Korea Line’s revenue slows after peaking; attention turns to Woo Oh-hyun’s shipping investments

The market is watching closely to see whether Woo Oh-hyun, chairman of SM Group, will once again focus on shipping investments. 1970Interest is growing as the paths of two people who began as poultry-farming colleagues in Jeolla Province in the decade are compared. SM Group has not yet disclosed specific investment plans.

Pan Ocean is aggressively expanding its fleet through new orders for very large crude carriers (VLCCs) and large-scale acquisitions. The company is using a strategy of rapidly increasing its transportation capacity through new orders and acquisitions. These moves are drawing attention within the industry.

Korea Line’s consolidated revenue 2024 year 1 trillion 7472 hundred million won, and its slowdown from the peak is pronounced. The company cited fleet expansion of LNG carriers and long-term contracts with major customers as the reasons for its strong performance in 2024 year. Long-term contracts with companies including POSCO affected its results.

Shinhan Investment & Securities projected 2025 in 1 trillion 2770 hundred million won, 2026 in 1 trillion 1233 hundred million won, with consolidated revenue expected to decline. The report pointed to the importance of cash management strategy alongside the contraction in scale. According to the report, the company’s cash-use plans were identified as a key consideration.

Compared with Pan Ocean’s aggressive fleet expansion, the view is that, after its business scale has peaked, Korea Line’s appropriate use of cash will be important. Korea Line has not yet disclosed specific response measures. Whether the company makes further disclosures is something to watch.

Information disclosed to date is based on company announcements and securities firms’ projections. The situation could change if disclosures concerning further mergers and acquisitions or vessel orders are made. Investors should check the company’s official disclosures.