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, cancellations and increased costs. (Image: Yonhap)
SEJONG, Feb. 21 (Korea Bizwire) – The jobless rate in Geoje, located in the southern part of the country, reached the highest level among South Korean cities, as local shipyards implemented massive job cuts amid an industry-wide slump, data showed Wednesday.
According to the data compiled by Statistics Korea, the unemployment rate in the city, home to the country’s major shipyards, including Daewoo Shipbuilding & Marine Engineering Co. (DSME) and Samsung Heavy Industries, stood at 6.6 percent in October of last year, a sharp rise from 2.6 percent a year earlier and the 2.9 percent in April 2017.
Major shipbuilders, such as DSME and Hyundai Heavy Industries Co., have cut jobs and sold non core assets to cope with oversupply and low demand after being hit hard by the 2008 financial crisis.
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, cancellations and increased costs.
(Yonhap)
