South Korea’s largest LNG shipowner is heading for new ownership as private equity firm IMM is readying to sell Hyundai LNG Shipping to Indonesia’s Sinar Mas Group in a deal valued at around KRW400bn ($274m).
Market sources in Korea said the IMM consortium, which controls 100% of the company, is set to sign a stock purchase agreement, though the process remains open to competing bidders.
Talks between Sinar Mas and IMM have been underway for months, with the Indonesian conglomerate exploring ways to secure a controlling stake. While no exclusive rights have been granted, Sinar Mas appears to be leading the race as IMM looks to exit an investment dating back 11 years.
IMM and its affiliate IMM Investment acquired Hyundai LNG Shipping from HMM in 2014 for KRW1.03trn, of which roughly KRW400bn was equity. An earlier attempt by IMM to sell the company back to HMM collapsed two years ago after the parties failed to agree on valuation.
The drawn-out search for a buyer has since raised concerns about the shipowner’s competitiveness and long-term stability.
This latest move has triggered pushback from Korea’s shipping lobby. The Korea Shipowners’ Association warned that a foreign takeover could undermine national energy security, noting Hyundai LNG Shipping’s role as a core carrier of LNG and LPG under long-term contracts with state-run Korea Gas Corporation (KOGAS). The company owns 12 LNG carriers and six LPG vessels, making it central to the country’s gas supply chain.
The KSA argued that an overseas sale risks sending strategic assets and sensitive operational know-how out of the country. It highlighted that Korean-flag LNG carriage is already slipping — from 38.2% in 2024 to a projected 12% by 2029 and zero by 2037 — and said a foreign takeover would accelerate the decline.
Whether regulators will allow the sale remains unclear. A previous approach by European buyers in 2023 was effectively blocked after the government raised concerns over losing control of national energy transport capacity. HMM later entered the process as a Korean alternative, but negotiations stalled over price.
For Sinar Mas, acquiring Hyundai LNG Shipping would mark a significant expansion into deepsea energy transport. The group already operates shipping companies such as Sinar Mas LDA Maritime and Golden Agri Maritime, primarily serving its industrial and commodity units. The conglomerate has been active in Korean M&A, recently acquiring semiconductor equipment maker Hosan Tech and MSS Holdings, parent of household goods brand Monalisa. If approved, the deal would give Sinar Mas a major foothold in LNG logistics at a time when Asian demand for gas remains strong. But for now, the sale sits at the intersection of commercial interest and national strategic concern — and government approval may yet decide the outcome.
