[THE INVESTOR] South Korea said on Sept. 5 that it will extend financial support for the contractors of Hanjin Shipping which has filed for court receivership.

The government plans to use funds from the newly allocated supplementary budgets to help those firms, especially small and medium-sized ones with relatively good financial health but troubled by the Hanjin crisis, according to Yim Jong-yong, chairman of the Financial Services Commission.

Hanjin Shipping has a total of 457 contractors here and their combined outstanding receivables reach 64 billion won (US$57 million).

South Korea’s two policy lenders -- the Korea Development Bank and the Industrial Bank of Korea -- will roll over maturing loans to some of the companies and provide special credit guarantee, Yim told reporters.

(theinvestor@heraldcorp.com)