BOK chief calls for consistent corporate restructuring

The head of South Korea's central bank called Wednesday for consistent corporate restructuring in financially troubled industries to help put them back on track.

"The government should consistently push forward restructuring in close consultation with subjected industries according to market rules," Bank of Korea Governor Lee Ju-yeol said in a meeting with several economists at the bank's headquarters in central Seoul.

The comments come as the shipping, shipbuilding, steel and petrochemical industries -- key pillars of the South Korean economy -- have been struggling with declining orders and margins since the 2008 financial crisis. They have cut costs and jobs to survive oversupply and lower margins.

Lee said he met with executives in the key industries during his trip to Ulsan and Pohang, the two major industrial cities located in the country's southeastern areas, earlier this week.

Ulsan is home to Hyundai Heavy Industries Co., the world's largest shipbuilder by sales, and Hyundai Motor Co., the country's top carmaker by sales. POSCO, South Korea's largest steelmaker by output, is based in Pohang.

The country's leading shipbuilders have been put under restructuring to regain financial health, though it is likely to take some time and costs.

Lee also said there are concerns whether the economy can continue to grow, citing uncertainties such as corporate restructuring and the possibility of a slowdown in the construction industry which was boosted by government stimulus packages in past years.

On Tuesday, the BOK said the country's economy grew at a slower pace in the third quarter than three months earlier, on decreased demand and facility investments.

In the July-September period, the country's gross domestic product increased 0.7 percent from the previous quarter, decelerating from a 0.8-percent on-quarter expansion three months earlier, according to preliminary BOK data. (Yonhap)