Unionized workers of Hyundai Heavy Industries endorsed a strike over wage and benefits, threatening to halt production at the world’s largest shipbuilder for the first time in 20 years. Shares of Hyundai Heavy slumped 3.4% in recent trading. The KOSPI Index was down 0.1%. Its competitor Samsung Heavy Industries (010140.KS) fell 2.7%.
Korean shipbuilders are in a slump this year from weak global demand and falling ship prices. Hyundai Heavy has lost 60% of its market value and trades at only 0.4 times book.