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Gov't, ruling party open to providing 100 bln won to Hanjin Shipping

All Headlines 11:31 September 06, 2016

SEOUL, Sept. 6 (Yonhap) -- The South Korean government and the ruling Saenuri Party on Tuesday agreed to possibly provide financially troubled Hanjin Shipping Co. with a long-term loan worth 100 billion won (US$90 million), amid the mounting uncertainties about the future of the country's logistics industry.

The move came as the world's seventh-largest shipper was put under receivership last week.

Under the plan, the government and Saenuri said they can provide the money if Hanjin provides the necessary collateral.

"If Hanjin provides collateral, the government will actively take steps to offer a long-term and low-interest loan," a policy official from Saenuri said.

Following the filing of court receivership by the nation's leading container shipping line, many Hanjin-flagged container ships have been stranded at sea and ports due to asset seizure requests made by creditors.

The government said it will also make efforts to provide food and water to the stranded Hanjin ships, while requesting other countries refrain from seizing Hanjin's assets.

The subcontractors under Hanjin will also receive necessary support to maintain employment, Saenuri added.

Prime Minister Hwang Kyo-ahn said the country will implement various measures to help exporters ship their goods without delay.

"Amid the rising concerns over the economic effects following Hanjin Shipping's receivership, we need to make every effort to minimize the fallout and improve the overall health of our industries," the premier said during a Cabinet meeting Tuesday.

Gov't, ruling party open to providing 100 bln won to Hanjin Shipping - 1

colin@yna.co.kr
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