With global logistics crisis caused by the collapse of the world’s largest container carrier Hanjin Shipping Co. lengthening, South Korean President Park Geun-hye on Tuesday openly criticized Hanjin Group Chairman Cho Yang-ho for improper management that has led the container carrier unit to be under the court-led program and would put the national economy in jeopardy.

Park did not directly mention the chairman’s name, but she blamed the management and major shareholders of Hanjin Group including Cho for the current turmoil, saying that such irresponsible and morally hazard corporate management should not be tolerated.

“Creditor banks’ support should come only after those with responsibility and authority in management put out excruciating voluntary efforts (to save the company) and pursue substantial improvement,” Park said at a Cabinet meeting at the Blue House on Tuesday. “Otherwise, creditor banks will struggle from insolvency, raising instability in the country’s overall economy and financial system and causing the government to pour taxpayers’ money to save the sinking company.”

President Park added that because Hanjin Shipping has not put out sufficient voluntary efforts to normalize its business, creditors suspended their fund support based on the principal of restructuring. She said that “any complacent thinking that the government would have no option but to help shippers if trading and the shipping industry freezes has dealt a heavy blow to importers and exporters.”

The Korean government pledged to step in to resolve the worldwide shipping havoc in the aftermath of Hanjin Shipping’s court receivership, but mainly let Hanjin Group to tackle the current crisis with its own resources, maintaining its hard-line stance on the shipping company.

Since the country’s largest container carrier filed for court protection early this month, many of Hanjin Shipping vessels remain stranded at sea because they were denied of call and unloading at ports. Customers of billions of dollars worth cargoes are fretting about whereabouts and state of their goods and ballooning losses from the delayed deliveries.

Industry observers noted that Park’s latest remarks make clear that the government would not waste taxpayers’ money to provide support to a company on the verge of bankruptcy due to moral laxity. They also noted that the remarks suggested that those responsible for the delays in goods would pay their price afterwards.

By Nam Gi-hyun

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]