Hanjin decides 70.8 billion won debt guarantee for subsidiary Incheon Global Container Terminal for port construction contract bond
Hanjin decided to provide a joint guarantee of 70.8 billion won for its affiliate Incheon Global Container Terminal IGCT to obtain a contract performance bond from Seoul Guarantee Insurance for the Incheon New Port 1-2 phase container terminal project.
The guarantee amount equals 130% of the debt of 54.4 billion won and represents 4.65% of Hanjin's equity of 1.523 trillion won. The guarantee period runs from November 13 2024 to January 29 2028.
IGCT is a newly established company with no financial data available. The board approved the decision on July 7 2026 with all five outside directors present. This brings Hanjin's total guarantee balance to 87.7 billion won.
[AI Summary]This debt guarantee supports a subsidiary's port infrastructure project without immediate dilution or capital outflow but creates a contingent liability. The guarantee is moderate relative to equity and the counterparty Seoul Guarantee Insurance is credible resulting in low financial risk.