The local shipbuilding industry asked the government to provide substantial support to save local shipbuilders from continuing financial decline.

“In order to overcome the current crisis that the local shipbuilding industry faces, the government should immediately initialize action plans including heavy financial support,” Kim Oi-hyun, head of the Korea Offshore and Shipbuilding Association (KOHIPA), told reporters, last week, during a meeting with executives of the industry.

Kim is also the CEO of Hyundai Heavy Industries, the nation’s biggest shipyard. KOHIPA is a private association consisting of the nation’s leading shipbuilders.

Samsung Heavy Industries CEO Park Dae-young, Daewoo Shipbuilding & Marine Engineering (DSME) Vice President Lee Chul-sang, STX Offshore & Shipbuilding CEO Ryu Jung-hyung and Hanjin Heavy Industries CEO Choi Sung-moon were high-profile figures who attended the meeting.

The shipbuilding industry is experiencing a sense of urgency after being hit by decreased orders and falling profits.

The nation’s top three shipbuilders ― Hyundai, Samsung Heavy and DSME ― are in the doldrums because their attempts to diversify their portfolios to offset concerns over profit margins have been without any compensatory breakthroughs. Hyundai posted an operating loss of 1.1 trillion won ($1.07 billion) in the second quarter, its largest since it was founded in 1972.

The second quarter was catastrophic too for Samsung and DSME in terms of performance amid the continued bleak market. Samsung posted 262.3 billion won in operating profits in the second quarter, down 8.3 percent from a year earlier. The company also has conflicts between the management and union members, delaying negotiations on wages. DSME posted 102.5 billion won in operating profits, down 19.1 percent.

It is rare for an entire industry to officially request government support; however, officials say the plea is no surprise given the current market conditions.

The Hyundai CEO said that Korean shipbuilders are being forced to catch up with the industries of their chief rivals in China and Japan because they are improving on the back of support from their respective governments.

“When it comes to shipbuilding finance in other countries, China and Japan are providing appropriate financial support,” he said.

China and Japan poured $290 billion and $114 billion into the industry, he observed.

The executive also asked that the supports be focused on strengthening competitiveness in advanced shipbuilding technologies and value-added ships such as LNG carriers and drillships.

A fall in profits has reduced benefits for unionized workers at shipbuilders. Massive strikes are therefore expected, according to Kim.