"Job security" reads the demand on the worker's headband

Creditors estimate that 52 large firms are "not viable" anymore, crushed by huge debts they took on during expansion plans that never got anywhere because of the Asian financial crisis three years ago.

Brink of collapse

Among the firms on the brink of collapse is Daewoo Motor, which recently was declared bankrupt, putting at risk the jobs of 17,000 employees.

Even more dramatic would be the collapse of Hyundai Engineering, a company that employs about 200,000 people. A profitable sister company, Hyundai Motors, has promised to help - for now.

In the past, banks or the government used to bail out struggling firms. But struggling to cope with their own huge debts, they have decided to cut the losses and force the closure of loss-making companies.

One of the firms forced out of business is the commercial vehicle division of Samsung Motors. After failing to sell it to an investor, the Seoul government decided to close the plant.

'All-out fight'

The leaders of the Federation of Korean Trade Unions (FKTU) say workers have so far made all the "sacrifices" for corporate restructuring, and demand that the government "should guarantee lives of workers laid off as a result of such reforms".

FKTU president Lee Nam-Sun said: "The government will face an all-out fight unless it accepts our demands to safeguard our rights and livelihood".

A week ago, a similar demonstration had ended in clashes with the police, leaving 300 workers and officers wounded.

This time round, the protesters were met by about 10,000 police officers, deployed to make sure the workers would not try to storm the National Assembly. The demonstration ended with just a few minor scuffles.

'Power' struggle

The marchers were joined by workers from the Korea Electric Power Corporation (Kepco), a state utility that could soon be broken up and sold to foreign investors.

Struggling with debts of about 30 trillion won ($26.3bn), the firm is in no position to finance an ambitious programme to nearly double current energy production by building 106 power plants.

The government hopes to split the firm into five units, that can be sold on to foreign investors with the necessary financial muscle.

Kepco workers, however, fear massive job losses and argue that a privatisation will result in soaring energy costs for consumers while money leaves the country.