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An individual passes by an digital board on the wall of HMM’s head workplace in Seoul, Feb. 7, 2024. Yonhap
Korean delivery firm HMM has been dealing with a number of challenges because the starting of this yr.
Whereas it stays unsure about who will turn into HMM’s new proprietor and whether or not the agency will overcome a market downturn, the federal government has renewed its push to maneuver the corporate’s Seoul headquarters to Busan, Korea’s second-largest metropolis which is now house to the Ministry of Oceans and Fisheries.
Throughout Tuesday’s livestreamed Cupboard assembly, President Lee Jae Myung requested appearing Oceans Minister Kim Sung-bum when HMM will transfer its head workplace to the southeastern port metropolis. As Kim cited a protracted backlash from its labor union, Lee then requested whether or not its administration can also be undecided in regards to the relocation.
“Two main privately owned delivery corporations determined to relocate their headquarters” the president mentioned. “I listed different delivery corporations that might transfer to Busan if the federal government persuades them to take action.”
Lee added that it’s not helpful to find delivery corporations’ head workplaces within the capital space, as Kim launched the ministry’s plan to ascertain a delivery trade cluster by means of a “massive deal” with corporations.
President Lee Jae Myung leaves a gathering room after receiving a coverage briefing from the Ministry of Oceans and Fisheries at its new headquarters in Busan, Dec. 23, 2025. Yonhap
Every week earlier than the president publicly spoke in regards to the concern, HMM CEO Choi Gained-hyok informed reporters that the corporate would don’t have any selection however to pursue the relocation, one of many administration’s nationwide coverage priorities.
“We have to maintain speaking with the union to debate this concern,” Choi mentioned Jan. 15.
Competitors has additionally reignited to accumulate HMM, which is at present below management of the state-run Korea Improvement Financial institution and the Korea Ocean Enterprise Corp. (KOBC) below the supervision of the oceans ministry.
Dongwon Group, which failed in bid to take over HMM in 2023, has not denied hypothesis that its holding agency, Dongwon Industries, will attempt to safe 2 trillion received ($1.4 billion) in money to purchase the delivery agency by promoting its stake in U.S. subsidiary StarKist to Dongwon F&B, one other certainly one of its subsidiaries.
“Because the group’s holding firm, we’re contemplating a number of mergers and acquisitions to find future progress engines,” Dongwon Industries mentioned Tuesday. “As a part of efforts to safe money for this plan, we are going to ask an exterior scores company to evaluate StarKist’s worth. We’re additionally contemplating elevating funds from monetary establishments.”
Final yr, POSCO Group mentioned the corporate was reviewing whether or not its acquisition of HMM would create strategic synergy. Nonetheless, delivery trade officers have opposed the steelmaking group’s entry into the market.
Harim Group additionally stays a serious competitor. The poultry processing firm was chosen as the popular bidder to purchase HMM in 2023, however failed within the acquisition attributable to variations with the vendor in regards to the worth.
Nonetheless, the worsening outlook for the delivery trade could possibly be an impediment to HMM’s privatization. KOBC expects downward strain in world sea freight charges this yr, citing the oversupply of container ships.
In response to monetary information supplier FnGuide, HMM’s working revenue in 2025 is estimated to have dropped 60 % year-on-year to 1.4 trillion received.
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