Drama in container shipping continues this week with struggling Korean shipping line Hanjin Shipping applying for a creditorled restructuring plan on Friday.

Hanjin Group chairman Cho Yang-ho was reported by the Korea Times to have given up his management control and the board decided to apply for creditor-led restructuring plan. The government and main shareholder Korea Development Bank (KDB) had been calling for a restructuring of the company.

"Board directors of Hanjin Shipping decided to give up their management control for debt restructuring," said a KDB spokesman was quoted as saying.

Hanjin Shipping plans to submit an application to its creditors on Monday.

The Korean shipping line has KRW5.6trn ($4.93bn) in debt.