Hansung to expand trade into Southeast Asia in 2nd half of 2002

Choi, Pungnam, president of Hansung Shipping, recently met with press members on September 6 and disclosed plans to take over operating rights from Choyang Shipping as well as future goals for the company.
He revealed that it will deploy regular container vessels in Southeast Asia and the Middle East by the second half of next year and plunge into ocean-going trades within three years, asking for cooperation on transferred rights from Choyang.

- Could you tell us that what situation your company is in after taking over Choyang?

Mr. Choi: Well, we have taken charge of 16 non-managerial workers from Choyang since September 1st. So now we have 65 employees in our small offices in Seoul. Because the offices are so small and narrow, we are going to move to the nearby Myoungji building within the next year; we expect to move around May next year. Also, we are going to add 2 or 3 more workers from Choyang Line. As you may know, we just launched a Pusan and Dalian service September 3rd. However, as the "A"* group hasn't recognized our Choyang take over rights, we are experiencing a few problems. We felt sorry after hearing a rumor that one ?A? group shipping company would operate vessels with the same schedule as ours.
In spite of all this, we are going to open a route bound for Japan at the end of September or in early October. Regarding this, we have an issue to resolve with the Korea Nearsea Freight Corporation. We are sure that we can get through it all.

- Would you mind telling us why you took over operating rights from Choyang?

Mr. Choi: I dare to say that Choyang is one of the most respectable Korean shipping companies. Choyang was a kind of idol to me and has been a role model in the shipping industry for a long time. Hearing about Choyang's bankruptcy was terribly upsetting for everyone. Around the middle of August, we were offered the option to take over the operating rights and we didn't hesitate. We contracted on August 31.

- What action will you take against shipping companies that don?t recognize those operating rights?

Mr. Choi: Although there are some objections in Korea/China trades, we consider all things to be fine, as we are finally in cooperation with other Korean shipping companies. However, if those conditions did not support us, we would not be able to help but consider deploying vessels in the four largest ports in China. If it also were so difficult, we would have to think over cooperating with shipping companies outside of the "A" group.
We are also in continuous communication with the KNFC regarding the Korea/Japan trade. To cooperate with this group, we will accept any offer. Sooner or later, we will deploy container vessels in the trade.

-What is the strength of Hansung Shipping's service and what kind of container services are you experienced in?

Mr. Choi: For myself, I worked as a sales person in Pan Ocean Shipping. Since 1994, when we kicked off container services in Inchon and Nampo trade, we have provided container services to North Korea. We composed the word "Jimham" - meaning container box; it comes from the North Korean dialect of Korean. We are confident in our sales activities. We will not be considering dumping shipping rates, but rather to satisfy customers with good sales service. We think it is possible, and we can do that.

- Would you mind telling us about your company's future plans?

Mr. Choi: As I mentioned earlier, we can afford to handle shipping business. And just like Information Technology has boomed all around the world in recent years, we also would like to concentrate on a combined business shipping and Information Technology solution. For all of these businesses, Arion Corp., a cooperating company, has developed a program called "Webmail", which can lessen telecommunications costs by one fifth. We expect this company to be profitable sooner or later. Our shipping portal site, Bulkdesk.com, is under development right now. We are focusing on the Southeast Asian market and specialized cargoes for this site's targets. So we are going to run regular trade routes more actively. In the second half next year, we are planning to launch Southeast Asian and Middle Eastern services. At present, we are providing conventional services in the Middle East. Within the coming three years, we will grow as a worldwide container liner serving in Europe and America as well.
In that case, we will surely get into ocean-going container trades through alliances with 5 or 6 other shipping companies.

- What have you determined so far and what is your wish for the shipping industry?

Mr. Choi: Only serious dedication is productive. I think the shipping industry has a lot of value-added products and will be profitable. I think many investors can seriously look to the shipping industry for solid, profitable investments. We have urged the government to inform people about the importance of the shipping industry and to see the benefits when shipping companies purchase vessels. Shipping companies need to cooperate on rates competition. Surely shipping companies have to compete on the basis of service in order to satisfy customers.


* ?A? Group ? trade routes between Korea and China are heavily regulated. In order for a company to operate in Korea/China trade it must receive government permission. Once permission is received, the company is placed in either the ?A? OR ?B? GROUP.