Every economy faces the challenge of realigning its industries in order to nurture new growth engines and weed out nonviable or underperforming sectors. No economy faces the challenge as urgently and acutely as the Korean economy does now.

It is welcome that the government has decided to push what it calls “industrial reform” to foster the competitiveness of the Korean economy.

Deputy Prime Minister Yoo Il-ho said last week the reform will have two tracks -- one to develop new industries and the other to accelerate restructuring of vulnerable industries.

Korea’s industrial prowess, built on manufacturing and heavy industries over the past decades, has been declining rapidly. Cases in point are the shipbuilding and shipping sectors, which have fallen from once proud engines of Korea’s export-driven economy to sources of woe.

The crisis in the two sectors is raising the specter of massive layoffs and huge losses for their creditor banks. The two heavily indebted major shipping companies -- Hanjin and Hyundai -- have been put under the control of their respective creditors and the three shipbuilders -- Hyundai, Daewoo and Samsung -- will have to go through harsh restructuring.

Of course, the extended slump in the global economy is partly to blame for the decline of the industries that once buttressed the Korean economy. But it is not a coincidence that the Korean economy has been stuck in a low-growth trap, as its traditionally strong industries like shipbuilding, steel and petrochemicals are losing their competitiveness.

It means the time has come for the Korean economy to redraw its industrial map to lessen its dependency on traditional industries and nurture new industries like the Internet of Things, artificial intelligence, electric cars and driverless cars, big data, financial technology and biotechnology.

As Yoo said, some of these sectors are “high-risk, high-return,” which means the government will have to map out meticulous plans and work closely with businesses.

It is obvious that government policy on the new industries should be different from the one that was needed to build industries such as shipbuilding, automobiles, electronics and steel.

Also important is removing and easing government regulations, and paving the way for small and medium-sized enterprises to assume a greater role in the development of the new industries.

In view of where the Korean economy stands now, an overhaul of its major industries is long overdue. Both the government and businesses should take bold and fast action to redraw the nation’s industrial landscape to maximize competitiveness.