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The financially troubled Hanjin Shipping has succumbed to the prolonged depression in the shipping market as the South Korean carrier decided to file for court receivership.Following the company’s move, Korean Financial Services Commission (FSC) said that the government “will promote sales of Hanjin Shipping’s core assets to Hyundai Merchant Marine in a bid to maintain competitiveness of the shipping industry.”

Namely, Hanjin’s compatriot shipping line Hyundai Merchant Marine (HMM) will acquire the company’s core assets such as ships, overseas sales network and key work forces to retain Hanjin Shipping’s competitiveness as much as possible.

FSC added that Hanjin’s filing for court receivership “will have only limited impact on financial markets”as the event has been already reflected to a considerable extent in the process of restructuring.

In the stock market, Hanjin Shipping accounts for 0.03%, worth KRW 401 billion, of Kospi’s market capitalization. Its share price has declined 53.8% from KRW 3,540 per share on January 2 to KRW 1,635 on August 29, 2016.

Furthermore, the government aims to minimize spill-over impact into shipping and harbor industries which are also expected to suffer damage since Hanjin Shipping takes up a significant portion of Korea’s shipping sector. However, the government will minimize the damage by encouraging the state-run Korea Development Bank (KDB) and HMM to arrange additional ships to ensure cargoes are shipped on schedule.

In order to minimize potential damage on financial markets and subcontractors, the country’s financial organizations will closely monitor credit market interest movements and liquidity conditions of companies related to Hanjin Shipping.

The decision to file for court receivership comes after the company’s creditors, led by KDB, said theywould not provide additional financial support to Hanjin starting from September 4.