Korea shipping firms asked to register on Port of Pusan

The big 5 Korean shipping companies to use the Port of Pusan are being asked to register their vessels in Pusan, because their port of registry is currently at other ports, for example, Hyundai Merchant Marine in Ulsan and Hanjin Shipping in Inchon. As such, they do not pay local taxes to Pusan, causing billions in tax losses for Pusan annually.

The City of Pusan revealed that among the largest five shipping companies in Korea, only Heung-A shipping and Korea Maritime Transportation Corporation (KMTC) put their port of registry as Pusan. However, Hanjin Shipping and Choyang Line registered their vessels in Inchon, and HMM registered in Ulsan.

Current legislative acts allow the shipping companies to register vessels in the city where the vessel calls at or where its business takes place. In spite of the law, the companies registered their vessels in connecting cities to improve their corporate images.

An official from the City of Pusan said "HMM raises over 90 percent of its incomes through stevedoring, storage, and handling of transit cargoes in the HBCT and Kamman Terminals. In addition, considering the employees and the areas of buildings, although 65 percent of HMM business is in Pusan, they paid local taxes amounting to 200 million won annually to Ulsan, where only 2 percent of its business is handled."

Among three of the big shipping firms, only Choyang is positively considering changing its port of registry, and HMM will when they introduce new vessels. Hanjin will think over it when they change departments, he added.

Fifty-four HMM vessels, or 4.2 million tons, have been using Pusan since they registered in 1976 in Ulsan. Forty-six Hanjin vessels, or 3.6 million tons, registered in Inchon in 1957, Heung-A shipping registered 47 vessels, or 370 thousand tons, in Pusan in 1961, Choyang Line registered 15 vessels, or 320 thousand tons, in Inchon in 1961, and KMTC 23 vessels, or 210 thousand tons, in Pusan in 1985.