[비즈한국] HMM is moving into the DB Insurance Busan Office building. The DB Insurance Busan Office is a 24-story building that was completed in June of this year. It is located in Busanjin-gu, Busan, and is connected to Seomyeon Station, one of the city's busiest districts. HMM will lease and occupy four floors of the building. In the long term, the company plans to construct a new headquarters in the North Port area. Until then, the DB Insurance Busan Office is expected to serve as its functional headquarters. HMM still faces several significant challenges, including the number of employees relocating to Busan and plans for the construction of the new North Port headquarters.
HMM is scheduled to move into the DB Insurance Busan Office on October 12. According to the real estate registry, HMM registered a jeonse (lump-sum deposit lease) right for floors 14 to 17 of the DB Insurance Busan Office on September 30. The term of this lease is until September 30, 2031. Of course, there is a possibility that HMM may extend the lease or relocate before the expiration date.
Employees currently working at the HMM Busan Sales Headquarters will be the first to move in. The HMM Busan Sales Headquarters is currently located in the Heungkuk Life Insurance Busan building, which is also listed as the official corporate headquarters in HMM’s registration. There are approximately 100 employees working at the Busan Sales Headquarters, accounting for about 10% of the company's total onshore workforce of approximately 1,000.
The next challenge is the relocation of key personnel working at HMM’s Seoul office. A true relocation of the headquarters will only be achieved once these individuals move to the DB Insurance Busan Office building. The HMM onshore labor union reached an agreement with management in April of this year regarding the move to Busan. The company promised to provide various support measures for employees relocating to Busan, and the government also plans to offer support. Minister of Oceans and Fisheries Hwang Jong-woo said in April this year, "We will provide maximum support to ensure the smooth relocation of HMM to Busan."
HMM recently finalized its support measures and notified employees working in Seoul. Subsequently, the company began the application process for employees wishing to move to Busan. From the employees' perspective, they must decide whether to relocate to Busan after reviewing the company's support package. Specific details of the support plan have not been made public.
The problem arises if the number of employees willing to relocate is lower than expected. If few staff members move, the company faces potential criticism from the local Busan community. Furthermore, if applicants are concentrated in specific departments or if key personnel remain in Seoul, it will be difficult for the Busan office to properly perform the functions of a headquarters. In such a scenario, HMM might offer additional support measures to employees.
An HMM official stated, "The company has proposed support measures, and it is up to the employees to decide whether to apply for a transfer to Busan based on them," adding, "(Employees) won't move to Busan immediately upon applying; it will take time as they need to settle their current living situations before heading to Busan."
Another point of interest is how long HMM will use the DB Insurance Busan Office. HMM has stated that it will build a new headquarters in the North Port for long-term use. However, there has been no specific schedule, let alone the start of construction, for the new building. It is uncertain whether the new headquarters will be completed by September 2031, when the lease for the DB Insurance Busan Office expires.
Although HMM has announced plans to build a "landmark-class headquarters" in the North Port, there is skepticism regarding the feasibility of the project. While the company claims it will be a landmark-class building, implying significant scale, the cost remains a concern (Related article: HMM Pursues "Landmark-Class Headquarters"... North Port Development: A Boon or a Financial Risk?).
A business industry source noted, "There are many variables in constructing large-scale buildings, and the profitability of the building itself cannot be guaranteed, so one cannot be overly optimistic about the new headquarters," adding, "For instance, it has been over 30 years since Lotte Group began pursuing the construction of the Busan Lotte Tower, yet it is still unclear when it will be completed."