South Korea’s two largest shipping lines, which have been struggling to generate profit for years, have started to weigh down their parent business groups, industry sources said Tuesday.

Hanjin Shipping Co. and Hyundai Merchant Marines, hard hit by adverse market conditions, are trying to deal with chronic losses and a drop in their credit ratings but are not showing signs of improving anytime soon, industry watchers say.

Both Hanjin and Hyundai groups, which control these shipping companies, announced extensive self-help programs late last year, but have not been able to fully stabilize the situation with the injection of cash, seen as a stop-gap measure.

The poor showing by the two companies has even started to raise concerns about the liquidity flow of the parent conglomerates, which can exert a negative influence on the business community as a whole. (Yonhap)