Korean Air’s HMM officially launches privatization process

Two of HMM’s major shareholders – the Korea Development Bank (KDB) and the Korea Ocean Business Corporation (KOBC) – have announced that they will form a sale advisory group to sell the Korean government’s stake in HMM

It is reported that the Korea Development Bank (KDB) and the Korea Ocean Business Corporation (KOBC) plan to select one company in each of the three fields of investment, accounting, and legal affairs to form an advisory group, and announce the preferred bidders before March 22.

The Korea Development Bank (KDB) and the Korea Ocean Business Corporation (KOBC) are the two largest shareholders of HMM, holding 20.69% and 19.96% of the shares of HMM respectively.

As early as September last year, KDB’s new chairman, Kang Seok-hoon, publicly stated that HMM’s finances and operations had been normalized and that state support was no longer needed, and the bank must divest its HMM stake as soon as possible.

HMM, then on the brink of bankruptcy, successfully renegotiated its long-term lease nearly seven years ago to persuade creditors led by the Korea Development Bank (KDB) to convert the debt into equity.

The Korea Development Bank (KDB) said, “HMM has improved its financial structure and expanded its business scope through joint management with KOBC. We will do our best to ensure that the sale process goes smoothly with stakeholders. Once the advisory group is established, we will Discuss the overall strategy and then, in consultation with the relevant agencies, develop a substantive timeline for the sale

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