Hanjin Shipping shares rally 28 percent after Korean Air approves lending

Hanjin Shipping <117930.KS> shares surged as much as 28 percent in morning trade on Thursday after the board of Korean Air Lines <003490.KS>, its biggest shareholder, approved lending 60 billion won ($53.96 million) to the troubled container carrier.

Shares of Korean Air climbed 5 percent.

Korean Air's board decided late on Wednesday to provide the funds to help offload cargo that has been stranded on Hanjin ships, using Hanjin's accounts receivable as collateral, a spokesman for the airline said.

(Reporting by Hyunjoo Jin; Editing by Paul Tait)