It has been confirmed that President Lee Jae-myung's pledge to transfer the headquarters of the shipping company HMM to Busan is included in the national agenda. The Presidential Committee on Policy Planning reported the final version of the national agenda, including the content of the HMM headquarters transfer, to President Lee on the 1st.
According to a report by ChosunBiz on the 4th, the committee has finalized the transfer plan for HMM's headquarters in Busan as part of President Lee's presidential campaign promises. Previously, the committee had been discussing plans to build Busan as a maritime hub city, primarily through the Economic Subcommittee.
A senior official from the committee told ChosunBiz, "The HMM headquarters transfer is included in the national agenda as it was mentioned multiple times by the president during the election. The transfer of headquarters for shipping companies, including HMM, will be addressed as a plan to build Busan into a maritime capital and a forward base for Arctic routes."
The transfer of HMM's headquarters is included in the Democratic Party's 21st presidential election pledge to attract 100 major corporations to the Busan area. President Lee also mentioned the transfer of HMM's headquarters several times during the election period. It is said that as the committee is selecting national agendas centered around the president's campaign speeches and Facebook pledge announcements, the repeatedly emphasized transfer of HMM's headquarters naturally found its way into the final version of the national agenda.
The first formal announcement of the transfer of HMM's headquarters by President Lee was during a rally in Busan on May 14. On June 1, during his last campaign stop in Busan, he emphasized again, saying, "The government holds over 70% equity in HMM, the largest domestic shipping company. We will treat the transfer as a government policy and will push forward even if the workers do not fully agree."
The equity in HMM is held by Korea Development Bank at 36.02% and Korea Ocean Business Corporation (KOBC) at 35.67%. Effectively, the government owns a 71.69% stake. Amendments to the articles of incorporation regarding the 'transfer' of the headquarters from Seoul to Busan can pass with more than two-thirds approval at a shareholders' meeting as per commercial law. Therefore, if the government is willing, the transfer of headquarters is possible.
However, the general consensus in the industry is that transferring HMM's headquarters to Busan may not help enhance corporate competitiveness. Given the nature of the shipping industry, which operates in ports worldwide, it is argued that transferring the headquarters to Busan could only reduce operational efficiency. HMM's land union immediately issued a statement the day after President Lee's election, strongly urging, "We call for an immediate halt to political violence that significantly undermines the autonomy and independence of publicly listed companies."
The committee has not yet determined specific plans or timelines regarding the transfer of HMM's headquarters. The Ministry of Oceans and Fisheries, another target for relocation to Busan, plans to move by the end of the year, but HMM appears to be contemplating the timing of its transfer a bit more. If the transfer, which was devised to revitalize the local economy in Busan, is not completed, there is a possibility of criticism that it was merely a 'local election' promise.
A senior official from the committee stated, "The Ministry of Oceans and Fisheries, which plans to relocate by the end of the year, is a government department, so if the government has the will, it can be done. However, HMM is a private corporation, and thus has not decided on specific methods or timelines. The national agenda only includes the broad direction of 'HMM headquarters transfer to Busan.'"