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Korean Air rules out more aid to Hanjin Shipping

[THE INVESTOR] Korean Air Lines, the largest shareholder of Hanjin Shipping, on Oct. 25 made it clear that there will be no additional aid to the cash-strapped shipper that has been put under court receivership since early this month.

“We expect no more impact from funding to Hanjin Shipping,” a Korean Air executive said during a conference call on the day.

“We will continue efforts to improve our financial structure, including issuing additional perpetual bonds.”


Hanjin Group Chairman Cho Yang-ho
Hanjin Group Chairman Cho Yang-ho


The remarks came after the nation’s largest flag carrier reported its record quarterly earnings in the July-September period. The company said its third-quarter operating profit surged 34.9 percent to 447.6 billion won (US$393 million) compared to a year ago.

It said the losses from its funding to Hanjin Shipping, worth a combined 825.1 billion won, have already been reflected in its earnings in the first to third quarters this year.

By Lee Ji-yoon (jylee@heraldcorp.com)

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