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Gov't vows to limit impact from Hanjin Shipping crisis

All Headlines 11:22 August 31, 2016

SEOUL, Aug. 31 (Yonhap) -- South Korea's financial authorities on Wednesday assured the market that they will take timely measures against potential fallout from the crisis surrounding the nation's largest shipping line.

"(We) will cope comprehensively with the situation to prevent turmoil in the financial market," Jeong Eun-bo, vice chairman of the Financial Services Commission (FSC), said as he presided over an emergency meeting of related government agencies.

The remark came after Hanjin Shipping Co., the world's seventh-largest container carrier, decided to file for court receivership later on Wednesday at a board meeting. On Tuesday, its creditors decided not to provide additional support for the troubled firm.

Concerns have grown about possible negative effects on the nation's financial and shipping industries.

Jeong said the authorities will keep close tabs on changes in the bond market and the related firms' capital situation, while seeking ways to help contractors of Hanjin Shipping.

In general, however, its fate is likely to have a limited impact on the local financial market, he added.


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