Gov’t, Saenuri mull over delaying taxes for shipbuilder subcontractors

The government and the ruling Saenuri Party said Tuesday they will consider delaying taxing the subcontractors of financially troubled shipbuilders to help those companies better deal with the sweeping restructuring efforts underway.

During the meeting, the two sides agreed to delay levying taxes and waive mandatory insurance fees from the subcontractors of local shipbuilders as they have been struggling with belt-tightening measures to stay afloat amid the present industrywide slump.

On Monday, top officials from both the ruling and opposition parties visited the shipyard of Daewoo Shipbuilding & Marine Engineering Co., promoting efforts to come up with countermeasures for those who may lose jobs following the restructuring move.

The country’s top three shipyards suffered a combined operating loss of 8.5 trillion won (US$7.17 billion) last year, due largely to increased costs stemming from a delay in the construction of offshore facilities and a worldwide dearth in demand. Some 5.5 trillion won of the losses came from Daewoo Shipbuilding.
Source: Yonhap