[THE INVESTOR]  Korean Air, the largest shareholder of the cash-strapped Hanjin Shipping, was unable to decide on Sept. 18 on ways to fund the nation’s leading container shipping line.

An official at Korean Air said the company convened an emergency board meeting to discuss its plan to offer Hanjin Shipping 60 billion won (US$53.3 million) and help ease the cargo crisis triggered by Hanjin’s receivership. The meeting was scheduled at the last minute, the official added.




Earlier this month, Hanjin Group, the parent company of Hanjin Shipping, pledged to provide some 100 billion won for the ailing shipper, including 40 billion won in personal assets from Chairman Cho Yang-ho.

Cho has secured his share, but Korean Air’s board hasn’t reached a conclusion after several rounds of meetings, as it has demanded collateral for the cash injection.

The board wants to hold Hanjin Shipping’s terminal at Port of Long Beach in California as collateral, but the government has balked at the idea because it would require approval from another shareholder, MSC, and six foreign financial institutions from which Hanjin has already taken out collateral loans.

The Korean Air official said the company will seek to schedule another board meeting at the earliest date possible.

(theinvestor@heraldcorp.com)