An Arctic sea route carved with sheer grit… a ‘captain of dreams’ stronger than the waves - 스포츠경향

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Kim Hyun-gyeom, chairman of PanStar Group, is interviewed by Sports Kyunghyang at his office at PanStar Cruise Plaza Seoul in Jung-gu, Seoul, on the 29th. 2026.10.29 Kwon Do-hyun

The container ship for the Arctic route pilot voyage, ‘PanStar ACRO’, departed Busan New Port at 9:25 p.m. on August 22, sailed through the Arctic Ocean, and returned successfully to Busan New Port on October 11, 50 days later. Chairman Kim Hyun-gyeom of PanStar Group (sixth from left in the front row), executives and staff, and guests including Yang Jae-saeng, chairman of the Busan Chamber of Commerce and Industry (seventh from left in the front row), pose for a photo to mark the departure of the pilot voyage via the Arctic route. / Courtesy of PanStar Group

- What led you to make the bold decision to pioneer the Arctic sea route for the first time in Korea.

“Keeping pace with the Lee Jae Myung administration’s national agenda to open the Arctic sea route, the Korea Ocean Business Corporation and the Korea Shipowners’ Association held a call for carriers for a pilot voyage last May. Even established major lines hesitated to step forward. Driven by grit and a spirit of challenge, ‘I will break it open myself,’ I jumped in.”

- You must have faced significant diplomatic and procedural hurdles as well.

“It involved a difficult web of diplomatic tasks, from securing prior authorization to pass through Russian territorial waters (within 12 nautical miles) to obtaining documents from the U.S. Treasury’s Office of Foreign Assets Control (OFAC) approving dollar remittances and exemptions from sanctions against Russia. Under normal conditions, freedom of navigation is possible in the exclusive economic zone (EEZ) outside the coastal waters, but when you encounter unforeseen dangers like massive pack ice, entering coastal waters becomes unavoidable, making authorization from Russian authorities essential. So even before securing a ship to sail the Arctic route, we hired local agents in the United States and Russia and prepared thoroughly. In addition, by working closely with relevant agencies such as the Ministry of Oceans and Fisheries, we were able to secure all the diplomatic documents in time before departure.”

- If future Korea-Russia relations deteriorate and you cannot secure approvals, would passage itself become impossible.

“That is a reasonable concern. However, in future operations, depending on weather and ice conditions, I believe it will often be possible to avoid entering Russia’s 12-nautical-mile territorial waters altogether and detour through ice-free waters outside.”

- How did you prepare for extreme Arctic conditions such as pack ice, strong winds, and sea ice before departure.

“We operated while protecting the hull and incorporating weather data in real time. In particular, our company operates large ferries between Busan and Japan, carrying not only cargo but also people. We therefore maintain safety standards and operational know-how that are far more exacting and rigorous than those of ordinary container lines. Based on this capability, together with seasoned crew, we safely navigated through rough pack ice and shallow, narrow channels.”

‘PanStar ACRO’ passing through pack ice in the Arctic Ocean. Shot on mobile phones by the crew. / Courtesy of PanStar Group

- Although global warming is said to lengthen the usable season, for now operations are limited to 4-5 months a year (mainly July to November), and costs are high. In fact, the pilot voyage reportedly incurred losses in the billions of won. Is there commercial potential.

“This time, fuel costs were heavy because of the large ship’s weight. Next time, however, we plan to switch to a medium or small ice-class container ship with stronger economics. If we maximize the number of rotations during the summer season and shorten the cash cycle, I beleve we can secure ample commercial competitiveness and profitability through premium speed-based rates. For now, we are considering up to three sailings next summer and will gradually transition to a regular service.”

Major powers including the United States and China are engaged in fierce competition for supremacy over the Arctic’s strategic value. Amid this, the only countries effectively operating or pursuing container services on the Arctic route at present are Korea and China.

- China is said to be a strong competitor for us.

“China has been utilizing the Arctic route since 2013. When we were selected as the pilot carrier at the end of May, a Chinese company (Sea Legend) immediately announced it would deploy seven large container ships and operate eight commercial voyages on a weekly schedule via the Arctic route. They moved to seize the initiative with us in mind.”

- What is the mood in Busan and in the industry after the pilot voyage’s success.

“The entire city of Busan and the local community are highly encouraged. Although Busan is Korea’s representative maritime city, it had been in a slump for a while with no standout maritime issues. A Busan company broke open the Arctic route itself, and the overall mood in the region has completely come alive. These days, domestic and foreign shippers, logistics companies, and related agencies are visiting our office and contacting us daily, requesting cargo transport and inquiring about the next sailing schedule (laughs).”

- What role do you expect from the government to help the Arctic route take root in the future.

“A private carrier alone cannot shoulder both massive initial losses and diplomatic risks. Fortunately, a related special act recently passed, creating a legal basis for government subsidy support. Going forward, I hope the government will strengthen diplomatic channels with coastal states and continue to provide practical support such as building polar infrastructure and covering initial operating losses. It is time for the private sector and the public sector to join forces for the major task of national logistics security.”

Chairman Kim Hyun-gyeom is aboard PanStar Group’s ‘Star Link’ in 2013, taking a commemorative photo for its first call at Tokyo, after becoming the first among Korean and Japanese shipping companies to launch a regular Busan-Tokyo service. / Courtesy of PanStar Group

Chairman Kim Hyun-gyeom was born in 1961 in Jungang-dong, Jung-gu, Busan, the youngest of three sons and three daughters. His childhood was affluent, but after his father left the police force and started a business that failed, the family’s fortunes declined rapidly.

- I understand your boyhood was extremely difficult.

“When I was in the fifth grade of elementary school, my father, whose business had failed, disappeared, and my mother and eldest brother, unable to endure the harassment of creditors, left home for Seoul. My older sister, who was a middle-schooler, and I stayed at a friend of my father’s house. Then, in sixth grade, because I could not pay a 600-won school support fee, the teacher punished me by making me stand outside the classroom all day. I did not go back to school after that. I played on the beach with kids from an orphanage near Haeundae, selling gum and ice pops.”

- Is that why you entered middle school a year late.

“I did not enroll in middle school and delivered newspapers instead, but the head of the distribution office encouraged me at first to attend night school. I did well academically, so the college-student teachers suggested I enter a regular middle school and helped me find a night middle school (Donga Middle School, evening division). During the day I worked as an office messenger at general companies or banks to earn money, and at night I continued my studies. Around that time my father came back, and I even gave him spending money.”

- You must have felt very lonely and burdened at such a young age.

“Every day I would go up on a pedestrian overpass and watch the ships out on the open sea, thinking, ‘I want to leave Busan on a ship.’ Riding ships was my dream. Back then, the families of kids whose fathers worked as crew on deep-sea fishing vessels were considered well-off. Things improved a bit when I entered high school (Gaya High School), though. My eldest brother, who had been studying in Seoul, got a job as a teacher.”

In 1979, when he was a second-year high school student, the Buma Democratic Uprising broke out, and he ran with friends to Nampo-dong to join the demonstrations. In his senior year, he led two months of rallies demanding a direct election for the student body president. He won, leading to Busan’s first direct election for that post. Kim recalled, “Back then I received an overwhelming 96% of the vote, so my nickname was ‘Kim Il-sung,’ and word spread so that high schools in other regions, including Seoul, came to consult me.”

- You entered Sungkyunkwan University in 1981; why did you choose civil engineering (with a minor in trade).

“I wanted to make money. I wanted to be like Chairman Chung Ju-young, so when I was assigned to a college track as a freshman, I chose civil engineering. But after studying it, I judged that it would be hard to make big money if you did construction conscientiously. So in my sophomore year, when choosing a major, I selected trade. I often skipped major classes because I was protesting and drinking. I almost could not graduate, but the department chair proposed that if I passed the first-class civil engineer exam, it would count as having taken the classes. That is how I barely graduated (laughs).”

- You learned sales savvy in college by selling citron syrup, I hear.

“My older sister ran a yuzu farm in Namhae, and when prices collapsed, she made processed products and asked me to sell them. My friends and I went door to door to famous cafs in Seoul like Doksuri Dabang and Nandaran to sell. I eventually realized it is the head chef who chooses the ingredients, so I got close to them and achieved big sales through direct transactions. But because college students were carrying bags full of bottles of citrus syrup, the police often mistook them for Molotov cocktails and confiscated them (laughs). The business ended up taking a big loss of 10 million won. Later, we also made and supplied ingredients for shaved ice, but some clients siphoned off products and fled at night. It was the painful first failure of my life in business. Still, it was a decisive moment that taught me sales basics, cash flow, and the risks of selling on credit.”

By purchasing the ‘PanStar Dream’ for around 40 billion won in 2002, Chairman Kim Hyun-gyeom realized his long-held dream of launching his own ship. Kim Hyun-gyeom (photo, right ) is on stage at the ceremony marking the first Busan-Osaka sailing of the PanStar Dream in 2002. / Courtesy of PanStar Group

After graduating from college, he joined a non-vessel freight forwarding company (freight forwarding and agency services). Thanks to outstanding sales skills, he earned promotions every six months. In 1990, two years after joining, at the age of 28, he founded his own forwarding company, PanStar Enterprise Co., Ltd. The company grew rapidly into the top five in the industry, and during the IMF foreign exchange crisis he made substantial profits aided by the rising exchange rate. He resolved, ‘Within 10 years, I will launch my own ship.’ He realized that dream by entering the ferry business carrying both passengers and cargo.

- How did you introduce your first ferry.

“In 2002, braving a high annual interest rate of 12% from Saneun Capital, we purchased the ‘PanStar Dream’ in Japan for around 40 billion won. We sailed Busan-Osaka every other day, but posted a 10 billion won loss in the first year. Fortunately, by newly securing Hynix logistics and apparel cargo from Dongdaemun that had previously gone by air, we passed break-even in a year and a half, and the business did well thereafter. In 2007, with extraordinary low-interest support from Kenji Yamamoto, chairman of Japan’s Ribera Group, we even introduced a second ship, ‘PanStar Sunny,’ completing a daily Busan-Osaka service.” (A ferry is intended to transport cargo and passengers, while a cruise ship carries no cargo and is equipped with luxury hotel-like facilities for the voyage itself.)

“In 2008, when we introduced Korea’s first cruise ship, ‘PanStar Honey,’ our greatest crisis hit. We struggled to attract passengers, and losses piled up by 40 to 50 million won per day. In exactly one year we lost 50 billion won. To make matters worse, the Lehman Brothers collapse erupted in 2008. Our total debt exceeded 100 billion won, including 80 million dollars borrowed from the Ribera Group, and the company was on the verge of collapse. We even seriously discussed selling the company.”

“Chairman Yamamoto sent a notarized document. It said he would defer the debt owed to him for six years until after we repaid other creditors. He told me to ‘just survive.’ ‘Instead, if you do survive, make a plan for how you will repay the debt,’ he said. We sold two ships immediately, leaving only one ferry, and first repaid 30 million dollars. After bone-cutting restructuring and transport efficiency improvements, we fully repaid the remaining debt in six years and made a complete comeback.”

- What do you think was the driving force that helped you bounce back every time.

“It was thanks to the poverty I experienced as a child and starting from nothing. When you have nothing to lose, you can take on challenges without fear. My lifelong benefactor, Chairman Yamamoto, told me this: ‘Shipping is like waves. Waves gather their strength, rise high and splendidly, and sometimes they also break apart. So keep your spirits up.’ I always try to do my utmost for those who have helped me, and to use the money I earn to help someone else in turn.”

Kim Hyun-gyeom, chairman of PanStar Group, is interviewed by Sports Kyunghyang at his office at PanStar Cruise Plaza Seoul in Jung-gu, Seoul, on the 29th. 2026.10.29 Kwon Do-hyun

Starting 26 years ago with five employees, PanStar Group has grown into a mid-sized shipping group with about 700 employees, six affiliated vessels, and annual sales of about 300 billion won. Recently, the company has strengthened its unique capabilities by directly designing the cruise ferry ‘PanStar Miracle’a hybrid of cruise ship and ferryand unveiling it through domestic technology and domestic shipyard construction. Asked whether he still has a dream he wants to achieve, Kim said, “My last dream is to build, with our own hands, a large, authentic cruise-only ship that can carry 3,000 passengers and put her to sea. I want to achieve that dream while I am alive.”