State spending on strategic industries to surge 43% next year
SEOUL, Oct. 6 (Yonhap) — The privatization of HMM Co. will depend on the stock market and situations in the shipping sector, the country’s oceans minister said Thursday.
South Korea’s top shipper, formerly known as Hyundai Merchant Marine, has been under a creditor-led debt restructuring scheme since 2016, when it lapsed into a credit crunch following years of losses.
There have been growing calls for its swift privatization, given the recent improvement in the global shipping industry and the company’s stellar performance.
In August, the oceans ministry officially made its push for the move clear.
State agencies hold a controlling stake in HMM, with the state-run Korea Development Bank holding the largest stake of 20.69 percent. The Korea Ocean Business Corp. has a 19.96 percent share, and the Korea Credit Guarantee Fund holds 5.02 percent.
“We will comprehensively consider the current circumstances of the shipping industry and the overall stock market,” Oceans Minister Cho Seung-hwan said during a parliamentary audit into his ministry.
“We will continue consultations with related parties concerned, including the Financial Services Commission.”
In the first half of this year, the shipper saw net profit surge more than 1,500 percent on-year to a record 6.06 trillion won (US$4.31 billion), and sales jumped 87 percent to a fresh high of 9.95 trillion won.
The strong performance was attributable to rising freight rates on all routes, including those to the Americas and Europe, amid the post-pandemic recovery, officials said.
Shares in HMM dropped 40 percent over the past year to close at 18,100 won on the Seoul bourse Wednesday in tandem with a lackluster market performance.
This file photo provided by HMM Co. on July 14, 2022, shows one of its container vessels. (PHOTO NOT FOR SALE) (Yonhap)
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(YONHAP NWES)