Korea Line's parent company, Samra Midas Group (SM Group), will create a separate company called SM Lines that will operate Hanjin's liner business between the Far East and United States.

Korea Line, a major bulk carrier, will not take over Hanjin Shipping's service, but instead, its parent company will operate it independently, a source said.

The source told American Shipper that Korea Line's parent company, Samra Midas Group (SM Group), will create a separate company called SM Lines that will operate the liner business between the Far East and United States.

Yonhap News Agency said that Korea Line's board members voted against taking over the transpacific liner business of Hanjin.

"Stakeholders were reportedly against the proposal, citing that Korea Line does not have experience in the container shipping businesses, and that a general industry wide slump may cause a cash shortage," Yonhap reported.