South Korea has granted conditional approval for Indonesian conglomerate Sinar Mas Group to acquire Hyundai LNG Shipping following a national security review of the foreign investment transaction (11/11). The approval was issued by South Korea's Ministry of Trade, Industry and Energy after completing its review of the proposed acquisition.

According to Chosunbiz, reported on Wednesday (11/11/2026), the transaction had raised concerns about South Korea's national energy security because of the strategic importance of the company's gas transportation operations.

The ministry approved the acquisition subject to several national security requirements. However, the specific conditions have not been disclosed publicly.

Sinar Mas Acquisition Valued at 400 Billion Won

Sinar Mas is acquiring Hyundai LNG Shipping through its subsidiary, Frontier Resources, for approximately 400 billion won, equivalent to around IDR 5.4 trillion.

Including debt, the company's estimated value reaches 3.8 trillion won, or approximately IDR 52 trillion.

The seller, a consortium comprising IMM Private Equity and IMM Investment, is targeting November 23, 2026, to complete the transaction. This is nearly one year after the purchase agreement was signed with Sinar Mas.

Hyundai LNG Shipping's Role in South Korea's Energy Sector

Hyundai LNG Shipping operates 12 liquefied natural gas (LNG) carriers and six liquefied petroleum gas (LPG) carriers.

The company also holds long-term transportation contracts with Korea Gas Corporation (KOGAS), a state-owned company in South Korea.

The proposed foreign acquisition previously faced strong opposition from shipowners in South Korea. They warned that transferring control of strategically important gas carriers to foreign ownership could threaten national energy security and lead to a loss of expertise in the maritime sector.

These concerns were among the issues surrounding the proposed transaction.

Sinar Mas Commits to Maintaining Korean-Flagged Ships and Jobs

Sinar Mas has sought to address concerns about the acquisition by committing to maintain the operations of Korean-flagged vessels and protect existing jobs.

The commitment is intended to address concerns about the potential transfer of control over strategically important maritime assets to foreign ownership.

The acquisition received conditional approval from the South Korean government, with the specific national security requirements remaining undisclosed.

Hyundai LNG Shipping's Separation from Hyundai Merchant Marine

Hyundai LNG Shipping was established in 2014 following its separation from Hyundai Merchant Marine, which is now known as HMM.

The company operates LNG and LPG carriers and maintains long-term transportation contracts with Korea Gas Corporation (KOGAS).

PHOTO: HYUNDAI LNGSHIPPING

This article was created with AI assistance.

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