HMM's turnaround from creditor control to record profits

HMM (then Hyundai Merchant Marine) lost money for nine straight years after 2010, with cumulative operating losses of about ₩3.8T; by early 2016 its capital was eroded and KDB-led creditors were rolling over ₩4.8T of debt.

The rescue was creditor-led: shareholders approved a seven-to-one capital reduction, Hyundai Group lost control and KDB took over; HMM then ordered 20 ultra-large containerships with policy financing and joined THE Alliance in July 2019, cutting unit costs.

The filings showed the turn: 2020 delivered a ₩0.98T operating profit — the first in a decade — and 2021 smashed records with revenue of ₩13.79T, operating profit of ₩7.38T and net profit of ₩5.33T.

2020 operating profit ₩0.98T — first in ten years; 2021 revenue ₩13.79T (+115%), operating profit ₩7.38T (+652%) and net profit ₩5.33T, all records since 1976.

Creditor-led restructuring and the capital reduction stabilized the balance sheet.

Ultra-large vessels lowered unit costs at scale.

THE Alliance membership restored network competitiveness.

When an industry downturn nearly kills you, survive first through a debt work-out, then use the recovery — new capacity and alliance membership — to convert scale into record profits.

HMM's 2021 operating profit ranked it fourth among Korean listed companies, ahead of Hyundai Motor, capping the creditor-controlled shipper's recovery.