Hyundai Merchant Marine (HMM)’s major shareholders and the South Korean government are planning to relocate the company’s headquarters from Seoul to Busan, a move strongly opposed by HMM’s shore-based union (hereinafter referred to as “the union”). The union has declared it will take legal action and may initiate a full-scale strike.
Major shareholders of HMM include Korea Development Bank (KDB) and Korea Ocean Business Corp, each holding approximately 35% of the shares. A KDB executive told reporters, “The relocation to Busan will be finalized at the shareholders’ meeting in March.”
The union stated that shareholders may appoint three external directors supporting the relocation at the regular shareholders’ meeting in March; a board meeting will be convened in April to propose amendments to the articles of association for changing the headquarters address; and the relocation plan will be finalized at a special shareholders’ meeting in May.
As HMM’s shareholders plan to expedite board and shareholder votes, the dispute with the union could escalate into large-scale labor action. The union warned, “If the bylaws are amended during negotiations, we will file lawsuits against the directors and apply for injunctions to suspend the validity of special resolutions passed at shareholder meetings or prevent relocation.”
HMM’s relocation plan is reportedly an important part of the South Korean government’s strategy to make Busan a “maritime capital”, a strategy that originated from President Lee Jae-myung’s campaign promise.
Union leaders believe the relocation is politically motivated and will threaten the Seoul headquarters’ employment opportunities, recruitment efficiency, and management effectiveness, which rely on its talent pool and global network. The union warns that a forced relocation will disrupt employee lives, potentially leading to talent loss and damaging the company’s competitiveness.
In response to the headquarters relocation plan, the union has formulated an action plan: rush-hour rallies will commence on March 11, a press conference will be held on March 26, and a general union assembly will convene on April 2 to initiate a resolution rally for a general strike. The union stated that if the situation escalates, daily rallies may be implemented.