Is HMM’s Headquarters Move to Busan a Political Stunt? Insights from Industry Experts

(The CEN News / Reporter Lee Seung-ryeol)

With HMM’s move to Busan confirmed, the People Power Party’s campaign in the Busan mayoral race has gone on the offensive, warning the relocation could amount to a hollow gesture.

Former Oceans and Fisheries Minister Cho Seung-hwan, who heads Park Hyung-joon’s Maritime Capital Task Force, issued a statement on May 8 questioning whether the agreement represents a genuine move for Busan or an election-year political stunt.

Cho said he welcomed HMM’s decision to relocate its headquarters to Busan but cautioned that the company might simply change its registered address while retaining core operations elsewhere, effectively creating a “ghost headquarters.”

Stakeholders inside and outside the local shipping industry have expressed similar concern, saying the real issue is how many employees will actually relocate.

Cho pointed out the agreement contains no concrete details on the scale of the move, its timetable, or which departments will transfer. Apart from the CEO’s office relocating within the year, he said, most items are left for later negotiation — raising expectations among Busan residents without firm commitments.

He also noted that government-linked entities such as the Korea Development Bank (KDB) and the Korea Ocean Business Corporation hold more than 70 percent of the shares, arguing that visible government involvement makes it hard to characterize the outcome as a purely voluntary agreement between labor and management.

“What HMM needs is not a flashy landmark building but global competitiveness,” Cho said, urging the company to prioritize fleet expansion, digital transformation and strengthening the broader shipping ecosystem.

HMM held an extraordinary shareholders’ meeting the same day and approved an amendment to its articles of association to change its head office location to Busan.

(The CEN News) Lee Seung-ryeol ottnews@kakao.com