South Korean steel giant POSCO Group is thinking of acquiring shipping company HMM to diversify its investment portfolio other than steel.

The company has set a group of advisers, including Samil PwC and Boston Consulting Group, to estimate the possibility of the acquisition of HMM. 

POSCO's annual spending on logistics is around 3 trillion won, including importing raw materials like metallurgical coal, steel products, and battery materials, and exporting finished products.

The company sees it could stabilize procurement and exports as well as reduce risks such as rising freight rates and supply chain disorders by taking over a shipping company. Therefore, it expects an overall cut in logoistics costs as well as supply chain efficiency across the group.