Seoul contemplates emergency second round of shipbuilding restructuring

The economic picture in South Korea is turning decidedly gloomy with the possibility that more than a million people could be out of work in the near future. According to data in February released by the National Statistical Office, unemployment grew to 3.9 percent, and the number of unemployed exceeded 920,000 people. With no large number of new orders since September, and a huge swathe of cancellations shipbuilding, which in 2007 and 2008 surpassed automobiles as Korea’s top export, is under enormous strain. The administration of Lee Myung-bak has already kicked off one round of stimulus and restructuring for the beleaguered sector, and observers say a second round of restructuring for the shipbuilding and construction industries and for the larger conglomerates is in the offing to stave off disasters that were last seen during the Asian Financial Crisis more than a decade ago.