Korean shipbuilders DSME and Hyundai Heavy Industries (HHI) are to scrap the practice of giving the children of workers their jobs when they retire.

Korea Economic Daily cited industry sources as saying DSME has demanded that unions remove a clause that gives offspring priority for jobs vacated by their parents.

HHI has also asked that perks like job succession and overseas training be removed from the deal.

Choi Gil-sun, chairman of Hyundai Heavy Industries, was cited as saying: "We must change rules and collective bargaining terms set in the good times in ways to accommodate the current hard time. Everything must change with the company's survival at the forefront."

Samsung Heavy Industries has no such rule.