South Korea’s shipbuilding and shipping segments are in complete meltdown amid debt restructuring efforts and negative financial results, and the real threat of bankruptcy. Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering, have all implemented self-rescue restructuring plans as urged by their creditors. The austerity measures include massive staff lay-offs, executive pay cuts, and disposing of non-core assets and subsidiary businesses. Apart from Korea’s big three, other small to medium sized yards such as Hanjin Heavy Industries & Construction, Sungdong Shipbuilding & Marine Engineering, Dae Sun Shipbuilding & Engineering are also going through restructuring, while STX Offshore & Shipbuilding has filed for a court-led restructuring.
