Lee Jae-myung said on social media that South Korea’s largest shipping company, HMM, will move its headquarters to Busan soon, drawing attention to whether the company will put a charter amendment on the agenda for its March shareholders meeting. HMM’s union said it will respond with a hard-line fight if the company tries to amend the charter and push the move without labor-management talks.
According to political circles on the 19th, Lee reposted a message on X (formerly Twitter) by Jeon Jae-su and wrote, “Following the relocation of the Ministry of Oceans and Fisheries and the establishment of a maritime court, we will also set up an investment corporation for the Southeast region, and we will soon relocate HMM as well.”
Moving HMM’s headquarters from Seoul’s Yeouido district to Busan was one of Lee’s key presidential campaign pledges.
HMM’s charter stipulates that its headquarters is in Seoul. To relocate to Busan, the company must first amend its charter through a shareholders meeting.
A charter amendment requires a special resolution backed by at least two-thirds of the shareholders present. But government-affiliated institutions including the Korea Ocean Business Corp., Korea Development Bank and the National Pension Service hold about 70% of HMM shares, meaning the government could change the charter and move the headquarters if the item is put to a vote.
Attention has now shifted to HMM’s board. The company’s inside and outside directors, including CEO Choi Won-hyuk, were all appointed before the Lee administration took office. Still, because they entered the board with recommendations from major shareholders, they are seen as not fully independent from the influence of the Korea Ocean Business Corp. and Korea Development Bank.
Investment banking sources said there are no clear signs yet that HMM’s board plans to place a charter amendment on the agenda for the March meeting. However, the board could still convene in late February or early March and submit the item to align with the Lee administration’s pace.
HMM’s onshore union, meanwhile, has signaled strong opposition to a move without its consent. It argues that rushing to relocate the headquarters of the country’s largest shipping company ahead of June local elections, without a thorough review of operational efficiency, makes little sense. About 800 people currently work at HMM’s Yeouido headquarters.
With revisions to the Trade Union and Labor Relations Adjustment Act, known as the “Yellow Envelope Act,” set to take effect in March, the possibility of a general strike by HMM’s onshore union also remains open.
An industry official said, “If the Lee administration wants to push ahead with relocating HMM’s headquarters to Busan without disruption, it first needs to persuade HMM employees,” adding, “If it tries to move a corporate headquarters without employees’ consent, as in the past attempt to relocate Korea Development Bank to Busan, it will face significant backlash.”
* This article has been translated by AI.
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