Johanah·KCGI·Bando Alliance Formed... Hanjin Management Rights Dispute Intensifies

"Will Not Take the Front Line in Management... Introduction of a Professional Management System"

[Asia Economy Reporter Yu Je-hoon] Former Korean Air Vice President Cho Hyun-ah, private equity fund (PEF) KCGI, and Bando Construction have formed an alliance ahead of the March shareholders' meeting, which will determine the control of Hanjin Group. The management dispute within Hanjin Group appears to be intensifying.

Hanjin KAL announced on the 31st that the shareholding ratio of the limited liability company Grace Holdings (KCGI) and its special related parties changed from 17.29% to 32.06%. This is due to a joint holding agreement signed by former Vice President Cho (6.49%), KCGI (17.29%), and Bando Construction (8.28%).

Law firm Taepyungyang issued a joint statement in the names of former Vice President Cho, KCGI, and Bando Construction on the afternoon of the same day, stating, "We share the view that the current management situation of Hanjin Group, including Korean Air, a national company, is in a serious crisis and that it cannot be improved under the current management." They added, "It is necessary to enhance shareholder value through innovation of the existing management methods, including the introduction of a professional management system, and management efficiency."

They also said, "To this end, we have agreed to actively cooperate in activities for the growth and development of Hanjin Group, such as exercising voting rights and shareholder proposals at the upcoming Hanjin KAL shareholders' meeting." They explained, "This was achieved suddenly as former Vice President Cho, a member of the existing major shareholder family, fully agreed after much consideration with the improvement directions that KCGI has consistently raised, and Bando Construction also actively agreed."

Furthermore, they stated, "We will establish exemplary governance to strengthen a professional management system and board-centered management, promoting the interests of general shareholders who have been marginalized without being influenced by the interests of specific individual shareholders." They concluded, "To this end, the three of us will not take the lead in management but will do our best to ensure innovative management by professional managers."

This content was produced with the assistance of AI translation services.