHI cut 1,500 jobs last year, is expected to eliminate additional 1,800 jobs this year. HHI, the world’s biggest shipbuilder by orders, is also expected to announce a job cut this year.
The number of employees hired directly by the shipbuilders would be lowered to 39,000 this year from 53,000.
