Korean companies invest in domestic shipping companies! HMM will become a shareholder of Polaris Shipping

HMM, South Korea's flagship shipping company, will become a minority shareholder in Polaris Line, a domestic shipping company focused on operating very large ore carriers.

China's state-owned Cosco Shipping has also bid for Polaris, which ships iron ore and coal to Posco, the South Korean steel group, and Kepco, the South Korean utility, amid concerns about foreign ownership.

Polaris, which has 29 bulk carriers (including 18 very large tankers) and two LR2 tankers, will sell for 400 billion to 500 billion won ($301 million). HMM will contribute 60 billion won ($45 million) and KOBC 40 billion won ($30.10 million).

In 2022, the company's net profit fell 32% year-on-year to $92.54 million. While making money, Polaris has experienced several crises that have caused the company to delay past attempts at initial public offerings, most notably the sinking of the Stellar Daisy in March 2017 and the grounding of the Stellar Flag in February 2020.