Hanjin Shipping to be delisted from local bourse on Tuesday

Hanjin Shipping Co., once the country's top shipping line, is set to be delisted from the local bourse this week after being declared bankrupt earlier in the month, industry sources said Monday.

After making a market debut on Dec. 29, 2009, Hanjin Shipping rose to a record high of 38,694 won ($33.4) per share on Jan. 7, 2011, aided by upbeat earnings and a rosy outlook.

In 2010, its net profit reached 289 billion won on an operating income of 687 billion won. In that year, its sales reached 9.63 trillion won.

But the country's shipping firm suffered a loss of 824 billion won on an operating loss of 493 billion won in 2011, largely due to increased competition with foreign rivals and a slump in the global shipping sector.

After being declared bankrupt on Feb. 9, the country's bourse operator, the Korea Exchange, has allowed investors to unload Hanjin Shipping stocks. Hanjin Shipping was changing hands at 29 won as of 9:10 a.m., down 23.68 percent from the previous session's close.

Hanjin Shipping, previously the nation's largest shipping firm and the world's seventh largest, was put under court receivership in September last year, as its creditors, led by the KDB, rejected its self-rescue plan.

Hanjin Shipping and local shippers have been under financial strain due to falling freight rates stemming from an oversupply of ships and a protracted slump in the global economy. (Yonhap)