HMM Revives In-House Loans for Home Purchases and Leases Amid Busan Relocation Debate

Support for Housing with Loan Limits of 100 to 200 Million Won
Planned Contribution of 60 Billion Won to Welfare Fund
Employee Benefits Enhanced by Booming Shipping Industry

HMM, which has been the subject of speculation regarding a potential relocation to Busan and a possible sale, has decided to revive its employee housing loan program for the first time in over a decade. The company explained that, following several years of booming shipping industry performance, it is now using part of its achievements to enhance employee welfare.

HMM headquarters located in Park One Tower, Yeouido, Seoul. Photo by Jo Yongjun

According to industry sources on October 29, HMM is considering introducing an in-house loan program that employees can use for home purchases or lease deposits. To secure the loan funds, the company plans to contribute 59.5 billion won to its employee welfare fund in the second half of the year. With HMM currently employing around 2,000 people, if the entire contribution is allocated to loans, each employee would be able to borrow approximately 30 million won.

The contribution amount was reportedly calculated by labor and management based on the company’s performance over the past three years. As global shipping rates surged, HMM achieved a record-high operating profit of 994.93 billion won in 2022. Although this figure decreased to 584.8 billion won in 2023, last year’s operating profit of 351.28 billion won was still the third highest in the company’s history.

A company representative stated, "We are preparing loans with individual limits of around 100 million to 200 million won," and added, "A similar loan program existed during the Hyundai Merchant Marine era, but it was discontinued when the shipping market deteriorated. We are now bringing it back."

However, the company clarified that the revival of this loan program is not related to a potential relocation of headquarters to Busan. The government plans to establish a roadmap for HMM’s relocation to Busan and its sale by the end of the year. On October 15, Oceans and Fisheries Minister Jeon Jae-soo stated during a parliamentary audit, "We plan to announce a concrete roadmap regarding HMM’s governance structure and the issue of relocation to Busan within this year."

Meanwhile, Korea Development Bank and Korea Ocean Business Corporation have injected approximately 4.2 trillion won in public funds into HMM over the years. It is estimated that they have recovered about 3 trillion won so far through dividends and share buybacks. IM Securities projected that, based solely on dividend income, the principal could be recovered by 2028.

This content was produced with the assistance of AI translation services.