Gov't to inject W100 billion into troubled Hanjin Shipping
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The government plans to supply Hanjin Shipping with 100 billion won as soon as Hanjin Group provides sufficient security. / Yonhap
By Lee Han-soo, Park Si-soo
The government and ruling Saenuri Party have decided to inject 100 billion won ($90 million) into cash-strapped Hanjin Shipping to ensure docking and unloading of its nearly 80 container ships whose port access has been denied worldwide in the wake of the company’s collapse.
“The government will immediately send the money to the company as soon as Hanjin Group, owned by Cho Yang-ho, provides sufficient mortgage,” said Rep. Kim Gwang-lim, chief policymaker of the Saenuri Party, Tuesday.
As of Monday, 79 Hanjin vessels ―including 61 container ships and 18 bulk carriers ― have been denied port access, according to the maritime ministry.
“Of the 145 ships owned by Hanjin Shipping, 87 are stranded in mid-ocean, unable to dock or unload,” Kim said. “If we include the ships that have departed for their destinations, the number goes up to 97.”
It is estimated that more than 600 billion won will be required to settle the crisis, according to the government.
Meanwhile, the Ministry of Foreign Affairs will team with the Ministry of Oceans and Fisheries and the Ministry of Strategy and Finance to keep Hanjin vessels from being seized at overseas ports.
A creditor has already seized a Hanjin vessel in Singapore. And at least three U.S. firms have launched legal action against Hanjin to seize vessels and other assets over unpaid bills.
The government also is considering designating Busan, Korea’s biggest port city, and its surrounding areas a “region with an employment crisis” if the situation worsens.