[HANJIN CRISIS] FSC chief rules out Hanjin-Hyundai merger

By 안성미

Published : Aug. 30, 2016 - 17:34

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[THE INVESTOR] Financial Services Commission Chairman Yim Jong-yong on Aug. 30 ruled out the possible merger between ailing shippers Hanjin Shipping and Hyundai Merchant Marine.

“In current circumstances, (the merger) is not possible,” Yim told reporters at an event hosted by Korea Financial Telecommunications & Clearings Institute.

“While a merger can create a competitive company, it can also worsen when a weak and strong (company) mix together. The creditors already considered the possibility of a merger but decided that it was unrealistic.”

FSS Chairman Yin Jong-yong

Earlier in June, Yim hinted at the possibility of merging two shippers should they successfully normalize their business.

On Aug. 30, creditors of Hanjin Shipping unanimously decided to halt supporting South Korea’s largest container carrier, saying its latest self-rescue plan did not fulfill the requirements. With the halted financing, the shipper is left with no option but to file for court receivership.

By Ahn Sung-mi (sahn@heraldcorp.com)

[HANJIN CRISIS] FSC chief rules out Hanjin-Hyundai merger

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