April 23, 2024

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[THE INVESTOR] Choi Eun-young, former chairwoman of Hanjin Shipping, has decided to inject 10 billion won (US$8.99 million) from her private assets to ease Hanjin Shipping’s cargo crisis.

“Chairwoman Choi will secure 10 billion won by using her Eusu Holdings stocks as collateral to take out loans and provide (the funds) within a few days,” Eusu Holdings, said in a statement on Sept. 12. Choi now serves as a chairwoman of Eusu Holdings. 

Hanjin Shipping's former chairwoman Choi Eun-young appears before the prosecution in June.

Her decision came after a parliamentary hearing on South Korea’s shipbuilding and shipping crisis last week, where she was largely blamed for the poor management of Hanjin Shipping that led to the shipper’s collapse.

During Choi’s tenure from 2007 to 2014, the debt-equity ratio of Hanjin Shipping soared from 150 percent to 1,400 percent.

At the hearing, Choi said she feels responsible for the crisis as a former CEO and is considering ways to contribute back to society.

The 54-year-old is the wife of the late Cho Su-ho, the younger brother of Hanjin Group Chairman Cho Yang-ho. Choi took over management of South Korea’s largest container carrier after her husband suddenly died in 2006, while he was serving as chairman.

Hanjin Shipping on Sept. 1 entered court receivership after its creditors halted financing to the debt-ridden shipper.

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