Opposition mounts to proposed sale of Hyundai LNG Shipping to Indonesian firm
Thursday, December 18 2025 - 07:45 AM WIB
Controversy has reignited in South Korea over the potential sale of Hyundai LNG Shipping to an Indonesian buyer, after residents and civic groups in Busan staged protests against private equity firm IMM’s plan to sell the LNG carrier operator to a Sinar Mas affiliate, The Korea Times reported.
Critics argue the proposed transaction threatens President Lee Jae Myung’s maritime policy and have urged the government to block the deal, warning it could undermine national energy security.
“The sale could open the door to foreign takeovers of other private equity-owned shipping firms such as SK Shipping and H-LINE Shipping, destabilising Korea’s energy transport infrastructure,” a Busan civic group said on Tuesday.
SK Shipping and H-LINE Shipping, both owned by private equity firm Hahn & Company, recently announced plans to relocate their headquarters to Busan following the Ministry of Oceans and Fisheries’ move to the city. The government has said the relocation is part of a broader strategy to develop Busan into a maritime hub ahead of the anticipated expansion of Arctic shipping routes.
“If a foreign buyer replaces skilled, high-paid Korean crews with lower-cost foreign workers, Busan’s job market could collapse,” the civic group said. “Selling Hyundai LNG Shipping to a foreign company would also undermine the government’s goal of having Korean carriers transport at least 70% of the country’s core energy imports.”
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Similar concerns have been raised by the Korea Shipowners’ Association and the Federation of Korea Maritime Industries, both of which warned that the sale could jeopardise energy security given Hyundai LNG Shipping’s role in transporting LNG for state-run Korea Gas Corp. (KOGAS).
IMM has rejected the criticism, saying Hyundai LNG Shipping accounts for less than 6% of KOGAS’s total LNG imports and would remain a Korea-registered, profit-oriented company regardless of changes in ownership. IMM signed a share purchase agreement on Nov. 27 with a Sinar Mas affiliate.
The private equity firm said the sale was part of a normal investment cycle, noting that funds typically exit portfolio companies within five years to return capital to investors. IMM acquired Hyundai LNG Shipping 11 years ago.
The Ministry of Oceans and Fisheries said the transaction may require government approval, depending on its structure.
“We are closely monitoring the process as many details remain unconfirmed,” said the head of the ministry’s shipping policy division. “We will assess whether the sale could disrupt LNG transport or adversely affect the profitability of Korean carriers.”
IMM previously faced opposition in 2023 over an aborted attempt to sell Hyundai LNG Shipping to a European company, which collapsed after the parties failed to agree on price amid government concerns. Former owner HMM was also seen as a potential buyer, but the container carrier was unable to submit a competitive bid as it continues to seek a new owner.
Editing by Reiner Simanjuntak