HMM takes first steps into its Busan era; organizational relocation and a new headquarters remain challenges

[Financial News] HMM, the country’s largest national-flag shipping company, has begun operations at its temporary headquarters in Busan, stepping up its head-office relocation. With its registered head-office address changed and offices for the CEO and employees set up, the move to Busan is seen as having entered the operational phase. Synergies with Busan’s port and shipping infrastructure are expected, but further relocation of the Seoul organization and construction of a new headquarters are among the tasks to be addressed going forward.
HMM held an unveiling ceremony on the 13th at its temporary headquarters in DB Financial Center in Bujeon-dong, Busanjin-gu, Busan. Attendees included President Lee Jae-myung; Choi Won-hyuk, HMM’s president and CEO; Hwang Jong-woo, Minister of Oceans and Fisheries; and Busan Mayor Jeon Jae-soo.
HMM began official operations at its temporary headquarters the previous day. Choi is expected to work between offices in Seoul and Busan. Around 120 people work at the temporary headquarters in Busan, slightly more than 10% of HMM’s roughly 900 employees in South Korea. The main contingent consists of around 90 existing Busan-based employees, including those from the Busan Sales and Operations Office, while around 30 employees—including staff from the Safety and Health Division and the Maritime Affairs Office—have moved from Seoul.
Labor and management are discussing which additional teams will relocate and how many employees will move. Some functions, including sales and finance, are expected to remain in Seoul, given the need to stay accessible to the Seoul metropolitan area, where major cargo owners and financial institutions are concentrated. The pace of further relocations and when the effects of the head-office move become apparent are expected to depend on how many employees wish to work in Busan.
Progress on the move to Busan is also expected to be linked to future privatization discussions. The Korea Development Bank and the Korea Ocean Business Corporation have said they would prioritize the move to Busan and then discuss a sale. The timing of follow-up discussions is also expected to be affected by the scope and pace of organizational relocation after the temporary headquarters begins operating.
[email protected] Jeong Won-il Reporter