HMM is drawing attention as speculation grows that the company will follow other shipping firms and the Ministry of Oceans and Fisheries by relocating its headquarters to Busan.

The proposed move is currently facing strong backlash from its workers, most of whom are based in Seoul’s financial district of Yeouido.

After Oceans Minister Chun Jae-soo said he will unveil a road map for HMM’s relocation next month, the company’s union staged a protest in front of the presidential office in Seoul on Thursday, warning it would go on strike if the government pushes ahead with the plan.

A day after the rally, however, SK Shipping and H-Line Shipping — two mid-sized bulk shipping companies controlled by private equity firm Hahn & Company — announced they would move their headquarters from Seoul to Busan. This follows the Oceans Ministry’s own relocation from Government Complex Sejong, which began Monday.

Busan residents have also urged HMM to align with the Lee Jae Myung administration’s push to turn the city into a hub for the maritime industry, noting that nearly 7 trillion won ($4.7 billion) in taxpayer money was spent to normalize the company’s operations. Still, HMM’s two largest shareholders remain the state-run Korea Development Bank (KDB) and the Korea Ocean Business Corp. under the supervision of the oceans ministry.

The shipping firm’s upcoming privatization, however, could complicate the relocation plan.

After Harim Group failed to acquire HMM last year, several companies have been floated as potential candidates for the next takeover bid. Among them are POSCO Group, which needs ships to transport steel and battery materials, and Dongwon Group, a seafood giant that competed in the previous bid.

The government may favor selling HMM to a company that promises to move its headquarters to Busan. However, a new buyer may reconsider that move to ease union concerns and prevent a loss of workers.

Oceans Minister Chun Jae-soo speaks during a naming ceremony of HMM’s methanol-powered container ship at HD Hyundai Samho in Yeongam County, South Jeolla Province, Nov. 20. Courtesy of Ministry of Oceans and Fisheries

Oceans Minister Chun Jae-soo speaks during a naming ceremony of HMM’s methanol-powered container ship at HD Hyundai Samho in Yeongam County, South Jeolla Province, Nov. 20. Courtesy of Ministry of Oceans and Fisheries

HMM is drawing attention as speculation grows that the company will follow other shipping firms and the Ministry of Oceans and Fisheries by relocating its headquarters to Busan.

The proposed move is currently facing strong backlash from its workers, most of whom are based in Seoul’s financial district of Yeouido.

After Oceans Minister Chun Jae-soo said he will unveil a road map for HMM’s relocation next month, the company’s union staged a protest in front of the presidential office in Seoul on Thursday, warning it would go on strike if the government pushes ahead with the plan.

A day after the rally, however, SK Shipping and H-Line Shipping — two mid-sized bulk shipping companies controlled by private equity firm Hahn & Company — announced they would move their headquarters from Seoul to Busan. This follows the Oceans Ministry’s own relocation from Government Complex Sejong, which began Monday.

Busan residents have also urged HMM to align with the Lee Jae Myung administration’s push to turn the city into a hub for the maritime industry, noting that nearly 7 trillion won ($4.7 billion) in taxpayer money was spent to normalize the company’s operations. Still, HMM’s two largest shareholders remain the state-run Korea Development Bank (KDB) and the Korea Ocean Business Corp. under the supervision of the oceans ministry.

After Harim Group failed to acquire HMM last year, several companies have been floated as potential candidates for the next takeover bid. Among them are POSCO Group, which needs ships to transport steel and battery materials, and Dongwon Group, a seafood giant that competed in the previous bid.

The government may favor selling HMM to a company that promises to move its headquarters to Busan. However, a new buyer may reconsider that move to ease union concerns and prevent a loss of workers.

“No matter who takes over the company, the new owner must guarantee job security and keep the Seoul headquarters,” the HMM union said.

This is not the first time HMM has found itself at the center of controversy over political pledges to relocate its headquarters. Similar promises were made during the 2022 presidential election and the 2021 Busan mayoral election.
HMM moved its office to Yeouido in 2022 from the main building of its former parent, Hyundai Group, citing proximity to the KDB and the Korea Shipowners’ Association. The district also previously hosted the headquarters of the now-defunct Hanjin Shipping, once Korea’s largest shipping company.
Source: The Korea Times