[비즈한국] Controversy continues over the relocation of the headquarters of HMM011200 (formerly Hyundai Merchant Marine). President Lee Jae-myung plans to move HMM’s headquarters to Busan, but there is significant opposition from HMM employees. If the relocation is pushed through in this climate, a clash between President Lee and HMM staff may be unavoidable. Whether he can persuade the employees is expected to be a test of President Lee's leadership.
During his presidential campaign, Lee Jae-myung pledged to relocate HMM's headquarters to Busan. The local community in Busan has welcomed the move. In a statement on June 11, the Busan Chamber of Commerce and Industry noted, "The relocation of HMM to Busan will be the first instance of a tangible effect in decentralizing an economy centered on the capital region," adding that it "will provide a groundbreaking boost to the stagnant Busan economy through youth employment, regional investment, and the strengthening of industrial capabilities."
President Lee is known to have a strong interest in developing the Northern Sea Route, which refers to maritime passages through the Arctic Ocean. Although the route is not currently developed, melting Arctic ice due to global warming could open new maritime paths in the future. The shipping industry expects that utilizing the Northern Sea Route will reduce logistics costs compared to existing routes. President Lee has selected Busan as the advance base for developing this route. To this end, he intends to relocate the Ministry of Oceans and Fisheries (MOF) and HMM headquarters to Busan.
The key is HMM's cooperation. As a private company, HMM can relocate its headquarters without parliamentary consent, but the presidential office cannot force it. However, it is difficult for HMM to simply ignore the demands of the presidential office, as it remains under government influence. HMM's largest shareholder is the Korea Development Bank (KDB) with a 36.02% stake, and the second-largest is the Korea Ocean Business Corporation with a 35.07% stake. Both are public institutions. The authority to appoint the HMM board of directors effectively lies with the government.
Even if HMM management agrees to the relocation, the task of persuading internal staff remains. Many HMM employees oppose the move. After President Lee’s election, the HMM onshore labor union stated on June 4, "If the relocation becomes a reality, it will cause chaos due to organizational restructuring and decline in international credibility, weakening competitiveness during the reorganization of global shipping alliances." They added, "Pushing for the relocation of a private company without employee consent just because the government holds a large stake contradicts the principles of commercial law."
HMM's labor force is divided primarily into the HMM Shipping Union and the HMM Onshore Union. The shipping union consists mostly of crew members, while the onshore union is comprised of office staff, most of whom work in Seoul. It is reported that there are approximately 600 members in the shipping union and 900 in the onshore union. The shipping union is affiliated with the Federation of Korean Trade Unions (FKTU), while the onshore union is under the Korean Confederation of Trade Unions (KCTU).
The shipping union appears to be in favor of the relocation. However, as the onshore union has more members, their opinions cannot be ignored. In a similar case, when former President Yoon Suk-yeol pushed for the relocation of the KDB headquarters, a significant number of KDB employees resigned. If President Lee aggressively pursues the relocation of HMM's headquarters, it could lead to a conflict with the KCTU in a worst-case scenario.
There is another issue. KDB has attempted to sell HMM for several years but has failed. As the HMM onshore union argues, if company competitiveness deteriorates or labor-management conflicts arise after the relocation, a sale could become even more difficult. Yang Chang-ho, vice chairman of the Korea Shipowners' Association, stated at the '2025 Shipping Association CEO Workshop' on June 27 that while the relocation of HMM has "symbolic meaning in strengthening Busan's status as a maritime capital," it is "unclear whether it is directly linked to the revitalization of the shipping industry itself, or an increase in revenue and profitability."
President Lee is currently focused more on the relocation of the MOF than HMM. The relocation of the ministry is expected to be spearheaded by Jeon Jae-soo, the nominee for Minister of Oceans and Fisheries. On June 25, the nominee stated, "We must listen to the diverse opinions of HMM members," but added, "To maximize the effect of making (Busan) a strategic base for the era of the Northern Sea Route, the Ministry of Oceans and Fisheries overseeing administration, the maritime court overseeing judicial functions, competitive shipping lines, and financial institutions capable of investment must be clustered together." Regarding the sale of HMM, he said, "It is not a matter for the MOF to decide entirely," and that he "will consult thoroughly with the creditors."
Discussions regarding the relocation of HMM's headquarters are expected to proceed in earnest after the MOF relocation is complete. Until then, President Lee must persuade HMM employees and devise measures regarding the sale. A business world insider predicted, "Since ministerial appointments are not yet complete and the position of KDB chairman is also vacant, the relocation of HMM's headquarters will likely only begin after internal matters are settled. HMM has not yet officially reviewed the relocation, so it will take some time." HMM has not issued a specific statement regarding the headquarters relocation.