KDB, HMM on edge as presidential candidates vow to move them to Busan
The Korea Development Bank (KDB) is in a dilemma over major presidential candidates’ pledges to move it and HMM, Korea's largest shipping firm, which it controls, to Busan, as politicians try to woo voters in the nation's second-largest city, according to industry officials, Tuesday. Lee Jae-myung, the presidential frontrunner from the liberal Democratic Party of Korea (DPK), pledged to relocate HMM headquarters from Seoul to Busan. Such a promise is aimed at bolstering Busan’s economic growth as the country’s largest port city, at a time when it struggles with a shrinking population and fewer jobs. Underlying Lee’s pledge is that KDB, a state-run lender, remains HMM’s largest stakeholder. Otherwise, the new government would not have adequate reasons to ask the company to move its headquarters. But KDB has sought to sell its 36.02 percent stake in HMM for years, after the shipper underwent court receivership, but it has fully normalized its operation. Unloading the stake has become increasingly crucial, as HMM’s stock price is on an upward trajectory and puts pressure on KDB
May 20, 2025By Yi Whan-woo
