HMM Headquarters to Relocate from Seoul to Busan...Union Warns of General Strike

HMM, the largest container shipping company in Korea, has officially begun the process of relocating its headquarters to Busan. The labor union has responded with a hardline stance, warning of a general strike to stop the move.

An HMM container ship is docked at Busan Port. Photo by Jin-Hyung Kang aymsdream@

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According to the union on March 31, HMM held a board meeting the previous day and passed resolutions to amend its articles of incorporation and to convene an extraordinary general meeting of shareholders.

HMM's articles of incorporation currently state that its headquarters is located in Seoul, but the board approved a proposal to change the location to Busan.

The voting procedure for this proposal will take place at the extraordinary general meeting of shareholders scheduled for May 8. However, since HMM's largest shareholders-the Korea Development Bank (35.42%) and Korea Ocean Business Corporation (35.08%)-together hold over 70% of the shares, many analysts believe the relocation to Busan is highly likely.

The relocation of HMM's headquarters to Busan is being promoted as a national policy task by the government, including the Ministry of Oceans and Fisheries, as part of President Lee Jaemyung's campaign pledge.

Jung Sungcheol, head of the HMM union branch, said in a phone interview, "There is still time for negotiations before the extraordinary general meeting on May 8, but if things do not go well, we will have no choice but to proceed with a general strike," adding, "It is also problematic that the Minister of Oceans and Fisheries had said he would observe labor-management talks, but is now pushing ahead with the plan as is."

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