Alphabiz - HMM Board Approves Charter Revision to Relocate Headquarters to Busan, Union Opposition Intensifies

Photo = HMM Container Vessel

[Alpha Biz= Kim Jisun] HMM, South Korea’s largest shipping company, has taken a major step toward relocating its headquarters from Seoul to Busan, with the board approving a charter amendment that effectively puts the move on a fast track.

According to the company on March 30, HMM’s board approved a proposal to change the registered headquarters location from Yeouido, Seoul, to Busan. The amendment will be submitted for final approval at an extraordinary general meeting of shareholders scheduled for May 8.

The relocation is widely seen as part of a broader government initiative to position Busan as a “maritime capital,” a key policy agenda of Lee Jae-myung ahead of the upcoming local elections in June. The move also follows the relocation of the Ministry of Oceans and Fisheries to Busan late last year, as well as similar announcements by major shipping companies such as SK Shipping.

While the proposal still requires shareholder approval, its passage is considered highly likely. State-backed institutions, including Korea Development Bank and Korea Ocean Business Corporation, collectively hold approximately 70% of HMM’s shares, effectively ensuring the outcome.

However, strong internal resistance is expected. HMM’s workforce consists of approximately 1,100 onshore employees and 900 seafarers, each represented by separate labor unions. The onshore union has already begun preparations for a strike, opposing the relocation plan.

The union argues that the company’s long-standing dual structure—strategic and commercial functions in Seoul and operational functions in Busan—has proven to be optimal over the past 50 years. It warns that relocating the headquarters could weaken national competitiveness, citing concerns that over 90% of domestic cargo owners and ship financing institutions are concentrated in the Seoul metropolitan area.

There are also fears of a potential exodus of key personnel, as many onshore employees are based in the capital region and may be unwilling to relocate.

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)