South Korean shipping company, Korea Line Corp, is understood to have been picked as the preferred bidder for some assets of the collapsed Hanjin Shipping Co., the world's seventh-largest container shipper.

Korea Line Corp beat its larger rival Hyundai Merchant Marine Co. in the bidding process, which will see the company buy Hanjin's Asia to US operations, according to Reuters. Final sale documents are expected to be signed on 21 November, however, financial details of the deal were not disclosed.

The deal includes Hanjin's manpower systems and five of its container ships. And, it is understood Korea Line will also take on all employees, according to Bloomberg.

Korea Line filed for bankruptcy protection in 2011 before being bought by the Samra Midas Group in 2013. It operates 29 vessels hauling goods such as iron ore, crude oil and cars. 

South Korea is said to be planning to set up a state-backed financing company to help improve the financial health of the country's marine transport industry following the recent collapse of Hanjin Shipping.

The financial company will be backed with an initial capital of KRW1trn (US$872m), with the government providing financing of KRW6.5trn to enable local shipping firms to acquire new vessels, according to Reuters

South Korea sets out shipping industry rescue plan?