Kang Sung-bu Fund: "Hanjin Group Must Make Efforts to Improve Financial Structure"
[Asia Economy Reporter Park Ji-hwan] KCGI (Kang Sung-bu Fund), an activist private equity fund and the second-largest shareholder of Hanjin KAL, the parent company of Korean Air, pointed out that although Korean Air's debt ratio is increasing, the management of the Hanjin Group is not making efforts to improve the financial structure.
Shin Min-seok, Vice President of KCGI, stated on the YouTube channel 'KCGI TV' on the 7th, "As of the end of the third quarter last year, Korean Air's debt ratio was 860%, ranking first among KOSPI 200 listed companies. Considering that the average debt ratio of KOSPI 200 listed companies is 91.3%, Korean Air's debt ratio is excessive."
In February last year, Hanjin Group announced 'Hanjin Group Vision 2023,' which included the sale of the Songhyeon-dong site, among the shareholder proposals publicly requested by KCGI. However, Vice President Shin pointed out, "None of the related matters have been implemented at all, raising doubts about whether the management is actively managing the crisis."
Vice President Shin said, "In November last year, Hanjin Group announced active cost management and the sale of low-profit businesses through executive personnel changes, but the sale of the Songhyeon-dong site announced in February last year is still far from realization," adding, "They are still only announcing formal governance improvement plans and showing no efforts to improve the financial structure."
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Vice President Shin also warned, "I think another crisis may come in the first half of this year through Wolsher Grand Hotel, a 100% subsidiary of Korean Air," pointing out, "The private equity fund (PEF) maturity is approaching while the situation remains unprofitable." He added, "As the second-largest shareholder of Hanjin KAL, KCGI recognizes the risks facing the Hanjin Group and expects efforts from the executives to resolve them."
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