The sale of HMM, Korea's No. 1 shipping company, ultimately fell through. This is because shareholder contract negotiations between Harim Group, KDB Bank, and Korea Ocean Business Corporation failed.

Korea Development Bank and Korea Ocean Business Corporation announced on the 7th that the sale of HMM management rights has finally collapsed.

Korea Development Bank and Haejin Engineering & Construction explained that they faithfully engaged in dialogue with the preferred bidder during the seven-week negotiation period under mutual trust, but the negotiations ultimately broke down due to conflicting views on some issues.

Previously, Korea Development Bank and Haejin Engineering & Construction selected the Pan Ocean-JKL consortium as the preferred negotiating party. The two sides have been negotiating the stock sale agreement and shareholder agreement since December 20 of last year. The two sides extended the negotiation period once and continued negotiations until midnight on the 6th, but were unable to narrow their differences.

As the sale was canceled, Korea Development Bank and Haejin Engineering & Construction will remain as major shareholders with a 57.9% stake in HMM. Korea Development Bank and Haejin Engineering & Construction have not yet confirmed the timing of HMM's resale.

The investment banking (IB) industry predicts that it will not be easy for Korea Development Bank and Haejin Corporation to pursue resale in the short term. This is because Haejin Engineering & Construction's position of trying to maintain influence even after the sale can act as a significant variable for companies wishing to be acquired.

An official familiar with the transaction pointed out, “The transaction has become difficult as Haejin Engineering & Construction continues to try to comply with its difficult demands. If the government’s influence remains after the sale, no large company will try to acquire HMM.” .