HMM Achieves Operating Profit of 7 Trillion Won... "Largest Performance Since Establishment"

Improved Performance Due to Rising Ocean Freight Rates
Kim Kyung-bae, Former Hyundai Wia President, Appointed as New CEO

[Asia Economy Reporter Yoo Hyun-seok] HMM announced on the 14th that it recorded its highest-ever performance since its establishment, with sales of KRW 13.7941 trillion and operating profit of KRW 7.3775 trillion last year. This represents increases of 115.01% and 652.21% respectively compared to the previous year. Net profit also rose by 4,196.51% to KRW 5.3262 trillion.

The main factors behind the record performance improvement were the continued impact of COVID-19 and congestion at U.S. ports. As a result, freight rates increased across all routes, including Asia to the Americas, Europe, and other regions.

In particular, the fourth quarter of last year is considered a seasonal off-peak period for the container segment. However, increased cargo volume on the Asia-Americas route, the year-end season, Black Friday, and push shipments in preparation for the 2022 Lunar New Year led to growth. Consequently, the Shanghai Containerized Freight Index (SCFI) rose sharply from 2,129 points at the end of December 2020 to 5,046 points at the end of last year.

A company official stated, "The significant effect of deploying 20 ultra-large vessels, including 12 of the world's largest 24,000 TEU (1 TEU = one 20-foot container) class container ships, was achieved through HMM's continuous cost-cutting efforts and active support from government agencies."

HMM forecasts that global trade uncertainties will continue in the first half of this year due to ongoing COVID-19 and Omicron spread, as well as persistent conflicts between the U.S. and China.

However, 12 ultra-large 13,000 TEU-class container ships currently under construction at Daewoo Shipbuilding & Marine Engineering and Hyundai Heavy Industries are scheduled for delivery completion in the first half of 2024. Along with this, HMM plans to focus on securing stable additional cargo, strengthening internal capabilities, and improving profitability through business structure reforms.

Meanwhile, Kim Kyung-bae, former president of Hyundai Glovis, has been appointed as the new head of HMM. Born in 1964, Kim joined Hyundai Precision in 1990, worked at Hyundai Construction in 1992, and served as deputy chief of the secretary office to Honorary Chairman Chung Ju-yung of the Hyundai Group in 1998. He held CFO positions at Hyundai Motor America and Glovis America, and served as head of planning and human resources at Hyundai Mobis.

In 2007, he was appointed secretary general (executive director) and head of global strategy to Honorary Chairman Chung Mong-koo of Hyundai Motor Group. At age 45 in 2009, he became CEO of Hyundai Glovis and led the company for eight years. In 2018, he was promoted to president of Hyundai Wia.

The term of CEO Bae Jae-hoon, who has led HMM for the past three years, ends on March 26. He was appointed in March 2019 for a two-year term and, recognized for business normalization, successfully extended his term by one year last March.

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