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Gov’t to seek swift corporate restructuring

April 18, 2016
Finance Minister Yoo Il-ho

Finance Minister Yoo Il-ho

WASHINGTON, April 17 (Yonhap) — South Korea’s top economic policymaker said the government will speed up its push for corporate restructuring this year, especially in the shipbuilding and shipping sectors.

Finance Minister Yoo Il-ho underscored the urgency of restructuring in such troubled industries, saying the government won’t sit back.

“We can’t defer the restructuring of those oversupplied and susceptible industries anymore. We should hurry up,” he told reporters Friday, while visiting Washington for a G-20 forum. “Let me handle the issue in person.”

Prime targets will likely include beleaguered shipbuilding and shipping firms, such as Hyundai Merchant Marine Co. and Hanjin Shipping Co., in case their self-restructuring efforts end in failure.

“The government has no other choice but to take action if shipping firms’ restructuring is not carried out as planned,” Yoo said.

He stressed the importance of timing following last week’s general elections and ahead of the presidential polls late next year.

The remainder of this year is opportune, in that sense, as the current administration is relatively free from political burdens, industry watchers agreed.