[2020 National Audit] 4 out of 5 Busan Port New Terminal Sites Owned by Foreign Capital... Up to 80% Occupancy per Wharf

[Asia Economy Reporter Kwangho Lee] It has been revealed that four out of five new terminals at Busan Port are owned by foreign capital, occupying up to 80% of each pier.

According to data submitted by Busan Port Authority and analyzed by Democratic Party lawmaker Wi Seong-gon, a member of the National Assembly's Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee, among the five terminals operating at Busan Port New Port, the only one with a Korean company as the major shareholder is Pier 3, operated by Hanjin.

Busan Port New Port was developed under the national long-term plan to foster a Northeast Asia hub port, and currently operates five terminals with 21 berths. In the early stages of development, due to government financial difficulties, the project proceeded mainly with private investment from large domestic construction companies, but most shares were later sold to foreign capital.

At New Port Pier 1, Singaporean companies PSA Financial Pte. Ltd. and PSA Busan Port Investment Pte. Ltd. hold 80% of the shares; New Port Pier 2 is 66.03% owned by UAE-based DP World South Korea B.V.; New Port Pier 4 is 50% owned by Singaporean PSA Financial Pte. Ltd.; and New Port Pier 5 is 30% owned by Australian Macquarie Korea Infrastructure Investment Company, qualifying them as major shareholders.

In the case of New Port Pier 3, Hanjin holds 62.78% and Busan Port Authority holds 12.13%, making it the only terminal where a Korean company participates as a major shareholder.

Looking at operating profits over the past five years, New Port Pier 1 recorded 84.8 billion KRW, Pier 2 374.1 billion KRW, Pier 3 126.9 billion KRW, Pier 4 156 billion KRW, and Pier 5 42 billion KRW, totaling 783.8 billion KRW.

Lawmaker Wi stated, "This oligopoly of foreign capital leads to inefficiencies in port operations as terminals are run with a profit-centered approach, making it difficult to secure public interest," and added, "We must actively work to expand the share of domestic stevedoring companies so that both domestic and foreign stevedoring companies can grow in balance."

He further added, "The added value generated at the port should be reinvested in the domestic port industry to strengthen the foundation for the development of the port industry."

This content was produced with the assistance of AI translation services.