Harim Group vows to spend HMM reserves on boosting future competitiveness

[Courtesy of HMM]

South Korean agri-food company Harim Group, which was recently named as preferred bidder for HMM Co., said Tuesday that it believes the cash reserves held by HMM should be used to boost the global competitiveness of the country’s largest container shipper.

“The group firmly believes that the cash assets held by HMM should be spent on enhancing its future competitiveness and responding to the ongoing shipping recession,” Harim Group said in a statement. “Global shipping firms such as Mediterranean Shipping Company and Maersk have massive amounts of cash and are preparing for a shipping recession.”

Harim Group’s statement comes after concerns rose that it may use HMM’s reserves worth 10 trillion won ($7.6 billion) through dividends.

Harim Group instead proposed minimizing dividends to boost HMM’s immunity against industry downturn.

Harim also refuted rumors of a potential merger between its subsidiary Pan Ocean Co. and HMM, noting that it is committed to maintaining independent management and fostering fair competition among the affiliates.