Mass Layoffs Are Looming in South Korea

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  • Mass Layoffs Are Looming in South Korea - Bloomberg
    http://www.bloomberg.com/news/articles/2016-05-18/mass-layoffs-loom-in-south-korea-as-corporate-revamp-starts

    The number of layoffs is expected to balloon as the downsizing of major companies hits subcontractors. Ha Chang Min, an official at the subcontractors’ labor union for Hyundai Heavy, said the union expects about 10,000 workers to lose jobs this year as projects end.

    About 205,000 workers were employed in Korea’s shipbuilding industry as of the end of 2014, according to the Korea Offshore & Shipbuilding Association. Hana Financial Investment Co. analyst Lee Mi Seon wrote in a report this month that 10 percent to 15 percent of workers in the industry are estimated to lose their jobs. With average monthly income in the shipbuilding industry at about 4.5 million won ($3,800) last year — relatively higher than other industries — the layoffs could lead to a downturn in consumption and weigh on the regional economy, Lee wrote.