[THE INVESTOR] South Korean construction firms are preparing restructuring plans amid the decreasing number of global construction orders, according to company officials on Sept. 28.

POSCO E&C, a construction arm of steelmaker POSCO, plans to cut 500 jobs by the end of this year via a voluntary retirement program. In the first half of the year, the company reported a loss of 177.1 billion won (US$161.6 million).

POSCO E&C saw sales fall by more than 1 trillion won in the first six months of the year, compared with the same period last year.

POSCO is said to have considered merging POSCO E&C with another construction affiliate, POSCO Engineering, to boost efficiency. If the planned merger goes ahead, POSCO Engineering would cut about 600 jobs.

Daewoo Engineering & Construction, another major construction firm, plans to announce restructuring measures, including a voluntary retirement program, in November.

Samsung C&T, a unit of the country’s top conglomerate Samsung, has already conducted a voluntary retirement program, cutting its total workforce to 7,084 people in June from 7,952 people at the end of last year.

(theinvestor@heraldcorp.com)