According to The Korean Economic Daily, discussions surrounding the future ownership of HMM, a prominent South Korean shipping firm, have resurfaced following the collapse of a previous sale attempt. Reports indicate that POSCO, a leading steel manufacturer, is formulating plans to acquire control of HMM.
The publication notes that POSCO has shifted its approach and is now keen on re-entering the maritime sector after opting out of a government auction in 2023 aimed at selling HMM. Historically involved with Hanjin until its divestment in 1995, POSCO is currently seeking new avenues for growth amid challenges such as U.S. tariffs affecting its steel and battery operations.
Since 2016, two state-owned banks—the Korea Development Bank (KDB) and the Korea Ocean Business Corporation (KOBC)—have maintained majority ownership of HMM following a government-led rescue initiative. Together, these institutions hold over 70% of HMM’s shares and are contemplating privatization to redirect taxpayer funds into other ventures that could bolster South Korea’s economy.
KDB holds approximately 36% of HMM and appears to be spearheading efforts for privatization. Previously, Harim was chosen as the preferred bidder; however, negotiations faltered in early 2024 due to disagreements over management rights post-sale. KDB is reportedly considering launching another bidding round.
The strategy from POSCO aims at acquiring shares directly from KDB through private negotiations. Meanwhile, KOBC intends to maintain its stake while exploring co-management opportunities with POSCO regarding HMM’s operations.
Korean regulations stipulate that any sale of HMM must occur via public auction; however, if this route were pursued again, companies like HD Hyundai Heavy Industries and Harim might express interest as potential bidders. Notably though, POSCO’s current strategy could circumvent this requirement altogether.
In terms of business diversification efforts at HMM—primarily known for container shipping—the company has been actively pursuing acquisitions such as SK Shipping for dry bulk expansion while also looking into purchasing individual bulkers and tankers alongside constructing new containerships. Additionally, it has ordered car carriers set to operate under charter agreements with Hyundai-Glovis along with four multi-purpose cargo vessels.
