Daewoo Shipbuilding & Marine Engineering employees are planning to purchase new shares to be issued by the company as part of its ongoing restructuring efforts to improve its liquidity, DSME said Tuesday.

The South Korean shipyard is planning to issue new stocks worth 2 trillion won ($1.7 billion) as it seeks to recover from mass deficits linked to a global economic downturn that has led to sharp falls in shipbuilding demand.

Some 80 percent of DSME employees have agreed to use their incentive pay, to be issued by the management in line with agreed labor terms, to partake in the firm’s upcoming capital procurement measure.

The bonus pay reportedly stands at around 250 percent of a worker’s regular monthly wage at an average of 3 million won, though the exact amount differs according to each employee’s position. Those who decline to participate will receive their incentive pay as planned.

“DSME employees (who choose to participate) plan to put forward around 150 percent of their incentive pay,” said a DSME official. “This action reflects the employees’ determination to work together to normalize the company’s finances as soon as possible,” he said.

Last month, DSME held an unprecedented company-wide meeting attended by 45,000 people, including some from partnering firms, to discuss ways to overcome the current industry crisis. 

By Sohn Ji-young (jys@heraldcorp.com)