[THE INVESTOR] Finance Minister Yoo Il-ho said on July 27 that the government support industries that are undergoing tough restructuring and workers affected to minimize adverse impacts.

The government earlier unveiled a set of stimulus steps, including an 11 trillion won (US$9.71 billion) extra budget, to boost Asia’s fourth-largest economy which has been suffering from faltering exports and lukewarm domestic demand.

Its economy-boosting measures focused on cushioning fallout from industry-wide full-scale restructuring in the shaky sectors like shipbuilding that will likely bring about massive layoffs, weighing heavily on the job market and the entire economy.

Major shipbuilders, including industry leader Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering, announced self-rescue plans, including asset sales and downsizing, following severe financial strain in the face of a fall in new orders amid a protracted slump in the world‘s economy.

“The government will support workers one by one who are experiencing financial difficulties due to the ongoing restructuring,” Yoo said in an economy-related ministers meeting in Seoul. “I will also come up with a comprehensive plan to assist the regions where major shipyards are located.”

The unemployment rate in Ulsan, where the country’s No. 1 shipyard Hyundai Heavy Industries is headquartered, gained 0.4 percentage point on-year to 3.6 percent in June, while South Gyeongsang Province, where other major shipbuilders are located, saw its rate soar 1 percentage point to 3.9 percent. Over the same period, the country’s unemployment rate stood at an average 3.6 percent.

(theinvestor@heraldcorp.com)