Korean Air approves loan for Hanjin Shipping

[SEOUL] Korean Air Lines, the biggest shareholder of Hanjin Shipping, has approved a plan to provide a loan of 60 billion won (S$73.9 million) to the troubled shipper.

The support will be offered on condition of securing Hanjin Shipping's Long Beach Terminal as collateral, Korean Air said.

Hanjin Group has pledged to raise a total of 100 billion won in funds to help rescue cargo that is stranded at sea following the failure of Hanjin Shipping, the world's seventh-largest container carrier.

Out of the 100 billion won, Hanjin Group Chairman Cho Yang-ho will raise 40 billion won from private funds next week.

REUTERS