Unionised workers at South Korea's Hyundai Heavy Industries have halted a vote on a new wage deal following the news that the yard could buy rival DSME.

The labour union held an emergency meeting on Thursday after putting off the ballot on 2019's settlement, Aju News reported.

Workers have been worried about consolidation among the big three yards causing redundancies.

Korea Development Bank (KDB) has signed a conditional deal to sell its majority stake in DSME to HHI, which would see the world's two biggest shipbuilders combine.

But KDB has also approached Samsung Heavy Industries about a potential investment in DSME.