The government has set mid-May as the deadline for struggling shipping companies to reach an agreement with ship owners on freight rates.
 
Financial Services Commission(FSC) Chairman Yim Jong-yong unveiled the deadline on Tuesday during a meeting on restructuring and boosting industrial competitiveness, saying that the government cannot wait forever for the negotiations to wrap up.
 
Yim said that Hanjin Shipping and Hyundai Merchant Marine are obligated to pay to shippers freight rates that are four to five times higher than international prices by 2026.
 
He said such rates are estimated to be over five trillion won combined, adding that a negotiation over freight rates is the key point of restructuring shipping industries. He said if negotiations fall through, efforts that follow would become meaningless.
 
He said if money is provided to Hyundai Merchant Marine without an agreement on freight rates, it would be equivalent to the government paying the shippers, calling it "pouring money into a bottomless pit."
 
Yim said a final proposal will be sent to the shippers within this month. He stressed that court receivership would be the only option for creditors if no agreement is reached on the freight rates.