SK Shipping and H-Line to Relocate to Busan Next Year in Line with Ministry’s Move

Accelerating the Creation of the Marine Capital Region... HMM Relocation Faces Challenges
2,500 Employees from Both Companies to Move, Boosting Local Economy
Concentration of Shipping Administration, Judicial, and Financial Functions Expected to Gain Momentum

SK Shipping and H-Line Shipping will relocate their headquarters to Busan in the first half of next year. This large-scale move coincides with the Ministry of Oceans and Fisheries' relocation to Busan, and is expected to accelerate the government's plan to establish the "Southeast Marine Capital Region." However, the relocation of HMM, a key company, to Busan is expected to face difficulties due to opposition from labor unions.

On December 5, the two shipping companies officially announced their headquarters relocation plans at the Comodo Hotel in Busan, with Minister of Oceans and Fisheries Chun Jae-soo, SK Shipping CEO Kim Sungik, and H-Line Shipping CEO Seo Myungdeok in attendance. Each company plans to hold a general meeting of shareholders this month to complete amendments to their articles of incorporation, finalize registration of the new headquarters in January next year, and complete the relocation of their offices and employees within the first half of the year.

Yonhap News Agency

Minister Chun stated, "The relocation of these two companies to Busan is the finishing touch in establishing the marine capital region," and added, "By concentrating administrative, judicial, and financial functions, we will foster Busan as the nation's second growth engine." He further commented, "This decision will serve as a catalyst for other shipping companies to relocate as well."

CEO Kim Sungik said, "We have been seeking ways to strengthen our competitiveness in the shipping industry, and the Ministry's relocation to Busan provided the breakthrough." CEO Seo Myungdeok explained, "We will retain departments that require close connection with Seoul, but will gradually relocate those with greater synergy potential first."

SK Shipping, established in 1982, is the nation's seventh-largest energy transport company, operating a total of 61 vessels-including crude oil carriers, liquefied natural gas (LNG) carriers, and liquefied petroleum gas (LPG) carriers-with 1,398 employees. H-Line Shipping, launched in 2014 based on Hanjin Shipping's bulk division, is the nation's tenth-largest specialized shipping company. It owns a total of 58 vessels, including 50 bulk carriers and 8 LNG carriers, and employs 1,150 people. With a combined workforce of over 2,500, the relocation is expected to have a significant impact on the Busan regional economy.

The government plans to concentrate shipping-related administrative, judicial, and financial functions in Busan, along with the relocation of the Ministry of Oceans and Fisheries, to foster the Southeast region as a growth axis comparable to the capital area. The "Special Act on Support for Institutions Relocating to the Busan Marine Capital," passed by the National Assembly last month, includes support for relocation costs, loans, and housing supply for relocating employees.

The Ministry of Oceans and Fisheries is also pursuing the relocation of HMM to Busan, following SK Shipping and H-Line Shipping. However, the HMM labor union is strongly opposing the move, calling it a "forced relocation of a private company," making the actual relocation uncertain.