Bae Jae-hoon Steps Down as HMM CEO... Creditors Begin Successor Selection Process

Term expires on the 26th of next month after 3 years... Successor outline expected by mid-this month at the earliest

Hae-jun Baejae, CEO of HMM, is being interviewed by Asia Economy on the 27th. / Photo by Mo Hanam munonam@

[Asia Economy Reporter Lee Hyeyoung] HMM CEO Bae Jae-hoon is stepping down after a three-year term.

According to industry sources on the 11th, HMM's creditors held a management recommendation committee meeting on the 9th to discuss the selection of Bae's successor.

Although there was talk of a possible renewal due to Bae's outstanding management performance, including improved HMM results since his appointment, he ultimately stepped down as the successor selection process proceeded.

Bae's term expires on the 26th of next month. Appointed in March 2019, Bae was recognized for his role in normalizing HMM's management and successfully extended his term by one year last March, leading HMM for three years.

However, he failed to mediate various disputes arising from labor union wage negotiations, and with added M&A issues, he did not secure an additional term extension. The Korea Development Bank's plan to sell its HMM shares also appears to have influenced Bae's departure.

Earlier, Lee Dong-geol, chairman of the Korea Development Bank, said at a press briefing last year, "The joint management by the Korea Development Bank and the Korea Ocean Business Corporation will end by the end of this year, and from next year, the Korea Ocean Business Corporation will take full charge," adding, "HMM's recent performance has improved significantly, so it might be time for us to step back." He continued, "The Korea Development Bank and the Korea Ocean Business Corporation hold over 70% of the shares, and since managing all of them is nearly impossible, it would be preferable to put only the controlling shareholder shares on the market for sale in stages to facilitate an easy sale."

Subsequently, industry analysts suggested that Bae, who lacks M&A experience, would find it difficult to oversee the entire sale process.

Former senior executives from the merchant shipping industry are being considered as Bae's successors. They have completed interviews with the management recommendation committee and are reportedly awaiting the final results.

The specific outline is expected to be announced as early as mid-this month or by the 14th of next month at the latest, as the shareholders' meeting is scheduled for the 29th of next month. If a new CEO is to be elected, the agenda must be submitted at least two weeks before the shareholders' meeting.

HMM stated regarding the appointment of the successor CEO, "Nothing has been finalized yet."

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