Jangyoung shipping finally goes bankrupt June 25

The Seoul District Bankruptcy Court adjudicated on June 25 that Jangyoung shipping is insolvent. Jangyoung has been under court receivership for the past 7 years since 1994.

According to the decision, efforts to keep the company alive by Jangyoung shipping officials through deals with creditors have been for naught. All remaining employees will be out of work within a month.

Established in 1969, Jangyoung shipping operated between Korea and Japan during the process of maritime industry restructuring in 1984 and finally would disappear into history after 7 years of court receivership.

On June 25, nearly 30 employees, including 15 in Seoul and 12 in Pusan, went to work and discussed how to prepare for the end. The Seoul District Court appointed lawyer Kim Sang-ho as a trustee for the bankruptcy process.

Since Jangyoung shipping went into court receivership in July 1994, according to the Act, it suffered from financial difficulties due to sales slumps, heavy investment in port terminal equipment, and severe competitiveness in trades. Coming this early May, it stopped its Korea and Japan service.

"We did our best to compromise with creditors, however, the main creditor bank, the Korea Industrial Bank didn't allow it," said an official at Jangyoung Shipping.

Even if the official debt only amounts to around 54 billion won, the real debt is known to have snowballed under the weight of relatively high interest rates.