Hanchang-Hanchang Shipping Secures Liquidity through Sale of Hanchang Gangwon Ship... "Accelerating Discovery of Future Growth Engines"

[Asia Economy Reporter Jang Hyowon] Hanchang is restructuring its existing business structure, including the winding down of the cruise ferry business, which was hit hard by COVID-19, and expanding investments in new businesses such as ESG (Environmental, Social, Governance).

On the 22nd, Hanchang announced that its subsidiary Hanchang Shipping will sell the Hanchang Gangwon ship to Lyra Trading Limited. Through this, 6.2 billion KRW in sales proceeds will flow in from overseas, securing liquidity to promote new business ventures.

By winding down loss-making businesses such as the inter-Korean business, Hanchang plans to improve profitability and financial structure and promote a transformation focused on ESG businesses through active investment.

The ‘Hanchang Gangwon’ ship, for which the sales contract was signed this time, was purchased by Hanchang Shipping in 2019 with the goal of pioneering the northern sea routes between China, Russia, and Japan and operating a peace cruise ferry between Sokcho, Gangwon Province, its home port, and Wonsan Port in North Korea. The operation of the Hanchang Gangwon was scheduled to begin in the first half of 2020, but due to COVID-19, it has been docked at Sokcho Cruise Terminal for over two years without setting sail.

Currently, the COVID-19 Omicron variant is sweeping the world, making it difficult to predict the end of the pandemic. Additionally, since cruise ships were initially perceived as luxury travel but experienced mass COVID-19 infections early in the pandemic, the popularity of cruises is expected not to return to previous levels. Therefore, Hanchang judged that the future business viability is low.

A company official explained, “As we aim to achieve profitability in all business sectors this year, starting with the sale of the Hanchang Gangwon, we are accelerating the restructuring of our existing business structure by discontinuing Hanchang Shipping’s operations, which had been running deficits due to opportunity cost losses and maintenance expenses, focusing on securing financial soundness. At the same time, we expect momentum in securing future growth engines by expanding investments in ESG businesses such as low-temperature pyrolysis of waste plastics, which is being promoted as a new business, as well as pursuing other new businesses that can create synergy.”

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