The government is reportedly pushing for a merger between Hyundai Merchant Marine, the top in the shipping industry, and SM Line, the second. The government, which expected SM Line to face a managerial crisis due to the worsening shipping industry, seems to have decided that the integration would be a solution.
However, not only SM Line and Hyundai Merchant Marine but also KDB Bank, Hyundai Merchant Marine’s major shareholder, showed negative opinions. As a result, the integration process is now facing a stumbling block.
The Ministry of Oceans and Fisheries, which is in charge of promoting the shipping industry, has stepped up as an intermediary in the process of integrating Hyundai Merchant Marine and SM Line. As global competition in the shipping industry is becoming stiff to expand cargo capacity (shipbuilding capacity), the ministry believes that mid-sized shipping companies may face a crisis in management.
Read more at: Korea IT Times(http://www.koreaittimes.com)