The acquisition battle for HMM, South Korea’s state-owned shipping giant (formerly Hyundai Merchant Marine), has heated up once again. Two years after its initial sale attempt failed, Dongwon Group, the nation’s largest fisheries company, has signaled its intention to restart the acquisition, drawing market attention.
South Korean media reports indicate that Dongwon Group has formed a special task force to prepare for a potential second round of bidding for HMM. Reports suggest that potential bidders including South Korea’s steel giant POSCO, shipbuilding giant HD Hyundai, and Hanwha Group are conducting financial assessments in response to Dongwon Group’s preemptive move.
HMM’s predecessor was Hyundai Merchant Marine, which faced severe financial difficulties in 2016 and was subsequently taken over by creditors including the Korea Development Bank (KDB), entering a state-controlled phase.
Dongwon Group’s interest in acquiring HMM has remained consistent. In 2023, during HMM’s first sale attempt, Dongwon Group expressed its acquisition intent and participated in the main bidding. It competed against a consortium led by Harim Group and involving private equity firm JKL Partners, with both parties offering $4.2 billion and $4.3 billion respectively. Dongwon Group ultimately lost out due to its slightly lower bid.
However, the Harim-JKL Partners consortium and creditors ultimately failed to reach an agreement on HMM’s acquisition offer due to disagreements over core terms, and negotiations between the two parties broke down in February 2024.
The initial sale failure suggests a new round of acquisition battles for HMM may be imminent. In response, a representative from the TECO Group stated: “We have established a special task force to conduct research and prepare for the potential resumption of HMM’s sale. As the specific timing and amount of the acquisition remain undetermined, a detailed assessment is currently not feasible.”
According to reports, HMM is South Korea’s largest shipping company, with its market valuation soaring to 10 trillion won (approximately $6.8 billion). It has now become the eighth shipping company globally to join the “Million TEU Club”. Alphaliner data indicates that HMM’s current total capacity stands at 1,007,180 TEU, having doubled its operational capacity over the past five years.
Currently, HMM is steadily advancing according to its 2030 Mid-to-Long-Term Strategy released in September 2024. The company plans to invest 23.5 trillion won (approximately $17.48 billion) to expand its fleet: by 2030, its container fleet size will nearly double, while its tanker and dry bulk fleets will triple in scale compared to current levels.
To advance its fleet expansion plan, HMM confirmed in October 2025 the order for 12 13,000 TEU LNG dual-fuel container ships and 2 VLCCs. Notably, this marks HMM’s first major newbuilding project in seven years since its 2018 “large container ship order,” when the company placed orders for 20 container ships across three Korean shipyards—including 12 24,000 TEU vessels and 8 16,000 TEU vessels.
Regarding the newly disclosed shipbuilding projects, an HMM representative stated: “Against the backdrop of intensifying competition in the global shipping market, this large-scale investment represents a strategic decision to simultaneously achieve two key objectives: expanding our fleet capacity and enhancing our environmental competitiveness. The company will continue to solidify the foundation for stable growth in accordance with its 2030 mid-to-long-term roadmap.”