Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Hyundai Glovis continues to deny interest in acquiring HMM
HMM's container ship, left, and Hyundai Glovis' pure car and truck carrier / Courtesy of each company
By Park Jae-hyuk
By Park Jae-hyuk
Hyundai Glovis is still regarded by industry officials as the strongest candidate to acquire HMM from creditors, despite its continuous denials of such speculation.
During last Thursday's conference call on its first-quarter earnings, the logistics arm of Hyundai Motor Group was asked once again about whether it plans to participate in a bid to take over the nation's leading shipping company from Korea Development Bank and the Korea Ocean Business Corp.
“We do not have any intention to carry out a container ship business, as it is irrelevant to our flagship business of shipping vehicles,” Hyundai Glovis CEO Lee Kyoo-bok said, reiterating his company's previous stance.
He made the remarks after Hyundai Glovis denied such speculation on April 12 and during its previous conference call in January regarding the company's 2022 earnings.
The logistics firm, however, is facing difficulties in convincing market observers.
“Hyundai Motor Group had denied the speculation over its acquisition of Hyundai E&C in 2010, before the group took over the builder in 2011,” an industry official said. “In addition, Hyundai Motor Group Executive Chair Chung Euisun, the largest shareholder of Hyundai Glovis, will be able to secure cash for the group's governance reform, if the group takes over the shipping company.”
Given that HMM CEO Kim Kyung-bae formerly led Hyundai Glovis and that both companies had once shared the identity of Hyundai, the automotive group is also considered a stronger candidate compared to other potential buyers such as POSCO, LX, CJ and SM groups.
“POSCO Group is another conglomerate that can afford to buy HMM, but the government is expected to avoid selling the shipping company to the steelmaking group which is prone to state control,” the industry official said.
Along with Hyundai Glovis, POSCO Group has officially denied the speculation over its acquisition of HMM. Other candidates have remained silent, without clarifying their stances.
Korea Investment & Securities analyst Choi Go-woon anticipated that Hyundai Glovis will be able to dispel doubts, once it comes up with specific investment plans for its new businesses.