Shipowners’ Association Warns Against Hyundai LNG Shipping Sale to Indonesia, Urges Retention as National Carrier

The Korea Shipowners’ Association stated on November 26 that Hyundai LNG Shipping must remain a national shipping company in order to secure the country’s economic and energy security sovereignty, in response to the ongoing efforts to sell Hyundai LNG Shipping overseas.

According to the association, IMM Private Equity and IMM Investment, the parent companies of Hyundai LNG Shipping, are currently seeking to sell Hyundai LNG Shipping to a subsidiary of Sinar Mas Group, a major Indonesian conglomerate.

The association expressed concern that if the sale is completed, core energy transport assets, information assets such as know-how in liquefied natural gas (LNG) transportation, and long-term transport rights with Korea Gas Corporation-national assets that are impossible to quantify-will be transferred overseas. The association further warned that this would accelerate the decline in Korea’s LNG cargo retention rate (transport market share) and pose a serious threat to the LNG supply chain.

The association stressed that the government has included in its national policy agenda the goal of maintaining a 70% or higher utilization rate of national-flagged vessels for core energy transport and preventing the overseas sale of vessels, and that the proposed sale runs directly counter to these core policy objectives.

Hyundai LNG Shipping is the largest domestic carrier specializing in liquefied gas transport, operating 12 LNG carriers and 6 liquefied petroleum gas (LPG) carriers, among others.

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