The intent is to minimize seizures of Hanjin Shipping’s vessels in foreign countries, the South Korean government said in a statement jointly released by several ministries, including the FSC.
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It was unclear if banks or the government might provide more financing to resolve the immediate crisis.
The sum is seen as falling far short of what is required to keep Hanjin Shipping operations running day-to-day with the company having KRW600bn of unpaid obligations such as charter hire at the end of August.
Seoul-listed Hyundai Merchant Marine – which could buy some of its rival’s assests – fell 3.6 percent.
Hanjin filed for bankruptcy in the USA and South Korea last week. “So those toys held up in container boxes will be able find their way to consumers”.
South Korea’s government has chose to provide embattled Hanjin Shipping with about 100 billion won ($91 million) or more of long-term, low interest funding, wire service Yonhap reported on Tuesday.
Hanjin Shipping, Korea’s largest shipping company, has filed for bankruptcy protection in the United States, with more than 70 of the company’s ships blocked, stranded and denied entry at major ports around the world and its creditors taking control of some of its assets.
Hanjin Group is a huge, family-dominated conglomerate and also includes Korean Air.
On Aug. 2, the Port of Prince Rupert announced in a press release, that DP world, the operator of Fairview Container Terminal and CN have arranged to move the Hanjin containers through the port. DP World requires pre-payment for handling the containers and CN is offering to move the goods from the port to various destinations in Canada and the U.S at a relevant rail charge.
On Monday Hanjin saw its shares plunge by 30% when trading opened but it quickly recovered those losses.
Many port authorities and port service providers are demanding cash to work on Hanjin ships, the Hanjin spokeswoman said.
A Hanjin spokesman was not immediately available to confirm the report.
Global demand and trade have suffered since the 2008 recession, but shipping lines continued to build more and larger vessels.
He promised Hanjin support in sorting out its problems.
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The chains are working to minimise delivery disruptions from cargo waiting to depart Asia, travelling on the ocean or arriving at ports, Jonathan Gold, vice president for supply chain and customs policy at the National Retail Federation trade group, said last week.
