HMM CEO Kim Kyung-bae, fourth from left, poses with employees during a ceremony to declare the company's new vision at its headquarters in Yeouido District in Seoul, Thursday. Courtesy of HMM

By Park Jae-hyuk

HMM, formerly known as Hyundai Merchant Marine, announced on Thursday that it will increase its cargo capacity to 1.2 million TEU by 2026 from the current 820,000 TEU, investing over 15 trillion won ($11 billion) in ships, terminals and logistics facilities to become a top-tier global shipping firm.

The cash-strapped company currently under the control of the state-run Korea Development Bank (KDB), emphasized that 15 trillion won is the minimum amount of investment needed for its survival, claiming that it has become solvent enough over the past few years to make such a large-scale investment.

The shipping firm also said its long-term investment plan will be completed, no matter when the government privatizes the company.

"We have yet to discuss with our major shareholders about when and how they will privatize our company, but we will make the investment, regardless of this issue," HMM CEO Kim Kyung-bae said in a press conference held at the company's new headquarters on Yeouido, Seoul, on the occasion of 100 days since his appointment.

"I will do my best for HMM not to damage our country anymore," he added.

The CEO ruled out the possibility of SM Group becoming his company's largest shareholder, even though the conglomerate has increased its stake in HMM throughout this year to 6.17 percent, becoming the third-largest shareholder.

"SM said its investment is not intended to become involved in management," he said. "We believe its claim, so we plan to make efforts for the company to profit as one of our investors."

Although its minority shareholders have complained recently about its falling stock price, Kim confidently believes its shareholder value will be enhanced in the long run, once the company succeeds in improving its financial soundness.

In response to concerns that the global shipping industry has peaked, HMM said it will be able to avoid potential risks by increasing long-term contracts.

As the former CEO of Hyundai Glovis (which offers both maritime and land logistics services), Kim also unveiled HMM's plan to grow into a comprehensive logistics firm in line with the global trend. However, his company doesn't have any plan in place currently to offer air transport services, unlike its Danish rival Maersk.