HMM readies orders as $632m state windfall lands

HMM readies orders as $632m state windfall lands

Hyundai Merchant Marine (HMM), South Korea’s flagship carrier, is about to receive a massive KRW720bn ($632m) in state funds to shore up its financial position as well as order a slew of boxships and tankers.

New state-backed ship finance vehicle Korea Shipping Co will aid HMM financially in various ways.

Some KRW150bn will be earmarked to buy HMM stocks, as well as buying debts convertible into the line’s stocks.

The new ship finance firm will buy 10 HMM boxships and lease them back to the line.

Moreover, HMM will order five boxships and up to three tankers later this year with money from the nation’s new financing program.

HMM, which went through massive restructuring last year, has risen to become South Korea’s number one carrier in the wake of the bankruptcy of Hanjin Shipping last August.

HMM senior management have recently outlined plans to try and double their global container marketshare to 5% in the coming years.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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1 Comment

  1. Avatar
    George
    February 14, 2017 at 11:04 am

    South Koreans on a bailout frenzy, not exactly in position to understand what they are thinking