FSC chairman urges Hanjin Group to take responsibility for logistics chaos

[THE INVESTOR] South Korea’s top financial regulator has called on Hanjin Group to resolve chaos in logistics stemming from its shipping unit’s decision to seek bankruptcy protection last week.

“Hanjin Group and the large shareholders should step up to tackle the issue and take social responsibility,” said Yim Jong-yong, chairman of Financial Services Commission on Sept. 5.

Hanjin Shipping, the country’s largest container line, filed for court receivership on Aug. 31 a day after its credit lenders withdrew financial support for the debt-laden firm. 

“Hanjin Shipping is the one that has responsibility to deliver logistics safely. And Hanjin Group is still the parent of Hanjin Shipping,” Yim said.

His remarks came as some major retailers scrambled to work out contingency plans to get their merchandise to stores as the bankruptcy of the Hanjin Shipping has thrown ports and retailers around the world into chaos.

Yim also urged Hanjin Group Chairman Cho Yang-ho to tackle the ripple effects throughout the global supply chain.

“Cho previously said that his group would make every effort for rehabilitation of the firm (Hanjin Shipping) and the recovery of shipping industry,” the chief said.

By Park Han-na (hnpark@heraldcorp.com)