Korean shipowning universe in for a shake-up as private equity looks for an exit

The Korean shipowning universe is in for a shake-up with private equity keen to cash out of the sector.

Hahn & Company, the biggest private equity player in Korean shipping, is seeking a buyer for both the tanker division of SK Shipping as well as H-Line Shipping, one of the country’s largest shipowning entities.

Likewise, two local private equity backers of dry bulk concern Polaris Shipping are also testing the market, having employed Lazard Asset Management to investigate a possible sale.

Also due for change is the ownership of HMM, South Korea’s flagship carrier, which has been under state control for the past 10 years, with its creditors now starting a privatisation process.

Cash-rich HMM, which has laid out plans to grow its dry bulk fleet by more than five-fold by 2026, is being tipped as a likely bidder for some of the assets that are being put up for sale in Seoul this year.