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FSC Urges Hanjin Group to Clean Up Mess

Written: 2016-09-05 14:39:57Updated: 2016-09-06 14:39:34

Anchor: Financial authorities have reiterated that Hanjin Group must assume responsibility for the disruptions in logistics resulting from its shipper filing for court receivership. The shipping company, meanwhile, has also requested for bankruptcy protection in the United States.
Our Bae Joo-yon has more.
 
Report: On the sixth day since Hanjin Shipping filed for court receivership, operations have been disrupted for a total of 79 vessels.

As port crane operators refuse to unload containers and fuel providers decline to sell oil for the Hanjin-operated ships, the court believes that at least 200 billion won, or about 180 million dollars should be injected. 

To ride out the emergency, Financial Services Commission(FSC) Chairman Yim Jong-yong pressed Hanjin Group to clean up the mess left behind by its troubled shipping division.

Speaking to reporters on Monday, the watchdog chief said that the conglomerate group must resolve the "chaos" in the logistics sector that followed Hanjin Shipping's filing for court receivership in South Korea last Wednesday.

Yim said that Hanjin Shipping holds the responsibility to safely transport cargo, urging that Hanjin Group and its key shareholders must assume their social duties and actively tackle the problem.
 
He then accused the shipping company for only seeking to maintain regular business operations and failing to cooperate with the government in coming up with contingency plans.
 
However, the FSC chief revealed that tax money will be provided in loans to stabilize small trading firms and others hit hard by delays in cargo transport.
 
A total of 457 companies had contracts with the troubled shipping line. Among them, over 400 are small companies and an average of around 70 million won, or over 63-thousand dollars, are at stake for each business.
 
Meanwhile, Hanjin Shipping filed for bankruptcy protection in the U.S. Bankruptcy Court last Friday. If the court accepts the request, the shipper's creditors will not be able to seize company assets in the U.S. or pursue lawsuits.
Bae Joo-yon, KBS World Radio News.

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