Downsizing sweeps Korean companies

South Korea’s automobile, semiconductor and petrochemical industries are expected to be the next targets for downsizing in 2009. While the Financial Supervisory Service (FSS) announced the downsizing of construction and shipbuilding businesses in early 2009, other industries might also be subject to restructuring. Hyundai Motor Co., the nation’s largest carmaker, shut down one major plant due to a lack of orders and is considering temporarily suspending operations. The petrochemical industry is also faced with downsizing due to excessive investments in the past recent years, weaker demand and weaker prices. (December 25, 2008)