POSCO Group Considering HMM Acquisition... "Still Assessing Business Potential"

Seeking New Businesses Amid Sluggish Steel and Secondary Battery Sectors

POSCO Group is considering acquiring HMM, the largest shipping company in South Korea. This move is interpreted as the group keeping open the possibility of entering the shipping industry as it seeks new growth engines beyond its core businesses of steel and secondary batteries.

Jang Inhwa, Chairman of POSCO Group. Provided by POSCO Holdings

According to industry sources on September 4, POSCO is currently reviewing the feasibility of acquiring HMM together with an accounting firm and a consulting company. POSCO, which imports steelmaking raw materials such as iron ore and coal using large vessels, is analyzed to be able to save logistics costs amounting to several trillion won annually if it operates a shipping company directly.

Currently, Korea Development Bank (36.02%) and Korea Ocean Business Corporation (35.67%) are the major shareholders of HMM. Although the sale attempt in 2023 ultimately fell through, the possibility of privatization has recently been raised again.

POSCO has previously stated several times that it was not interested in acquiring HMM. However, as both its steel and secondary battery businesses have recently experienced prolonged sluggishness, the need to discover new businesses has grown, leading the company to review the possibility of entering the shipping industry.

A POSCO Group official stated, "Since last year, we have been restructuring the group’s overall business, and in addition to our core businesses centered on steel and secondary batteries, we are identifying new businesses for future growth," adding, "Our review of acquiring HMM is only at the stage of confirming its growth potential and possible strategic synergy. No decision has been made yet on whether to participate in the acquisition."