Media reports earlier this week said that South Korea’s Hyundai Merchant Marine, the world’s 15th largest container line in terms of vessel capacity, is asking for $8.9 billion in funding from state backed Korea Development Bank through 2022.
Recent reports that South Korean ocean carrier Hyundai Merchant Marine (HMM) is asking for almost $9 billion in funding over the next five years to expand and grow the company into a top 10 container line simply aren’t accurate, the company said this week.
The rejoinder came in response to a Business Korea article earlier this week reporting that HMM, the world’s 15th largest container line in terms of vessel capacity, is asking for $8.9 billion in funding from state backed Korea Development Bank through 2022 in order to grow into the eighth-largest container line.
According to Business Korea, $5 billion of the cash infusion would be spent on large new boxships, while about $3 billion would be dedicated to buying containers and $900,000 would be earmarked for the takeover of overseas container terminals.
But in comments to industry publication Splash 24/7, an HMM representative threw cold water on the report, saying that although HMM has reviewed and discussed various ways with industry experts to grow further as a global carrier, the $8.9 million figure is false.
“There has been no internal decision on the exact amount on the investment needed for mid- and long-term investment including acquiring new vessels, new containerships and HMM has not made any request to KDB,” a company spokesperson who wasn’t identified by name, is said to have told Splash on July 27.
HMM, based in Seoul, South Korea, posted a $749 million operating loss in 2016 and is projected to lose about $360 million this year. In May, it reported an operating loss of $117 million for the first quarter of 2017.