Korea's trade minister called on the country's ailing shipbuilders Wednesday to capitalize on their current crisis as an opportunity to strengthen the industry's constitution and take a new leap forward.

Stung by mounting losses stemming from a global economic slump and stiffer competition, the nation's three major shipyards -- Hyundai Heavy Industries Co., Daewoo Shipbuilding & Marine Engineering Co. and Samsung Heavy Industries Co. -- are all in the midst of sweeping restructuring.

"The local shipbuilding industry should take the current crisis as an opportunity to boost their competitiveness and make another leap," Minister of Trade, Industry and Energy Joo Hyung-hwan said in a meeting with the CEOs of shipbuilders and experts. "We need to make a cool-headed analysis of the competitiveness of the local shipbuilding industry."

The meeting was held to hear about the industry's difficulties and seek ways to tide over the crisis.

According to the ministry, participants exchanged views on bolstering the industry's competitive edge by focusing on high-value-added divisions such as eco-friendly vessels and localizing key parts and components.

They called on the government to step up efforts to create demand in the short term and come up with a measure to prevent a brain drain in the course of restructuring.

In addition, the participants reached an understanding that shipbuilders and their creditors should spearhead the industry's restructuring while trying to ensure optimal competitiveness to prepare for a market recovery down the road.

In order to help local shipbuilders hone their competitive edge over the longer term, the government should make it possible for companies to hire and fire workers more easily, they pointed out.

The ministry said it will put forward a package of steps to support the local shipbuilding industry based on the opinions and the outcome of a private study due out in August. To that end, the ministry plans to form a task force of government officials, private experts and industry representatives.

Korean shipbuilders have been under severe financial strain since the 2008 global economic crisis which sent new orders tumbling amid a glut of vessels and tougher competition from Chinese rivals.

The top three shipyards suffered a combined operating loss of 8.5 trillion won last year due largely to increased costs stemming from a delay in the construction of offshore facilities and an industrywide slump, with the DSME alone posting a 5.5 trillion won loss.

The shipbuilders have recently drawn up sweeping self-rescue programs worth 10.35 trillion won in their desperate bids to overcome a protracted slump and mounting losses. (Yonhap)