Steel bars are seen inside one of Hyundai Steel's factories in this undated photo. Courtesy of Hyundai Steel

Major steelmakers in Korea have suspended the production of rebar in an apparent attempt to cope with the falling demand caused by a prolonged slowdown in the domestic construction industry.

According to industry officials, Thursday, distributors of rebar were informed that Dongkuk Steel will stop the production and shipment of the construction material from Jan. 24 to 31.

The decision came after the steelmaker began halting the operation of its rebar factory during the day last July, cutting the plant's output by about 35 percent and shifting production to nighttime hours. Operating from 10 p.m. to 8 a.m., the factory also changed its shift system in September.

Last month, Dongkuk Steel curtailed the rebar factory's output by 50 percent.

Industry officials expect Dongkuk to keep its rebar production low, as there are no signs of a recovery in the construction sector.

Earlier this month, Hyundai Steel decided to halt output at its rebar plant in Incheon from Jan. 13 to 27 and at another factory in Pohang, North Gyeongsang Province, from Jan. 22 to 31.

“More than half of rebar produced in our factories have been sent to construction sites,” a Hyundai Steel official said. “Due to the plummeting demand in the aftermath of a domestic construction industry slowdown, we decided to cut the output ahead of the Lunar New Year holidays.”

Last year, the steelmaker also reduced output by decreasing its capacity utilization rate. The company is expected to consider an additional reduction in output next month.

Korea Iron & Steel Association Chairman Chang In-hwa, who leads POSCO Group, acknowledged the crisis in the steelmaking industry, during the association's New Year's greeting event held for the first time in five years on Tuesday.

Industry Minister Ahn Duk-geun urged steelmakers to focus on creating new demand in the electric vehicle and renewable energy sectors, rather than relying on the construction industry and conventional manufacturing.

The government will also come up with a comprehensive plan to revitalize the country's steel industry in the first half of this year, amid lingering business challenges, including oversupply from China.