SEOUL, April 30 (AJP) - South Korea’s HMM, the world’s eighth-largest shipping company, said Friday that its labor and management have reached an agreement to relocate the company’s headquarters to the southern port city of Busan, the country’s main maritime gateway, resolving a long-standing dispute that had raised concerns over labor strikes and disruptions to global logistics.
Busan, home to South Korea’s largest port, has been positioning itself as a maritime and logistics hub, with the government pushing to cluster shipping, finance, and related industries in the city. While the government expects the relocation to strengthen operational efficiency and create synergies with port infrastructure and maritime institutions in the city, concerned voices erupted from workers from government offices and companies, including HMM, who were worried about their families leaving their hometown to move to Busan.
The shipbuilder said that the agreement reflects a shared commitment to national priorities such as regional development and decentralization. HMM added that with the prolonged Middle East conflict continuing to strain global supply chains, the deal was reached to avoid a potential labor strike stemming from labor-management differences, which could have disrupted both domestic and international logistics and led to broader social and economic impacts.
Under the deal, HMM will complete legal procedures to change its registered headquarters following an extraordinary shareholders’ meeting scheduled for May 8. Afterward, the company will first relocate the CEO’s office, after which labor and management will begin detailed talks on the relocation, with a focus on business efficiency and potential synergies.
The company said the two sides had held multiple rounds of talks since the second half of last year but failed to reach an agreement, with tensions escalating recently as the union filed for mediation, pursued legal action against the CEO and warned of a possible strike.
The company also plans to push ahead with the construction of a landmark office building in Busan’s North Port area to support the local economy. Meanwhile, the company reported revenue of 10.89 trillion won ($7.9 billion) and an operating profit of 1.46 trillion won last year.
An official of HMM said the deal reflects national priorities and the company’s role as a national flag carrier, adding that with uncertainties now eased, it will focus on addressing external risks and strengthening its global competitiveness.
Founded in 1976, HMM operates a global network connecting more than 60 trade routes and over 100 ports across the Americas, Europe, the Middle East and Latin America. The company has secured container capacity exceeding 1 million twenty-foot equivalent units (TEUs) and aims to expand this to 1.55 million TEUs by 2030, alongside investments in eco-friendly vessels and digital transformation.
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