Latest Stories

Hanjin threatens to cut down operations


SUBIC BAY FREEPORT—Thousands of workers of a Korean shipbuilder may lose their jobs because of the European financial crisis and the government’s failure to make good on its commitment to provide power incentives, a top official of the company said.

Taek Yun Yoo, general manager of the Hanjin Heavy Industries & Construction Co. Ltd.-Philippines Inc. (HHIC-Philippines), said the combination of a dearth of orders for huge ships in the international market and the Aquino administration’s failure to honor commitments made by the Philippine government to the Korean shipbuilder had “brought us to this situation where we may have to lose thousands of workers this year because our expenses have gone up (substantially).”

“We’ve been promised these incentives with other multinational companies by the previous administration, and that’s the only reason we chose to locate in this country instead of somewhere else,” Yoo said.

Under the administration of former President Arroyo, Hanjin, through subsidiary Phoenix Semiconductors, was given incentives under the 10-year Industry Competitiveness Fund (ICF) program.

The government granted the company and others, including Texas Instruments and Samsung, ICF subsidies to convince them to invest in the country.

In the case of Hanjin, under Executive Order No. 701 issued by Ms. Arroyo in 2008, National Power Corp. and National Transmission Corp. (Transco) provided discounted generation and transmission rates of $0.0491 per kilowatt-hour (kWh) within the first six years of its operations and $0.0600 per kWh from the seventh year until the 10th year of its shipyards in Subic and Mindanao.

“Should the prevailing industrial retail rates decrease to a level lower than the discounted rates agreed and granted by Napocor and Transco, the rates shall be correspondingly decreased to match the prevailing rates,” EO 701 provided.

Yoo said the discounted rate was granted by the Arroyo administration through Power Sector Assets and Liabilities Management Corp., with the Sual power plant in Pangasinan designated as the Korean shipbuilder’s power supplier.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Business , electricity , Hanjin , incentives , jobs , Philippine government , Shipbuilding , South Korea

  • kinutil

    Sana mapagtuunan ng pansin ng ating pamahalaan ang hinaing ng HANJIN COMPANY upang hindi maulit ang nangyari noon na pinaalis ang base ng AMERICA at 60,000 thousand ang nawalan ng trabaho at ang nag paalis walang pakialam sa mga nawalan ng trabaho at sa mga anak na natigil sa pag-aaral at sa nangyari ang CPPNPA ang nakinabang marami silang nakumbinsi.At ngayon dahil sa hindi magandang balita ng HANJIN naka ngiting ASO na naman ang CPPNPA. Salamat sa pagabalik ng USA malaki ang maitutulong nila sa siguridad ng bansang PILIPINAS. WELCOME  U.S.A. TO OUR HOME LAND PHILIPPINES.

  • http://joboni96.myopenid.com/ joboni96

    if it comes to pass
    employ the workers
    in the naval shipyard

    repairing all warships
    to defend against intsik switik

    to guard against u.s. imperialist recolonization

  • Jun Tuazon

    kaya lalong di na mag iinvest ang mga foreigner sa pinas dahil sa gawaing di mabuti ni abnoy noong ilabas yng unang barko ng Hanjin siya ang nag claim ng credit kesyo sa govt niya malalaking barko ang ginagawa hindi bankang papel a dig at arroyo now the truth is out that he’s got nothing to do w/ all of these big investments but he will drive them all away like Ford and other big businesses who by the way employes a lot of locals.

  • http://profile.yahoo.com/FFSZ7TIZZG47FYQFAZFIGYXKPM Pers

    ito ang tunay na matuwid na daan. palpak

  • http://profile.yahoo.com/WJTL4CMAGCQHAOOT6SO7AEHJJU Black

    Airport nga lang di pa maisaayos magaambisyon pa kayo ng NPP tsk tsk.. Sa dami ng kriminal na di naman mahuli huli, siguradong isang malaking bullseye to.

  • http://www.facebook.com/bojmd Romero Dangoy

    Thats why we need Nuclear Energy to bring the cost down

  • akramgolteb

    Tuta kasi ng maginang Aquino si Aboitiz. Halos lahat ng mga power plants na hawak ng Napocor pagaari ni Aboitiz. Kung bibigyan ng diskwento kahit na anong pabrika sa kuryente, bababa ang kikitain ng mga Aboitiz.

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • What Went Before: Malacañang allies alleged involvement in pork scam
  • Timeline: Napoles tell-all
  • 12 senators on Napoles ‘pork’ list, says Lacson
  • Napoles surgery in Makati hospital successful
  • Save the queen? Aide takes fall for Enrile, Gigi Reyes
  • Sports

  • Mixers trim Aces; Painters repulse Bolts
  • Donaire junks Garcia as coach, taps father
  • ’Bye Ginebra: No heavy heart this time
  • UAAP board tackles new rules
  • Baguio climb to decide Le Tour de Filipinas
  • Lifestyle

  • The best flavors of summer in one bite, and more
  • Homemade yogurt, bread blended with pizza, even ramen
  • Visiting chefs from Denmark get creative with ‘ube,’ ‘ buko,’ ‘calamansi,’ mangoes
  • Salted baked potatoes
  • A first in a mall: Authentic Greek yogurt–made fresh in front of diners
  • Entertainment

  • Return of ‘Ibong Adarna’
  • Practical Phytos plans his future
  • In love … with acting
  • From prison to the peak of success
  • ‘Asedillo’ location thrives
  • Business

  • This time, BIR goes after florists
  • Philippine Airlines to stop shipment of shark fins
  • PH banks not ready for Asean integration
  • Stocks down on profit-taking
  • Banks allowed to use ‘cloud’
  • Technology

  • ‘Unlimited’ Internet promos not really limitless; lawmakers call for probe
  • Viber releases new design for iPhone, comes to Blackberry 10 for the first time
  • Engineers create a world of difference
  • Bam Aquino becomes Master Splinter’s son after Wiki hack
  • Mark Caguioa lambasts Ginebra teammates on Twitter
  • Opinion

  • Editorial cartoon, April 24, 2014
  • Talking to Janet
  • Respite
  • Bucket list
  • JPII in 1981: walking a tightrope
  • Global Nation

  • PH seeks ‘clearer assurance’ from US
  • China and rivals sign naval pact to ease maritime tensions
  • What Went Before: Manila bus hostage crisis
  • Obama arrives in Tokyo, first stop of 4-nation tour
  • Believe it or not: Filipinos love US more than Yanks
  • Marketplace