Major shareholders of Hyundai Merchant Marine (HMM) and the South Korean government are pushing for the company to relocate its headquarters from Seoul to Busan. This move has faced strong opposition from the company's land-based labor union, intensifying labor-management tensions.

The union contends that the relocation is politically motivated, driven by the government's commitment to fulfill its strategy of establishing Busan as a “maritime capital.”

Union leaders pointed out that a forced relocation would threaten jobs, talent recruitment, and management efficiency at the Seoul headquarters, which rely on its talent pool and global network.

The union warned that this move would disrupt employees' lives, potentially leading to talent loss and damaging the company's competitiveness.

The union declared it will pursue legal action and may launch a full-scale strike in protest. It stated that if the articles of association are amended during negotiations, it will file lawsuits against directors and seek injunctions to suspend the effect of the shareholders' meeting's special resolution or block the relocation.

The union has formulated an action plan, which includes commuter-hour rallies starting March 11 and a press conference on March 26.

The union plans to convene a general assembly on April 2 and hold a rally to pass a resolution for a general strike. The union stated that if the situation escalates, daily rallies may be implemented.

HMM's major shareholders, Korea Development Bank (KDB) and Korea Ocean Business Corporation, each hold approximately 35% of the shares. A KDB executive stated, “The relocation to Busan will be finalized at the shareholders' meeting in March.”

Shareholders plan to appoint three external directors supporting the relocation at the March shareholders' meeting. The board will propose amendments to the articles of incorporation in April, with the final plan to be ratified at a special shareholders' meeting in May.