Chairman Kim Hong-guk: "If HMM is put up for sale, we will reconsider acquisition"... Harim draws the line

"Finding a Private Owner Requires Sincerity"
Performance Rebound and Valuation Increase Are Variables
Company Cautions Against Overinterpretation
25th Anniversary Yonggari Chicken Plans Export Expansion

Kim Hong-guk, chairman of Harim, expressed his position regarding the acquisition of HMM (formerly Hyundai Merchant Marine), the only domestic deep-sea container shipping company, saying, "If (HMM) is put up for sale again, I will consider whether to acquire it."

On the 16th, Kim visited the Yonggari Chicken 25th anniversary pop-up store event venue in Seongsu-dong, Seongdong-gu, Seoul, and said, "The key is whether there is sincerity regarding the sale." Although he was selected as the preferred negotiator in the previous acquisition battle, negotiations ultimately broke down earlier this year, but this can be interpreted as not having given up on the intention to acquire HMM.

Chairman Kim Hong-guk of Harim visited the Yonggari Chicken 25th Anniversary Pop-up Store event venue set up in Seongsu-dong, Seongdong-gu, Seoul on the 16th and toured the pet-friendly space.

The search for a new owner of HMM continues after negotiations with Harim fell through. At a press briefing held on the 14th, Kang Do-hyung, Minister of Oceans and Fisheries, said, "Since the Korea Development Bank and the Korea Ocean Business Corporation have roles, it is difficult for the ministry to comment," but added, "The search for a private owner of HMM is ongoing."

Regarding this, Chairman Kim expressed skepticism, saying, "I cannot trust the (Ministry of Oceans and Fisheries') position that they are looking for a private owner," and added, "If that were the case, it should have been sold last time, but it is hard to understand their true intentions."

Harim formed a consortium with JKL Partners to participate in the main bid for HMM acquisition in December last year and was selected as the preferred negotiator. They presented ambitions to leap forward as a comprehensive logistics company, expecting synergy between Pan Ocean, a bulk shipping company acquired in 2015, and the national shipping company HMM. It is known that their bid price was 6.4 trillion KRW, 200 billion KRW higher than that of Dongwon Group, which also participated in the competition. However, the sale was ultimately canceled as the parties could not narrow their differences during seven weeks of negotiations. Chairman Kim claimed, "During the previous sale process, the Korea Ocean Business Corporation did not show willingness to sell."

However, with HMM’s performance rebounding due to rising sea freight rates, the fact that its valuation has increased compared to before is a variable even if the sale process is resumed. The securities industry forecasts HMM’s operating profit for the third quarter of this year to rise by 1,346.8% year-on-year to 1.0967 trillion KRW. Sales for the same period are expected to increase by 52.9% to 3.2514 trillion KRW. Harim’s side cautioned against overinterpretation, saying, "It is only that we can reconsider whether to acquire it, but currently, the consortium formation and all related matters have ended."

Meanwhile, Harim is operating a Yonggari Chicken pop-up store under the theme "Yonggari Has Disappeared" from the 7th of this month until the 3rd of next month. Yonggari Chicken is a chicken nugget product produced by Harim since 1999. The pop-up store is decorated indoors and outdoors so that consumers who have tasted the product since childhood can recall memories, and it also introduces various new products tailored to adult tastes.

The outdoor space is designed to be visited with pets. Visitors can enjoy games and prizes for pets and their owners, such as "Dinosaur Egg Nosework," where dogs find hidden treats by scent. A separate booth operated by Harim Pet Food displays pet foods including healthy Yonggari Chicken and cookies made for dogs, as well as dog beer produced by overseas beer manufacturers.

In the indoor zone for general visitors, there is a space where people can taste Yonggari Chicken and new products such as "Fire Yonggari Chicken" and "Yonggari Fire Stir-fried Noodles" paired with beer, divided into nostalgic flavors and adult flavors. Additionally, there is an experiential space that evokes memories, featuring a large boombox radio playing past hit songs, dart throwing, and pump games.

Chairman Kim said, "Harim products are increasing exports mainly to the United States and are expected to enter various countries including those in Asia," adding, "Yonggari Chicken is also planned to be exported worldwide in the future." He also said, "Since many buyers will attend the World Korean Business Convention held in Jeonju from October 22 to 24, we plan to showcase various products on-site and conduct factory and production site tours."