HMM Union "Welcomes Decision to Withdraw Sale to Harim"

Harim Expresses Regret... "A Deal No Private Company Could Accept"

The HMM labor union welcomed the decision by KDB Industrial Bank and the Korea Ocean Business Corporation not to sell the company to Harim.

On the 7th, HMM's two major unions, the HMM Maritime Federation Union and the National Office and Financial Workers' Union HMM Branch (Land Union), issued a statement expressing this position.

The unions stated, "During this sale process, we continuously expressed serious concerns that the poor and opaque financing plans of the preferred bidder and the acquirer's unreasonable demands, which even refused minimal oversight by state authorities, could lead to a second Hanjin Shipping crisis in the shipping industry. We actively welcome today's decision by KDB Industrial Bank and the Korea Ocean Business Corporation, which reflects the urgent voices of the shipping industry and is a decision that changes the fate of South Korea's shipping industry."

They added, "The failure of this sale is not a failure of the sale itself but a process of realizing the importance of establishing a privatization governance plan for South Korea's representative national shipping company. We hope this will serve as an opportunity to reestablish a national shipping industry development master plan centered on the Ministry of Oceans and Fisheries, the government’s main department, and the Korea Ocean Business Corporation." The unions also decided to withdraw their planned strike, which was initially intended if the sale to Harim Group had been finalized.

Meanwhile, Harim Group also released a statement regarding the final collapse of the negotiations. Harim expressed regret, saying, "There were differences in positions between the sellers, composed of banks and public enterprises, making negotiations difficult. Any private company would find it hard to accept a deal that does not guarantee actual management rights but only grants the status of the largest shareholder."

As the HMM acquisition battle officially begins, the HMM headquarters located in Park One Tower, Yeouido. Photo by Jo Yongjun jun21@