Finance Minister Yoo Il-ho [Photo by Yoo Dae-gil = dbeorlf123@ajunews.com]
South Korea was put on full guard Wednesday to minimize an industrial shock after Hanjin Shipping, the country's largest container carrier, put itself under court receivership.
Finance Minister Yoo Il-ho told a meeting of economic officials that the government should do its best to ride out the "economic and industrial" fallout from the suspension of cargo delivery by Hanjin Shipping, the troubled arm of South Korea's Hanjin Group.
"Today, Hanjin Shipping decided to apply for court receivership after creditors agreed not to extend additional loans," he said, calling for all-out efforts to stabilize financial markets. From now, he said South Korea's shipping industry and sea cargo delivery would experience a "difficult" period for up to three months
Yoo, however, remained upbeat saying Hanjin Shipping's court receivership would not seriously affect financial markets because creditors have already set aside sufficient loss-loss provisions.
The Ministry of Oceans and Fisheries said that Hyundai Merchant & Marine, the country's second largest container carrier, would be used as a "shortstop" to keep the overseas sea transport route running.
Court receivership means Hanjin Shipping will be kicked out of a global shipping alliance, with its global service crumbling, vice maritime minister Yoon Hak-bae said. "As a result, a delay in the delivery of goods for exports and imports for two to three months is inevitable."
Aju News Lim Chang-won = cwlim34@ajunews.com
reporter
Park Sae-jin
swatchsjp@ajunews.com
