Employees of HMM, Korea's No. 1 shipping company, are unsettled by rumors related to a transfer to Busan. President Lee Jae-myung, when he was a presidential candidate, pledged to make Busan a maritime capital and said he would transfer the Ministry of Oceans and Fisheries and HMM to Busan.
As of 26th, according to the shipping industry, HMM has not received any schedule or guidelines from the government or its largest shareholder, the Korea Development Bank, regarding a headquarters transfer. Minister Jeon Jae-soo of the Ministry of Oceans and Fisheries said he would set up a "shipping carrier transfer support council" in connection with the headquarters transfer of large shipping companies, but HMM does not even know whether it will participate in the council.
The shipping carrier transfer support council is an organization set up to devise measures to boost carriers' transfer as the Ministry of Oceans and Fisheries moves its government complex to Busan. The ministry plans to prepare sufficient incentives so that the government, local governments, and stakeholders can participate in the council.
HMM's articles of incorporation require its principal office to be in Seoul. To enable a transfer, the articles must be amended through the board of directors and a shareholders' meeting. HMM's major shareholders are the Korea Development Bank (32.60%) and the Korea Ocean Business Corporation (32.28%), so changing the articles is not an issue, but employee opposition is an obstacle.
Although nothing is underway regarding a headquarters transfer, rumors are circulating that HMM is looking for major office buildings in Busan or that some employees have moved their workplaces to vacant space at the Busan branch. There is even talk that the largest shareholder told the company to prepare for a transfer.
HMM says these rumors are not true. Other than Minister Jeon pursuing transfer-related plans through the shipping carrier transfer support council, nothing has been decided, and the company says it cannot prepare for a transfer that employees oppose.
In June, the HMM Land Labor Union said of the headquarters transfer, "Immediately stop the political violence that gravely undermines the autonomy and independence of a listed company," adding, "Forcing a private corporation's transfer just because a public institution is the major shareholder damages employees' stability and infringes on the management rights of private corporations."
Businesspeople in the Busan area and the Busan Metropolitan City government, city council, and local district offices are urging an HMM transfer. The Busan Chamber of Commerce and Industry also released data saying that if HMM transfers its principal office to Busan and secures a 50-story headquarters building, it could generate employment effects for more than 4,500 people and economic benefits exceeding 1.8 trillion won.
A shipping industry official said, "After President Lee said HMM should be moved to Busan, various talk has been circulating, centered on the Busan area. HMM employees oppose the transfer, so the mood is unsettled."