The head of South Korea's financial watchdog says it will stick to the rules in restructuring STX Offshore and Shipbuilding Company.

Financial Services Commission(FSC) Chairman Choi Jong-ku reaffirmed the stance on Wednesday when asked by reporters whether the government will make the ailing shipbuilder file for court receivership if it cannot reach an internal agreement to accept a stringent self-rescue program. 

Choi also indicated the government will not wait too long to take action, saying any corporate restructuring needs to be dealt with swiftly and according to principle. 

The Korea Development Bank, the largest shareholder, said last month that it will file for court receivership if the company’s labor union does not consent to a self-restructuring plan by April ninth, including cutting labor costs of production workers by 75 percent.