Shipowners’ Association Submits Request Urging POSCO to Withdraw HMM Acquisition Plan

Formal Request Submitted to Chairman Chang Inhwa on October 2

The Korea Shipowners’ Association announced on October 13 that it had submitted a formal request to POSCO Group Chairman Chang Inhwa on October 2, urging the company to completely withdraw its plan to acquire HMM. The association explained that the reason for this request is that an aggressive entry by a steel company into the shipping industry could have a negative impact on the industrial ecosystem.

The association stated, "The current global shipping market is an oligopoly dominated by ultra-large shipping companies, making shipping expertise more important than ever." It expressed concern that "if POSCO, which is focused on the steel industry, acquires HMM, not only will it be difficult to ensure professional management, but if POSCO's management deteriorates, the entire domestic shipping industry could be adversely affected."

The association also referenced POSCO's past precedent of withdrawing from the shipping business after acquiring Geoyang Shipping and subsequently selling it to Hanjin Shipping. Additionally, it cited the case of Vale, a Brazilian iron ore exporter, which previously entered the iron ore shipping business but failed.

The association warned, "The acquisition of HMM poses a greater risk of damaging the shipping ecosystem than it offers in terms of logistics cost savings," adding, "It could undermine the foundation of Korea's shipping ecosystem and ultimately inflict serious harm on the entire import and export industry."

Finally, the association called on POSCO to fulfill the memorandum of understanding (MOU) signed with the Korea Shipowners’ Association in 2022. This MOU includes a commitment to refrain from entering the shipping industry in compliance with the Shipping Act and the Fair Trade Act.

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