Before the war, a mysterious South Korean tycoon bought 1/3 of the world's supertanker capacity! Is he the biggest winner of the Iran war?

As the Iran war reshapes the global energy landscape, South Korean shipping magnate Ga-Hyun Chung is quickly emerging as one of the biggest winners of this crisis, thanks to a shocking pre-war gamble that has stunned the industry.

According to Bloomberg on March 14, citing more than a dozen industry insiders, Chung’s Sinokor Group rapidly bought or leased a large number of Very Large Crude Carriers (VLCCs) in the months before the conflict began. By the end of February, the fleet size was about 150 ships, accounting for nearly 40% of the then-unsanctioned, unoccupied global VLCC fleet. With the Strait of Hormuz closed due to the war, the daily charter rate for supertankers anchored in the Persian Gulf soared to $500,000, nearly ten times the level a year earlier.

This bold move has left a deep mark on the market. During Sinokor’s aggressive purchasing spree, the average one-year VLCC charter rate worldwide once exceeded $100,000 per day, setting a record high since 1988. Halvor Ellefsen, director at Fearnleys Shipbrokers UK Ltd in London, said, “Sinokor controls a large part of the fleet, intensifying market competition, and sometimes even setting prices.”

Currently, several Sinokor ships stranded in the Gulf have completed loading and are generating revenue through floating storage facilities. Even after the war ends, restructuring shipping flows will take time, and high freight rates are expected to persist over a longer period, providing ongoing outsized returns for shipowners like Sinokor.

Pre-war Strategy: Unprecedented VLCC Buying Spree

The speed and scale of Sinokor’s buildup have shocked industry veterans.

According to Bloomberg, in January this year, Sinokor quickly bought or leased a large number of VLCCs within just a few weeks. An article from Wallstreetcn on February 16 mentioned that the company accumulated about 120 supertankers in the past one or two months, a fleet size unprecedented in its history. By the end of February, some industry insiders estimated the number had increased further to about 150 ships, representing nearly 40% of the then-available, unsanctioned, unoccupied global fleet. Regarding purchase prices, a broker provided data indicating Sinokor bought some ships from other owners at an average price of approximately $88 million.

This wave of acquisitions has caused a stir in the market, fueling speculation about the financiers behind this gamble. Bloomberg reported that at least two major shipowners found, during negotiations to sell ships to Sinokor, that the ultimate buyer was an entity linked to Mediterranean Shipping Company (MSC) founder and Italian shipping billionaire Gianluigi Aponte. The exact relationship between the two companies remains unclear, and it’s unknown how many Sinokor deals involve MSC.

At that time, the global oil tanker market was already tight—many ships were constrained by sanctions or used as floating storage, reducing the available vessels for lease, while global oil shipping volumes were rising simultaneously, making this buying spree even more timely.

Mysterious Leader: Low-Profile Wealthy Second-Generation’s Radical Shift

Behind this high-profile gamble is a low-profile heir from a Korean shipping family.

Founded in 1989, Sinokor initially focused on container shipping, launching Korea-China container routes in its first year. The group’s chairman is Tae-Soon Chung, father of Ga-Hyun Chung, who is well-known in Korea’s shipping industry and has served as chairman of the Korea Shipowners’ Association. Compared to his father, Ga-Hyun Chung is extremely low-key; even within the shipping circle, those who know him describe him as mysterious and elusive, actively avoiding publicity.

Sources familiar with Sinokor say Ga-Hyun Chung makes all key decisions personally and negotiates the most important contracts himself. He communicates with his team and external partners mainly via WhatsApp groups, sometimes with dozens of members, used both for internal commands and external negotiations. He also often reaches out proactively to competitors and shares market insights. Industry insiders note he is passionate about judo; a former employee described his dedication and physical strength, and industry rumors suggest he rarely loses in arm-wrestling matches.

Before this expansion, Sinokor was seen as a minor player in the VLCC market. Those familiar with Ga-Hyun Chung generally regarded him as a conservative risk-taker. However, in recent years, his moves have become increasingly aggressive— in 2024, the company placed dense bookings that drove up oil tanker charter rates, confusing peers, though that market quickly cooled. This latest scale of buying has stunned the entire shipping industry.

War-Driven Profits: Hormuz Blockade Sparks Explosive Returns

Following the US and Israel’s attacks on Iran, Sinokor’s pre-war arrangements quickly translated into real gains.

Before the conflict, Sinokor quietly moved at least six empty supertankers into the Persian Gulf as standby. Bloomberg reported that on January 29, the Singapore Loyalty transited the Strait of Hormuz into the Gulf, and within days, at least five more ships followed, gathering near Dubai. It remains unclear whether Sinokor’s deployment was a preemptive move based on expectations of US military action or simply to seek cargo in major oil-producing regions.

After the war broke out, these empty tankers became scarce floating storage assets in high demand. Brokers say Sinokor’s quote for shipping its VLCCs from the region to China rose to about $20 per barrel, compared to roughly $2.5 last year. Since March 2, as most of the Strait of Hormuz has been closed, charter rates have surged again. Several ships have completed loading and are renting out as floating storage, earning $500,000 daily. At this rate, a ship bought for $88 million can recoup its cost in less than six months.

The market outside the Gulf has also benefited. According to Tankers International, Sinokor recently secured a deal from Brazil valued at a daily rate of $181,000, about three times the average daily VLCC earnings last year. Oil analyst Carl Larry of Enverus said, “A good strategy requires a bit of luck and a bit of planning.” He believes Sinokor’s large-scale bets on oil tankers have “a rare advantage.”

Outlook: Excess Returns May Continue, Long-Term Uncertainty Remains

Despite the short-term gains, whether Ga-Hyun Chung’s gamble will lead to long-term success remains uncertain.

The International Energy Agency has characterized the supply disruptions caused by the Iran conflict as the largest recorded oil supply interruption. Reduced supply means that as the situation evolves, global maritime oil transportation will decline, potentially suppressing long-term demand for oil tankers. Additionally, some fleets are still stranded inside the Strait of Hormuz, and their future operations are uncertain.

On the other hand, Bloomberg reports that even after the war ends, adjusting shipping flows will take time. Rerouting patterns are expected to keep freight rates high for a period, allowing shipowners like Sinokor with large fleets to continue benefiting. The ultimate outcome of this gamble may still depend on how the conflict unfolds and how long it lasts.