Mass Layoffs Are Looming in South Korea
- Analyst forecasts 20,000-30,000 job losses at shipbuilders
- Jobless claims in industrial Ulsan jump in first quarter
An employee welds components of a ship at the Hyundai Heavy Industries Co. shipyard in Ulsan.
Photographer: SeongJoon Cho/BloombergThe South Korean government’s push to restructure debt-laden companies is set to cost tens of thousands of workers their jobs in an economy where social security is limited and a rigid labor market reduces the likelihood of getting rehired in a full-time position.
Many of the layoffs will be in industrial hubs along the southeast coastline, where shipyards and ports dominate the landscape. These heavy industries, which helped propel South Korea’s growth in previous decades, have seen losses amid a slowdown in global growth, overcapacity and rising competition from China. As a condition of financial support, creditor banks and the government are pushing companies to cut back on staff and sell unprofitable assets.