This article was displayed on the ChosunBiz MoneyMove (MM) site at 5:11 p.m. on Sept. 10, 2025.
The long-vacant post of president of KDB Industrial Bank has been filled after three months. On the 9th, former Industrial Bank compliance officer Park Sang-jin was named the new president.
Who will take the next Industrial Bank president's seat has drawn attention from the investment banking (IB) sector. The position could determine the direction of the HMM sale, which has been drifting without a timetable.
With a "powerful" figure now set to lead the Industrial Bank, the market expects momentum to build behind the HMM sale. Although internal candidates are usually seen as weak, Park Sang-jin is different. He was a university classmate of President Lee Jae-myung.
◇ President Lee and classmates in Chung-Ang University law school exam prep class...sale likely to gain momentum
According to the Financial Services Commission on the 10th, Chairperson Kim Byung-hwan on the previous day nominated former compliance officer Park Sang-jin to be the next Industrial Bank president.
What government and financial circles are particularly watching is Park's background. Park is a member of Chung-Ang University law school class of 1982 and was classmates with President Lee in the exam prep class. President Lee passed the bar exam in 1986, but Park gave up the exam and joined the Industrial Bank in 1990.
The IB industry has long hoped the next Industrial Bank president would be a so-called "powerful" figure. A powerful person at the helm could strongly push for the sale of HMM shares. Industrial Bank holds 36.02% of HMM equity and faces pressure, given its role as a policy finance institution, to recover its investment. Industrial Bank's HMM sale nearly succeeded early last year but collapsed when negotiations with the preferred bidder consortium Harim-JKL Partners fell through.
There are many variables to consider in the HMM sale. First, the Korea Ocean Business Corporation, which was cited as a major reason the sale failed last year, still appears uncooperative. The Korea Ocean Business Corporation holds 35.7% of HMM equity.
The Korea Ocean Business Corporation is said to hold the view that shipping is a kind of national strategic industry and HMM cannot be hastily privatized. Added to that are complex political issues. During the presidential campaign, President Lee pledged to move the Ministry of Oceans and Fisheries and HMM headquarters to Busan, an issue tied to jobs and directly connected to public sentiment in the Busan region. With local elections scheduled for next year, there is bound to be reluctance about privatization.
Because the interests of Industrial Bank and the Korea Ocean Business Corporation differ, the industry believes it would ultimately be best for Industrial Bank to sell only its equity independently of the Korea Ocean Business Corporation. An IB industry source who worked at financial authorities said, "From Industrial Bank's standpoint, because a powerful person has become president, the constraints on selling only its equity have largely disappeared."
◇ POSCO is the suitable buyer to pay a premium even though it's not a controlling stake
The IB industry is watching POSCO, which is assessing the possibility of acquiring HMM. A senior industry official said, "If only Industrial Bank's equity is put on the market separately, POSCO would be the most suitable buyer," adding, "The sale could pick up steam as soon as the first half of next year."
If Industrial Bank's equity were acquired while the Korea Ocean Business Corporation continues to hold its HMM equity, the buyer would have to manage the company jointly with the Korea Ocean Business Corporation. An industry official said, "Would family-run conglomerates, which want to run management as they please, comply with the Korea Ocean Business Corporation's wishes?" and added, "But POSCO is different. It is almost the only major corporation that can pursue joint management with the Korea Ocean Business Corporation."
The business synergies are also viewed as sufficient. Samil Accounting Corporation, which recently consulted on POSCO's potential acquisition of HMM, reportedly judged there were many areas for cooperation between the two companies. HMM is focused on container ships and thus vulnerable to volatility in the shipping market; that volatility can be mitigated by bulk carriers and tankers. POSCO INTERNATIONAL operates in the liquefied natural gas (LNG) business and is considered one of the companies with the largest domestic demand for bulk carriers and tankers.
There are political reasons POSCO would have to actively pursue the HMM acquisition. An IB industry official said, "At each change of administration, ownerless corporations including POSCO tend to actively join government-led M&A," and stressed, "Since POSCO also has business synergies, the deal has a strong chance of succeeding."