HMM appoints Choi as chief amid industry uncertainty and privatisation challenges
Choi Won-hyuk, former head of LX Pantos for eight years, has been appointed to lead the South Korean shipping giant
New chief executive faces many challenges, including an extremely uncertain market environment, the company’s diversification strategy and a stalled privatisation
HMM has appointed Choi Won-hyuk as its new chief executive, as South Korea’s largest shipping company navigates critical challenges.
Choi, formerly the head of LX Pantos, a global logistics service provider based in Seoul, will replaces outgoing chief Kim Kyung-bae, who has led state-controlled HMM for three years.
At its board meeting last Friday, HMM also elected Lee Jung-yup, the current head of its container business unit, as vice-president.
The formal nomination of both executives will take place at HMM’s general shareholders’ meeting on March 26, after which they will each serve a two-year term.
Choi, born in 1960, previously served as vice-president of CJ Logistics before moving to LX Pantos, where he was chief executive from 2015 to 2023. From 2019 to 2023, he also served as president of the Korea Integrated Logistics Association.
Choi is taking the helm at a time when the shipping industry faces unprecedented uncertainty brought about by geopolitics and changed US trade policies. Additionally, he must deal with several internal challenges within HMM.
He will be overseeing HMM’s acquisition of SK Shipping’s assets, excluding its LNG transport business.
HMM has been named the preferred bidder and is conducting due diligence until March as part of its strategy to diversify beyond container shipping and expand its bulker operations.
Meanwhile, the privatisation of HMM remains a complicated issue.
In 2023, HMM’s main creditors — the Korea Development Bank and Korean Ocean Business Corporation — selected a Harim-JKL Partners consortium as the preferred bidder for the Won6.4trn ($4.3bn) sale of HMM.
However, the deal collapsed in 2024 due to financing concerns and disagreements over management control.
A new sale may be tougher as HMM’s value rose on strong 2024 results. Also, government stakeholders now own 67% after converting bonds, up from 57.9% during the previous bid.
