HMM Privatization Talks Restart as Food and Steel Groups Circle the Shipping Line
Creatrip Team
3 months ago
South Korea’s state-led sale of HMM (formerly Hyundai Merchant Marine) has revived after a year-long pause. KDB Industrial Bank has begun an external valuation and due diligence, issuing an RFP to accounting firms and aiming for a final report by late February. The government plans to unveil a governance-restructuring roadmap, including a possible move of HMM’s headquarters to Busan, which could clarify the privatization plan and handling of public stakes. Food companies are re-entering the bidding because stable shipping capacity directly affects their cost and supply chains—especially seafood and processed-food firms that import raw materials. Dongwon Group has reactivated an internal task force after narrowly losing last year’s bid and could create vertical integration linking fishing, logistics, terminals, ports, and food processing. Harim Group is seen as unlikely to re-challenge due to heavy reliance on financial investors and other capital commitments. POSCO is also exploring acquisition, hiring advisers (Samil PwC, BCG) to study options that might include taking KDB’s stake and co-managing with Korea Ocean Business Corp (KOBC). Some in shipping warn POSCO ownership could shift HMM toward serving steel-sector logistics, potentially weakening its role as an independent global carrier.
