On August 13, Hahn & Company, a major South Korean private equity firm, announced that two South Korean shipping companies under its control—SK Shipping and H-Line—had reached an agreement to exchange assets and long-term contracts involving 16 liquefied natural gas (LNG) carriers and 12 oil tankers.
Under the agreement, SK Shipping will acquire 16 LNG carriers and their associated long-term charter contracts from H-Line; in exchange, SK Shipping will transfer 12 oil tankers—along with their related long-term charter contracts—and approximately $300 million in cash to H-Line. The tanker portfolio comprises 11 Very Large Crude Carriers (VLCCs) and one MR product tanker, with the financing debt associated with these vessels being transferred alongside the assets.
Upon completion of the transaction, the size of SK Shipping’s LNG carrier fleet will double to 32 vessels, making it the largest LNG carrier operator in Asia and the third-largest globally; the company also operates 14 liquefied petroleum gas (LPG) carriers.
SK Shipping stated that the 16 LNG carriers acquired from H-Line are covered by long-term charter agreements with major energy companies—including Vitol, ExxonMobil, Petronas, and QatarEnergy—with most contracts extending beyond 2035.
The fleet restructuring plan between SK Shipping and H-Line was initially announced in South Korea; following the asset swap, H-Line will transition into an operator focused on oil tankers and bulk carriers, while SK Shipping will formally exit the oil tanker business.
Hahn & Company stated that this restructuring will enhance the scale and operational efficiency of both SK Shipping and H-Line, while enabling SK Shipping to capitalize on the growing demand for LNG. Hahn & Company plans to rename SK Shipping as “K-LNG.”
Earlier this year, Hahn & Company sold 10 Very Large Crude Carriers (VLCCs) from SK Shipping’s tanker fleet—along with their associated long-term charter contracts—to fellow South Korean shipowner Pan Ocean for 973.7 billion KRW (US$694 million). Given that the transaction involves the transfer of long-term freight contracts and affects several major South Korean cargo owners, the deal is expected to close by April 11, 2027.
According to reports, Hahn & Company acquired approximately 80% of SK Shipping’s shares from SK Group in 2018. Since then, SK Shipping has gradually moved away from the highly volatile spot market business and transitioned toward a fleet of vessels supported by long-term charter contracts. The other party to this transaction, H-Line, was established by Hahn & Company in 2014 based on Hanjin Shipping’s long-term dry bulk business and acquired HMM’s bulk shipping business in 2016.
This latest restructuring comes after negotiations broke down in 2025 regarding SK Shipping’s sale of its tanker and bulk carrier assets to HMM. As the two parties were unable to bridge their valuation differences, HMM ultimately chose to withdraw from the negotiations.