The amount raised will be used to repay loans. The company aims to repay KRW 1.25tr and KRW 1.08tr of loans in 2014 and 2015 respectively. Korean Air, which is an affiliate of Hanjin Shipping, had to step in and made a commitment of providing KRW 100bn as financial aid to the group to ease its liquidity pressure which is in addition to KRW 150bn money paid in October. Korean Air is further willing to help Hanjin with a promise to buy KRW 400 bn of new shares that Hanjin plans to sell next year. To avoid a liquidity crisis, Hanjin has been disposing of some of its assets including a partial sale of its bulk business through a new joint venture with Hahn & Company. The agreement will secure KRW 300bn of cash for Hanjin as well as transfer debts of KRW 1.4tr to the joint venture, enabling it to reduce its debt and improve balance sheets with this additional liquidity.