The Korea Development Bank(KDB) has decided to provide as much as 50 billion won, or over 45 million U.S. dollars, to help ease the logistical crisis stemming from Hanjin Shipping's court receivership.
Earlier, Hanjin Group and its former and incumbent major shareholders finalized an aid package of 110 billion won for the ailing shipper.
With KDB's assistance, Hanjin Shipping is now expected to accelerate efforts to unload cargo from its container ships which have been stranded at overseas ports.
According to Hanjin's creditors on Thursday, KDB, the firm's main creditor, finalized its decision to provide up to 50 billion won in aid. The bank plans to extend the credit line for the shipper to offer funds, if necessary.
This means the 110 billion won provided by Hanjin Group should be tapped first to ease the shipper's logistical problems after which KDB will be willing to extend its loans, if necessary, as a reserve source of funding.