Joint effort to bail out Korea’s debt-laden shipper Hanjin

The South Korean government and the parent of Hanjin Shipping offered the world’s seventh-largest container group funds earlier to enable it to free up dozens of its ships stuck in harbours worldwide.

Many of them are full of goods being shipped to Western retailers to fill their shelves at Christmas.

State loans of 100 million won (£68 million) are set to be matched by 100 million won from Hanjin Group, including 40 million won loaned personally by Hanjin president Cho Yang-ho.

That could be enough to enable 68 of the group’s 141 ships currently unable to move because they cannot pay port fees or unloading bills. Hanjin Shipping filed for receivership last week and has applied for bankruptcy protection in more than 40 countries in a bid to prevent its ships being seized by creditors.

Paying the fees for containers to be unloaded would allow Hanjin’s clients to arrange alternative transport for their goods by sea or road. Korean Air, owned by Hanjin Group, has offered some customers its air freight services.