Yoo Il Ho, Finance Minister for South Korea has called for an industry restructure as a solution to the cash flow decline of companies, which has been caused by a weak market, according to Bloomberg.
Mr Il Ho added that the shipbuilding industry and cargo carriers would also need to be restructured.
Shin Ji Yoon, Analyst at KTB Securities Co. in Seoul, South Korea, said: “Investors are concerned about the government’s plan to restructure in the industry. What’s more concerning is that there are no details about what those measures will be.”
Previous news by PTI reported on feasibility of Hanjin and Hyundai Merchant Marine (HMM) merging their companies, which would be a distinct possibility and enable the carriers to survive.
HMM previously announced that it would be opting for self-rescue measures from its creditors, in collaboration with the Korea Development Bank, in a bid to restore its financial situation.
Global carriers are looking for ways to recover in a turbulent industry, with Maersk Line leading the way for increasing rates and cutting capacity on key routes.