Korean Air to Provide $141 Million Loan to Hanjin

Korean Air to Provide $141 Million Loan to Hanjin

Hanjin container ship leaving the Port of Rotterdam in July 2013.

Hanjin Shipping will receive a loan of 150 billion South Korean won (about US$141.4 million) from Korean Air, a major shareholder of Hanjin Shipping Holdings.

The decision was made by the board of directors of Hanjin Shipping, Hanjin Shipping Holdings and Korean Air to overcome “liquidity problems,” according to Hanjin Shipping.

In return, Hanjin Shipping Holdings intends to pledge Hanjin Shipping shares to Korean Air.

Meanwhile, Hanjin Shipping said it will continue to work on various measures to improve liquidity and strengthen balance sheets. The troubled carrier reported a net loss of about 80.4 billion won in the second quarter of 2013 and a net loss of 34.8 billion won in the first quarter. Hanjin recently announced it is planning to leave the Port of Portland, Ore., to cut costs amid overcapacity concerns.