Korea Line filed for a court receivership on Tuesday in the wake of losses caused by the global oversupply of bulk vessels and low freight rates.
The shipping line, South Korea's second-largest bulk-carrying line, suffered losses during the past two years after the shipping was hit by a global economic downturn.
Other local rivals such as STX Pan Ocean and Hanjin Shipping posted operating profits last year, but Korea Line continued to suffer losses as it had to pay lease fees on chartered ships.
By The Numbers: U.S. Foreign Trade
Korea Line operates 180 vessels, 140 of which are on long-term time charters.
The Baltic Dry Index, a measure of rates for vessels used to ship iron ore, coal and other commodities, currently hovers below the 1,400-point level, the lowest since February 2009.
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