KDB Industrial Bank Expresses Concern Over HMM Labor Dispute: "Find a Solution Quickly"

[Asia Economy Reporter Jo Gang-wook] The Korea Development Bank (KDB) has expressed serious concerns regarding the labor-management conflict over wage negotiations at HMM (formerly Hyundai Merchant Marine).

On the 17th, KDB stated in a press release, "We express serious concerns about the possibility of disruptions in shipping logistics due to potential industrial actions arising from wage negotiations between HMM labor and management."

According to KDB, HMM entered into joint management with creditors including KDB and the Korea Ocean Business Corporation in October 2018, agreeing between labor and management to suppress wage increases as much as possible until business normalization is achieved. The process of business normalization through joint management is still ongoing.

KDB explained, "Although HMM is expected to record operating profits for the first time after nine consecutive years of operating losses, continuous support from creditors is necessary to enhance competitiveness. Additionally, uncertainties due to the COVID-19 pandemic persist domestically and internationally, and domestic export companies are facing many difficulties due to global freight rate and shipping capacity volatility."

Furthermore, KDB urged, "Considering the large-scale public funds provided since 2018 to improve HMM's competitiveness and the need for smooth shipping logistics support to revitalize the national economy, we ask HMM, as the representative national deep-sea shipping company, to take responsibility and for labor and management to work together to promptly find a resolution."

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