National Security Issue
Korea’s shipping industry and a seafarers’ union have called for a halt to the overseas sale of Hyundai LNG Shipping, the country’s largest carrier specializing in liquefied natural gas (LNG) transportation.
The Federation of Korea Maritime Industries (FKMI) put out a statement on May 8, taking issue with the overseas sale of Hyundai LNG Shipping. FKMI is an association of 54 groups related to shipping, ports, and logistics.
“The IMM Consortium’s recent push to sell off Hyundai LNG Shipping abroad must be stopped from a national economic and security perspective,” FKMI said in a statement. “If shipping companies that transport strategic goods are sold overseas, not only will Korea have to rely on overseas shipping companies to transport major strategic goods such as crude oil and LNG, but their sale will also cause serious concerns about energy security in times of a national emergency.”
“If the IMM consortium sells off Hyundai LNG Shipping to a foreign company or capital, it will be a great loss to Korea in terms of economy and security due to an outflow of Korea’s incalculable national and information assets such as LNG transportation expertise accumulated over decades and long-term contract rights to transport natural gas for KOGAS,” the FKMI continued.
“Korea depends on shipping for the transportation of major strategic materials it needs such as crude oil, gas, coal, and iron ore from foreign countries, because energy resources can be weaponized at any time as shown in the Russia-Ukraine war. Korean shipping companies ought to transport energy resources to ensure rapid response and stable supply in the face of rapidly changing international conditions,” the FKMI added.
“The Yoon Suk-yeol administration has been calling for the importance of energy security since its inauguration,” said the Federation of Korean Seafarers’ Unions (FKSU) in a statement. “The sale of the shipping company that transports LNG, one of Korea’s main energy sources, to a foreign company goes against this government policy.”
Hyundai LNG Shipping was the LNG transportation division of HMM (formerly known as Hyundai Merchant Marine) which was acquired by IMM Private in 2014 during Hyundai Merchant Marine’s liquidity crisis. Hyundai LNG Shipping is Korea’s largest liquefied gas carrier with 23 vessels, including 16 LNG carriers, six LPG carriers, and one LNG bunkering vessel, a strategic cargo carrier that mainly transports LNG imported by KOGAS.