HMM is currently in the spotlight amid increasing speculation that the company may relocate its headquarters to Busan, following the trend set by other shipping firms and the Ministry of Oceans and Fisheries. The prospect of moving has been met with significant resistance from employees, primarily located in Seoul’s financial hub of Yeouido.
Oceans Minister Chun Jae-soo announced plans to unveil a detailed roadmap for HMM’s relocation in the coming month, prompting the company’s labor union to stage a protest outside the presidential office in Seoul. During the rally, union members expressed their readiness to strike if the government continues to advocate for the move.
Adding to the landscape, two mid-sized bulk shipping companies—SK Shipping and H-Line Shipping—recently declared their decision to shift their headquarters from Seoul to Busan. This development comes on the heels of the Oceans Ministry’s relocation from Government Complex Sejong, a process that commenced earlier this week.
Supporters in Busan are urging HMM to align with the current administration’s strategy to establish the city as a maritime industry hub. They highlighted the nearly 7 trillion won ($4.7 billion) in taxpayer funds that have been invested to stabilize HMM’s operations. Notably, HMM’s two primary shareholders are the state-operated Korea Development Bank (KDB) and the Korea Ocean Business Corp., overseen by the Ministry of Oceans.
However, the potential privatization of HMM could complicate any relocation plans. Following Harim Group’s unsuccessful attempt to acquire HMM last year, several companies have emerged as possible buyers, including POSCO Group, which requires vessels for transporting steel and battery materials, and Dongwon Group, a seafood powerhouse that participated in the previous acquisition bid.
The government may lean towards a sale that ensures the new owner commits to moving HMM to Busan. Yet, prospective buyers might reconsider such a move to alleviate union concerns and avoid jeopardizing employee retention. “No matter who takes over the company, the new owner must guarantee job security and keep the Seoul headquarters,” stated the HMM union.
This situation marks yet another chapter in HMM’s ongoing struggle with the implications of political promises regarding its headquarters’ relocation. Similar commitments were made during the 2022 presidential election and the 2021 Busan mayoral election. In a previous move, HMM transitioned its office to Yeouido in 2022, departing from its former parent company Hyundai Group’s main building to be closer to the KDB and the Korea Shipowners’ Association, while also reflecting on the district’s historical significance as the headquarters of Hanjin Shipping, once the largest shipping enterprise in Korea.
While the future remains uncertain, the ongoing debates and protests reflect the deep commitment of HMM’s workforce to their current location, highlighting the complexities involved in corporate relocation decisions.