Share prices of South Korean shipbuilders rebounded Tuesday on the government’s announcement of restructuring plans.
The nation’s top shipbuilder Hyundai Heavy Industries rose 3.21 percent to close at 112,550 won ($97.90) on the main Seoul bourse, following a 6.03 percent decline on the previous day.
Samsung Heavy Industries rose 0.93 percent to 10,800 won after a 6.96 percent fall on Monday. Daewoo Shipbuilding and Marine Engineering picked up 1.38 percent to 5,150 won on Tuesday after a 4.15 drop on the previous day.
Meanwhile, cash-strapped Hanjin Shipping, which plummeted 29.94 percent Monday on news of the company’s plan for creditor-led debt restructuring, also rebounded 4.11 percent to close at 1,900 won Tuesday.
Financial Services Commission chairman Yim Jong-yong unveiled government plans for restructuring after meeting with vice ministers from economy-related ministries to check on the progress of the restructuring of five ailing industries -- shipbuilding, shipping, construction, steelmaking and petrochemicals.
Prior to the meeting, Yim told reporters that government-led mergers of shipbuilders would not be desirable.
By Kim Yoon-mi (yoonmi@heraldcorp.com)