The government and the ruling Saenuri Party said Tuesday they will consider holding off on taxing the subcontractors of financially troubled shipbuilders to help those companies better deal with the sweeping restructuring efforts under way.

During the meeting, the two sides agreed to give tax-related favors and waive mandatory insurance fees from the subcontractors of local shipbuilders as they have been struggling with belt-tightening measures to stay afloat amid the present industrywide slump.

"The Saenuri Party believes any fallout (from restructuring) should be kept as small as possible," the party said.

"Repercussions to the general public need to be limited by precisely calculating current and possible risks, and finding the cause behind the trouble the sector is facing."

The government added it will "actively" make efforts to grant special status to struggling companies next month by offering employment-related programs that can better support the livelihoods of workers.

Related to helping companies in trouble, the Fair Trade Commission said it will investigate the practice of shipbuilders using their influence to undermine the interests of subcontractors.

The regulatory watchdog is expected to check for excessive and unfair price-cutting. It will make a determined effort to bring order to the industry.

South Korea's Financial Service Commission also vowed to provide loans for shipbuilders facing hard times and make it possible for them to secure the necessary cash to build ships.

The country's labor authority, meanwhile, said it will make full-fledged efforts to settle possible disputes that may occur from inevitable restructuring moves.

The latest move comes after top officials from both the ruling and opposition parties visited the shipyard of Daewoo Shipbuilding & Marine Engineering Co. The visits prompted efforts to come up with countermeasures for those who may lose jobs as a result of cost cutting and streamlining measures.

 The country's top three shipyards suffered a combined operating loss of 8.5 trillion won ($7.17 billion) last year, due largely to increased costs stemming from a delay in the construction of offshore facilities and a worldwide dearth in demand. Some 5.5 trillion won of the losses came from Daewoo Shipbuilding. (Yonhap)