South Korea’s trade minister on Tuesday voiced government support for market and creditor-led restructuring for troubled local firms.
“We encourage creditors to take the lead in carrying out restructuring processes based on the market system,” Trade Minister Joo Hyung-hwan said at a breakfast meeting with the chief executives of 10 large business groups.
Trade Minister Joo Hyung-hwan (Yonhap)
“For relatively healthier companies, we will map out legal systems to help them undertake a thorough overhaul in advance.”
Five industries, including shipbuilding and shipping, are subject to the pressing reform project, as they have been hit by protracted business slumps and massive losses.
Hanjin Shipping, South Korea’s biggest container carrier, has submitted its self-rescue plan to its creditors led by the state-run Korea Development Bank, while subcontractors of three leading shipyards led by Hyundai Heavy Industries are set to conduct massive layoffs due to a sharp drop in orders.
(khnews@heraldcorp.com)
