To ensure the successful relocation of HMM, South Korea's only national shipping company, to Busan, additional support from the government and the city is urgently needed. The establishment of a shipping industry cluster that encourages other shipping and port companies to relocate is also essential.
Ahn Byeong-gil, CEO of the Korea Maritime Promotion Corporation, stated at a press conference on June 8, "Support from local governments, including Busan, is crucial for the relocation of shipping companies like HMM. Providing incentives is necessary for effective results."
Ahn emphasized the need to create a shipping or maritime industry cluster through additional support, focusing on relocating HMM and other shipping and port companies to Busan to enhance regional specialization.
He noted, "Busan is also aiming to establish a shipping cluster, but related incentives are essential. According to the 'Special Act on Support for Relocation of Marine and Fisheries Institutions to Busan,' not only the Ministry of Oceans and Fisheries but also private companies can receive support if they relocate to Busan."
Industry insiders argue that simply moving HMM's headquarters to Busan should not be limited to a change of address. Previously, SK Shipping and H-Line Shipping also announced their relocations to Busan, but only about 15 employees from SK Shipping currently work there, and H-Line Shipping has only changed its address. Given this context, it would be nearly impossible for all HMM employees to move to Busan.
One industry source remarked, "It is premature to discuss a full relocation when the site for HMM's new headquarters has not even been confirmed. In the past, financial public enterprises were attracted to Busan, but now only empty shells remain. We must avoid repeating this mistake."
The Ministry of Oceans and Fisheries announced in April that it would secure a site for HMM's headquarters within the 'Phase 1 Redevelopment Area of Busan North Port' in Jung-gu and Dong-gu, but HMM has already changed its address to the 'Heungkuk Life Building' in Choryang-dong.
Ahn clarified that the timeline for HMM's relocation is not set for completion by the end of the year, stating, "It does not have to be completed by the end of the year. It means we will finalize the planning within this year, and the current lease for HMM's office runs until May next year." He added, "The outline of the relocation will become clear once labor agreements are reached, and more time is needed."
Regarding HMM's privatization, Ahn said, "The Korea Development Bank is in a hurry to sell, but our focus is on how to grow HMM into a global shipping company. There have been no discussions with the bank regarding the sale."
Additionally, during the press conference, the Korea Maritime Promotion Corporation revealed the status of financial support for national shipping companies from the previous year. Although the amount of new financing in the shipping market decreased last year, the proportion of private capital inflow increased.
* This article has been translated by AI.
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