Fears surrounding the impact of shipping and shipbuilding job losses on the South Korean economy remain despite strong figures for the second quarter.
Firmer domestic consumption and investment drove a 0.7% rise in second quarter GDP in Asia’s fourth largest economy, Reuters reports.
However, with thousands of jobs set to be cut following restructuring efforts at shipyards and shipping lines, analysts believe the growth will be difficult to sustain.
"The challenges that lie ahead for the South Korean economy in terms of the scope of corporate debt restructuring in a low-trade environment (and with monetary policy nearing its lower limit) are formidable," ANZ said in a note, according to Reuters.
Yesterday it emerged Seoul was planning to order 61 ships at its struggling domestic shipyards. Further details are expected to be announced on Friday.
