Hanjin chairman, Seoul to provide US$90 million to pay unpaid bills worldwide

Time:2016-09-07 Browse:78 Author:RISINGSUN
HANJIN Shipping`s owner will provide KRW100 billion (US$90 million) to contain disruptions to the global supply chain stemming from the container line`s bankruptcy court filing, reports Bloomberg News.

Hanjin group chairman Cho Yang Ho will supply KRW40 billion, the group said in an e-mailed statement. Separately, South Korea`s ruling Saenuri Party asked the government to offer about KRW100 billion in loans if Hanjin provides collateral.

South Korea`s Ministry of Oceans and Fisheries estimates Hanjin Shipping needs more than KWR600 billion to cover unpaid costs like fuel, including about KWR100 billion immediately for payments such as to port operators to unload cargo from stranded ships. 

"The government is trying to extinguish the most immediate fire" to help ease some supply-chain bottlenecks, Kim Tae Il, a research analyst at the Korea Maritime Institute in Busan. "So those toys held up in container boxes will be able find their way to consumers."