South Korea's largest two shipyards – Hyundai Heavy Industries (HHI) and Samsung Heavy Industries (SHI) – have had their restructuring plans approved by creditors.

HHI's KRW3.5trn (US$2.9bn) plans include selling stocks and non-core assets and cutting its workforce, which will reduce its debt-to-equity ratio to below 100% by 2018.

SHI's US$1.2bn plans are similar albeit on a smaller scale.

Daewoo Shipbuilding & Marine Engineering (DSME), South Korea's third largest yard, is also going through a painful restructuring.

Earlier this week, it emerged that the combined debts of the nation's nine largest yards had soared above KRW100trn.