Minister Moon Sung-hyuk: "HMM Fund Recovery Expected to Be Over 3 Times... Sale Timing 2-3 Years Later"

Moon Sung-hyuk, Minister of Oceans and Fisheries, is being interviewed at the Ministry of Oceans and Fisheries in the Government Complex Sejong on the 25th. / Sejong = Photo by Kang Jin-hyung aymsdream@

[Asia Economy Sejong=Reporter Dongwoo Lee] Moon Seong-hyeok, Minister of Oceans and Fisheries, said on the 2nd regarding HMM, "If we recover the public funds, I think we can collect 3 to 4 times the amount invested." Earlier, the government injected 7.4 trillion won of public funds to revive HMM and carried out restructuring, resulting in sales of 13.8 trillion won and operating profit in the 7 trillion won range last year.

Minister Moon held a press conference at the Government Complex Sejong on the same day and said, "The five-year shipping reconstruction plan program was very successful," adding, "Although many places received public funds, I heard that a success story like HMM is unprecedented."

Minister Moon explained, "Regarding the recovery of public funds, considering the current stock price and situation, if we predict an appropriate level, it is possible to recover about 3 to 4 times the funds," and added, "We will consult with related ministries to prepare a plan for the phased disposal and recovery of non-management shares."

He continued, "HMM escaped from 36 consecutive quarters of losses in the second quarter of 2020, and the debt ratio, which was 362% before the implementation of the shipping reconstruction plan, has decreased to 72%, about one-fifth," emphasizing repeatedly that "the corporate credit rating improved from a speculative grade 'BB' or below to an investment grade 'BBB-', making it possible for the company to raise funds on its own," marking the first successful case of restructuring.

However, Minister Moon refrained from making specific remarks about the timing of privatization. He said, "There are tasks to be carried out before privatization, such as the disposal and stock conversion of non-management shares held by KDB Industrial Bank and Korea Ocean Business Corporation," and added, "A period of 2 to 3 years is needed to stabilize management conditions."

The Ministry of Oceans and Fisheries plans to announce a mid- to long-term development roadmap for the shipping industry next month, following the successful stabilization of HMM under the first phase of the shipping reconstruction plan. This effectively marks the transition to the second phase of shipping reconstruction. Minister Moon emphasized, "Due to the nature of the industry, we will focus on preparing growth strategies to maintain competitiveness even in adverse conditions."

Meanwhile, the Ministry of Oceans and Fisheries forecasted that the impact on the shipping industry from Russia's invasion of Ukraine would be minimal. Minister Moon said, "Currently, they are operating normally, but if SWIFT sanctions are imposed, it will not be easy for shipping companies to operate," and added, "We will communicate closely with the industry to prevent disruptions in import and export logistics."

Regarding concerns from the fisheries industry about damage related to joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), he said, "We will prepare sufficient compensation measures so that fishermen and related industry workers do not feel harmed."

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