Hanjin divides into separate holding and operating companies

KOREA's Hanjin Shipping has announced it will divide into two separate entities: Hanjin Shipping Holdings Co, Ltd, a holding company and Hanjin Shipping Co, Ltd, an operating company.

Thus, the former Hanjin Shipping will become Hanjin Shipping Holdings focusing on managing subsidiaries and Hanjin Shipping Co, which will run the shipping business, said the company.

"The transformation into a holding company will accommodate Hanjin Shipping with the tools necessary to ensure an independent business operation and corporate transparency," said a company statement.

The change allows subsidiaries to focus on core business, and the separation of the investment and corporate governance function from the main shipping business will strengthen risk management," Hanjin said.

Hanjin Shipping operates 60 liner and tramp services worldwide moving more than 100 million tons of cargo a year in a fleet of 200 containerships, bulk and LNG carriers. The company, valued at KRW6 trillion (US$4.9 billion), earns KRW9 trillion annually through 200 overseas branch offices and 30 local corporations, which take in 90 per cent of its overseas revenue.

(Source: www.schednet.com)