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.
Will HMM relocate headquarters to Busan after general elections?
A person passes by an electronic board on the wall of HMM's head office in Seoul in this Feb. 7 file photo. Yonhap
By Park Jae-hyuk
Calls are growing for HMM, Korea’s largest container shipping company, to relocate its headquarters from Seoul’s financial district of Yeouido to the southeastern port city of Busan, according to industry officials, Tuesday.
Both ruling and opposition party candidates representing constituencies in Busan have promised to accomplish the relocation. This has led to industry officials paying close attention as to whether politicians will keep their word after the general elections, which will take place this Wednesday.
The main opposition Democratic Party of Korea (DPK) vowed to find ways to attract HMM to move its headquarters to Busan, in addition to the main branch of the Korea Development Bank (KDB), a state lender that is the shipping firm’s largest shareholder.
Lee Seong-kweun, the ruling People Power Party’s candidate representing residents of Busan’s Saha District, also welcomed the discussion on the relocation of HMM’s headquarters to Busan, saying that it will create jobs, increase tax incomes and enable the city to become a global business hub.
“I will accomplish the relocation of KDB and HMM to Busan, as I previously made efforts for KDB’s relocation to Busan, when I was the Busan vice mayor of economic affairs, despite the DPK’s interruption,” he said.
Eunsan Shipping & Aircargo Chairman Yang Jae-saeng, who was elected last month to lead the Busan Chamber of Commerce & Industry, told reporters that he will make all-out efforts to relocate HMM’s headquarters to the city.
“Just like foreign countries having the headquarters of logistics firms near harbors, Busan should accommodate the headquarters of large logistics firms, such as HMM,” he said.
Earlier this month, Kim Jin-hong, head of Busan Dong District, issued a statement supporting the Busan chamber chairman’s remarks.
“HMM’s union expressed its opinion that the company needs to contribute to Busan’s growth,” Kim said. “The relocation of its headquarters to Busan should be determined as soon as possible.”
Korea Ocean Business Corp. (KOBC), HMM’s second-largest shareholder, is also said to have agreed to the relocation of the shipping firm’s headquarters, given that the state-run company, under the supervision of the Ministry of Oceans and Fisheries, is located in Busan.
Oceans Minister Kang Do-hyung said that he would thoroughly review the feasibility of the relocation, during his confirmation hearing at the National Assembly late last year.
However, more than 900 HMM employees working at its Seoul headquarters oppose the proposed relocation. Some industry officials expect the proposed relocation to end up as an empty promise once again, because similar pledges were made during the presidential election in 2022 and the election for the Busan mayor in 2021.
When HMM moved its headquarters to Yeouido in 2022 from the main building of its previous owner, Hyundai Group, the shipping firm cited the proximity to the KDB and the Korea Shipowners’ Association. In addition, the financial district once accommodated the headquarters of the now-defunct Hanjin Shipping, which was once Korea’s largest shipping company.