[THE INVESTOR] Hyundai Glovis has once again turned down proposals by the US government to use US-registered ships for its car shipments to the nation, according to company sources on June 16.

US government officials including maritime administrator Paul Jaenichen recently came to Korea to discuss marine policies with Korean officials from the Ministry of Oceans and Fisheries, sources said.

In the latest meeting at Sejong City, South Chungcheong Province, representatives from Hyundai Glovis, a logistics unit of South Korean auto giant Hyundai Motor Group, were also present as the US government sought their attendance.

The US side asked the company to use their vessels, which often return back empty after unloading goods in Korea. Hyundai Glovis said the officials have made similar proposals several times since last year.

“We once again turned down their offer because we already have our own ships and do not want to pay extra costs,” a Hyundai Glovis spokesperson told The Korea Herald by phone.

Hyundai Glovis currently operates 66 ships to export vehicles globally. As a major logistics company of the nation’s largest automakers Hyundai Motor and Kia Motors, it shipped around 200,000 vehicles to the US last year, a 31 percent share of the total 640,000 units exported to the nation.

Apart from calling for the use of US vessels, the government also requested the company to use their native sailors, whose wages are much higher than that of Korean sailors.

Both the Korean Maritime Ministry and Hyundai Glovis said there was no pressure from the US government. However, Washington’s continued push is seen by industry watchers as trade pressure on Korea in its attempt to offset the widening trade deficit after the bilateral free trade agreement that took effect in 2012.

“We internally view the latest US move as an effort to offset trade deficits in the lead-up to the presidential election in November -- although we are not able to admit it officially,” said a senior government official from the Ministry of Commerce.

According to the Korea International Trade Association, the trade deficit between the US and Korea rose from $13.2 billion in 2011 to $28.3 billion last year after the bilateral FTA took effect in March 2012. Among last year’s deficit, the Korea’s surplus in the automotive sector stood at $16.6 billion.

Following the news report, Hyundai Glovis’ share price dropped 4.7 percent to close at 172,500 won ($147.20) on Thursday, from the previous day.

By Shin Ji-hye (shinjh@heraldcorp.com) on">shinjh@heraldcorp.com)