South Korea’s Hanjin Group agreed on Tuesday to cough up additional rescue fund of up to 100 billion won ($90.5 million) that would include 40 billion won out of the pocket of group chairman Cho Yang-ho to normalize vessel operation and cargo delivers that had been disrupted after Hanjin Shipping filed for court receivership last week.

The looming logistics crisis with hundreds of cargoes stranded at sea and ports after vessels of the bankrupt shipper had been denied of entries and leaves from ports around the world has raised concerns for the export-reliant economy.

The government and ruling party held emergency meeting earlier Tuesday, pledging fresh loans of up to 100 billion won to Hanjin Shipping in favorable long-term maturity and low interest rate terms if the parent group provides enough collateral for the new loans. Hanjin Shipping went under court protection after creditors decided against any more relief for the shipper.

According to the group rescue plan, the group will raise 60 billion won backed by overseas shipping terminals and other assets and another 40 billion from the group chairman.

The group that has air flag carrier Korean Air Lines will mobilize all transportation units to help out in cargo deliveries. The cargos unloaded at the port in Busan have been shipped across the country via roads and railways, and Korea Air will increase cargo flights to handle emergency deliveries.

Separately, government offices including the foreign ministry, oceans ministry, and finance ministry, joined forces to secure stay order for Hanjin Shipping vessel calls and unloading at ports around the world.

The government will also give special attention and subsidies to help the coastal areas and services suppliers affiliated with Hanjin Shipping.

By Park Yong-beom

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