Hanjin Group Raises $90 Million Including $35.5 Million from Its Chairman Private Property

Hanjin Group has decided to arrange 100 billion won (US$90 million) on its own, including 40 billion won (US$35.5 million) from its Chairman Cho Yang-ho’s private property, so as to resolve logistics disruptions caused by Hanjin Shipping’s court receivership.

Hanjin Group said on September 6 at its emergency meeting that it would offer its ailing affiliate 60 billion (US$54 million) won using its stake in a terminal at Port of Long Beach and loans as collateral, and raise a total of 100 billion won on its own, including 40 billion injected from its chairman’s personal money.

These efforts are made to help bring the unloading of cargo from containers into normal. The group said, “Even if Hanjin Shipping is already under court receivership, the group has made such a decision to minimize the damage to export and import businesses.”

Hanjin group plans to take aggressive actions in providing assistance to logistics operations and transportation through its affiliates to alleviate logistics crisis, along with the financial support.

Hanjin has set up an emergency task force team to consider measures to immediately unload cargos from vessels and transport cargos by air as an alternative way of easing the supply crunch. It has provided support in unloading cargo corresponding to a capacity of 5,000 TEUs from a Hanjin Shipping vessel that docked at Hanjin container terminal at the Busan Newport. The unloaded cargo has been transported by railway or land to the Uiwang inland container depot as usual. In addition, the company makes aggressive efforts to ensure that logistics disruptions can be contained on minimal levels by providing shippers with information on freight location in real time.