Oceans Minister Chun Jae-soo speaks throughout 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 consideration as hypothesis grows that the corporate will observe different delivery companies and the Ministry of Oceans and Fisheries by relocating its headquarters to Busan.
The proposed transfer is presently going through sturdy backlash from its employees, most of whom are based mostly in Seoul’s monetary district of Yeouido.
After Oceans Minister Chun Jae-soo mentioned he’ll unveil a highway map for HMM’s relocation subsequent month, the corporate’s union staged a protest in entrance of the presidential workplace in Seoul on Thursday, warning it could go on strike if the federal government pushes forward with the plan.
A day after the rally, nevertheless, SK Transport and H-Line Transport — two mid-sized bulk delivery firms managed by personal fairness agency Hahn & Firm — introduced they’d transfer their headquarters from Seoul to Busan. This follows the Oceans Ministry’s personal relocation from Authorities Complicated Sejong, which started Monday.
Busan residents have additionally urged HMM to align with the Lee Jae Myung administration’s push to show town right into a hub for the maritime business, noting that just about 7 trillion gained ($4.7 billion) in taxpayer cash was spent to normalize the corporate’s operations. Nonetheless, HMM’s two largest shareholders stay the state-run Korea Improvement Financial institution (KDB) and the Korea Ocean Enterprise Corp. underneath the supervision of the oceans ministry.
The signal of the Ministry of Oceans and Fisheries is put in at its new workplace constructing in Busan, Friday. Yonhap
The delivery agency’s upcoming privatization, nevertheless, may complicate the relocation plan.
After Harim Group failed to accumulate HMM final yr, a number of firms have been floated as potential candidates for the following takeover bid. Amongst them are POSCO Group, which wants ships to move metal and battery supplies, and Dongwon Group, a seafood big that competed within the earlier bid.
The federal government might favor promoting HMM to an organization that guarantees to maneuver its headquarters to Busan. Nevertheless, a brand new purchaser might rethink that transfer to ease union considerations and forestall a lack of employees.
“Regardless of who takes over the corporate, the brand new proprietor should assure job safety and preserve the Seoul headquarters,” the HMM union mentioned.
This isn’t the primary time HMM has discovered itself on the middle of controversy over political pledges to relocate its headquarters. Related guarantees have been made in the course of the 2022 presidential election and the 2021 Busan mayoral election.
HMM moved its workplace to Yeouido in 2022 from the principle constructing of its former dad or mum, Hyundai Group, citing proximity to the KDB and the Korea Shipowners’ Affiliation. The district additionally beforehand hosted the headquarters of the now-defunct Hanjin Transport, as soon as Korea’s largest delivery firm.
